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Vitalik Buterin, the co-founder of Ethereum, the third largest cryptocurrency by market capitalization, talked about why he opted for Mail Demonstration [PoS] Work trial [PoW], in an interview with Blockchain Insider.
Buterin began with a brief introduction of Proof of Stake and Proof of work, stating that PoS is a different type of consent mechanism from Proof of Work. Buterin also added that PoW is just a way for computers, which make up Bitcoin, Ethereum and other networks, to talk between them and agree "which messages to process in which order". He said:
"Proof of work you can think of it as a sort of voting mechanism where you know that a unit of computing power votes well is a huge simplification, but it's a good way to think about it, proof of the mail replaces that with essentially a currency within the system equals one vote "
He went on to say that both mechanisms are similar because they use economic resources to "maintain the level of participation that can be had in the network", adding that this is one of the necessary factors. If this were absent, a participant could pretend to be a "billion false participants" and take over the entire network.
Buterin also said that Proof of Stake is better than Proof of Work, adding that there are a couple of reasons for it. He said:
"One of these is that with Proof of Work, in order to demonstrate that you actually have this computing power available, you basically have to turn these computers on and have them solve the math puzzles 24/7 and that means a huge energy consumption"
He further clarified:
"And I think that a Bitcoin is likely to surpass most of the countries in the world and Ethereum is certainly not at that point but it is still and much higher than I would like it to be"
Moreover, Buterin said that PoS is much more efficient as the only prerequisite is to prove that you have coins and sign a digital signature with the same cryptographic key that those coins have, and thus decrease the energy consumption of the network.
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