The IOG founder recommends that Bitcoin adopt the Ofelimous protocol developed by Cardano. Here’s why.
Founder of CardanoIOG, and one of the creators of Ethereum, Charles Hoskinson, recorded a video commenting on recent White House recommendations for cracking down on all energy-intensive industries, including Bitcoin mining.
Hoskinson believes the recently announced Cardano protocol Ofelimous could help Bitcoin survive as a cryptocurrency. Ofelimous is a proof-of-useful work protocol created to reduce the carbon footprint of proof-of-work chains like Bitcoin and many other coins.
Cardano rogue protocol
sinful A recently introduced provable, secure, and useful proof-of-work protocol whose purpose is to minimize the amount of energy used by the proof-of-work chain. Unlike Proof of Work, Proof of Useful Work ensures that miners’ computational power is directed toward solving real-world problems.
However, this could allow an attacker to use the system to solve a simple problem and create more blocks than a miner would do with the same resources, so the security of blockchain-powered blockchains decreases. But Cardano assures us that Ofelimous can easily solve this dilemma.
Hoskinson recommends Bitcoin miners should switch to this PoUW protocol to minimize their carbon footprint. This now rivals what the small country left behind.
The Climate and Energy Impact of Crypto Assets in the United States https://t.co/SpHAyvnOwu
— Charles Hoskinson (@IOHK_Charles) September 8, 2022
White House Proposes Banning Crypto Mining Unless It’s More Environmentally Friendly
A group of White House lawmakers released a report prepared at the behest of President Biden in March this year. This is related to the overuse of energy by various industries, including cryptocurrency mining.
In a nutshell, the report recommends that these industries should be banned if they cannot significantly reduce their energy consumption. The large carbon footprint left by the Bitcoin blockchain is a question that has been raised time and time again by BTC critics. According to recent reports, BTC miners (the network runs on his PoW consensus protocol) use the same amount of energy as small nations around the world consume.
This issue is becoming more and more important as the prices of energy resources are currently rising rapidly. the report recommendsHowever, switching to a proof-of-stake protocol for PoW blockchains will significantly reduce the amount of energy used.
Switching to alternative cryptocurrency technologies such as Proof of Stake can significantly reduce overall power usage to less than 1% of current levels.
The aforementioned Cardano works on this protocol, and the second largest blockchain, Ethereum, is also moving to PoW. The long-anticipated Merge upgrade is scheduled to take place in about a week, from September 15th to 20th.