The main cryptocurrency needs to improve the technological base to improve energy efficiency, says the co-founder of the largest altcoin by capitalization(Vitalik Buterin).
Ethereum co-founder Vitalik Buterin admitted in an interview with CNN that bitcoin could give way to the largest altcoin in terms of capitalization. According to Buterin, the main cryptocurrency needs to improve its technological base to improve energy efficiency. The developer also recalled the imminent transition of Ethereum to the Proof-of-Stake (PoS) consensus, which will reduce electricity consumption and transaction fees on the network.
The crypto crash of the past few days has shocked investors around the world.
Vitalik Buterin isn't among them — even though the meltdown wiped out a huge chunk of his personal wealth. https://t.co/TkPlysfuNo pic.twitter.com/yuxxsPrsLB
— CNN (@CNN) May 20, 2021
Earlier, Tesla CEO Elon Musk criticized bitcoin for its low energy efficiency and environmental friendliness. For the same reason, his company temporarily refused to sell electric vehicles for cryptocurrency. Musk also called the insane level of electricity consumption by bitcoin.
Ethereum’s transition to the Proof-of-Stake consensus will take place as part of the blockchain update to version 2.0. The essence of PoS is that the operation of the network is ensured by the owners of cryptocurrency, not miners, so the algorithm does not require large computing power. For maintenance of the network, the owners of tokens receive a reward. This process is called staking.