The CEO of Ripple, the company that owns, among other products, XRP cryptocurrencies, made a bold proposal to “solve” Bitcoin mining.
In recent months, Bitcoin has had its technology associated with the uncontrolled consumption of energy in its mining, a fundamental activity to ensure network security and that all transactions are processed.
When Satoshi Nakamoto created Bitcoin, he put in place the Proof-of-Work (PoW) consensus mechanism, which rewards those who have today’s robust mining machines known as Asics. This then is the point where critics of Bitcoin attack, trying to say that the currency consumes energy that is harmful to the environment.
Ripple CEO Tries to Solve Bitcoin Mining
Even because of its mining, Bitcoin is the main digital currency in the world and the largest in market value. In addition, it is considered the most decentralized, even by government agents who have already studied the sector.
However, in the view of Chris Larsen, CEO of Ripple, which owns one of the most centralized cryptocurrencies in the market, Bitcoin mining is a problem to be solved, as he authored a proposal last Thursday (9).
“You may have seen me and others championing Bitcoin to move away from PoW to deal with long-term energy consumption. A common snag is that miners would never embark on this. Well, today I’m proposing a solution to that!”
You may have seen me and others advocate for Bitcoin to move away from PoW to address energy consumption long term. A common pushback is that miners would never get on board with this. Well today I’m proposing a solution to that! 1/2 https://t.co/U8YstHPZOA
– Chris Larsen (@chrislarsensf) December 9, 2021
In your idea, an important solution would be to verify what computational power is created by the companies and pools in the market today. After that, a reward mechanism would be created until the end of Bitcoin mining in 2140, rewarding companies in the future based on their current production.
“It would no longer be necessary to invest in mining machines”
In theory, this would mean saying that no more investments in infrastructure and machines would be needed to mine Bitcoin, just keeping what already exists. To guarantee future rewards even a staking system could be created, with rules for participants, in Larsen’s view.
“The least disruptive code proposal would simply be to take a snapshot of the current hash rate of existing miners and then reward the miners on a pro rata hash power basis up to 2140. Existing miners would simply be entitled to future rewards from bitcoin without the need to expend additional energy or make additional investments in mining platforms. These rights may be subject to stakeout rules to further protect the network.”
Ripple’s CEO advocated changes to the PoW to maintain the longevity of Bitcoin mining. Despite this bold proposal being presented, Larsen confessed that it is not perfect, but that it could help in future discussions on the subject.
Bitcoin mining is a sensitive issue as it involves securing the largest decentralized network in the world.
Thus, hardly any proposal will be accepted to change these rules, especially from someone who is not quite an expert in this sector of mining and decentralization. It is worth remembering that in recent years the Ripple community has been one of those that most attacked the image of Bitcoin and its technology, this “help” being subject to suspicion.