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The founder of Ethereum praises the allocation mechanism before upgrading the merge…Here’s what he said!

The founder of Ethereum praises the allocation mechanism before upgrading the merge…Here’s what he said!

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Answer The founder of Ethereum praises the allocation mechanism before upgrading the merge…Here’s what he said!

In two weeks from now, the Ethereum network is set to undergo a consolidation process, switching the transaction validation method from a Proof of Work mechanism to a Proof of Stake mechanism, which will significantly reduce energy usage and carbon emissions.

Before the highly anticipated event, slattered Vitalik Buterin highlighted the security benefits of moving from Proof of Work to quota, noting that mining threatens Bitcoin in the long term, while sharing his view on the crypto market and its future.

Ethereum Founder: Upgrading is a Matter of Efficiency

According to Buterin, Proof of Stakes is a much more efficient system in terms of providing marginal security, and added:

Read:The value of funds deposited in an Ethereum 2.0 contract exceeds $25 billion in ETH

The question is always: How much security can you buy for every dollar you spend paying for it in a year?

Proof of Stakes can buy something like security 20 times more for the same cost.

The co-founder of the Ethereum project praised the upcoming upgrade, noting that the entry cost to participate in the blockchain network should be low.

While Proof of Stake validators have lower costs and higher entry costs, PoW workers have medium ongoing costs and medium entry costs.

Therefore, Ethereum seeks to reduce costs to the minimum possible.

Proof of Work Mechanism A Long-Term Threat to Bitcoin?

Since the Proof of Work mechanism provides significantly less security for every dollar spent on transaction fees, Buterin envisioned the consensus mechanism as a primary security threat to Bitcoin.

In the long run, once Bitcoin is fully released and mining no longer secures the network, the founder of Ethereum tells that Bitcoin security will come entirely with fees.

The founder of Ethereum believes that Bitcoin does not succeed in obtaining the level of fee revenues required to secure what could be a multi-billion dollar system.

Read:Nasdaq begins testing Bitcoin (BTC) on the exchange

Thus, Buterin assumes that only a small percentage of Bitcoin will be required to pose a serious threat.

What will the future look like when there are $5 trillion in bitcoin, and it will only take $5 billion to attack the network?

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