Human Rights Foundation Says There Will Be Pressure For Bitcoin To Use Proof Of Stake Like Ethereum

Dalmas Ngetich

1 year ago

2 mins read

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Alex Gladstein, the Chief Strategy Officer at the Human Rights Foundation, predicts that there will be more pressure for Bitcoin to change its consensus algorithm from proof of work to proof of stake.

Bitcoin Is A Work Of Art?

In a tweet on March 2, while replying to an MIT Technology Review post, the executive praised Satoshi Nakamoto, the founder of Bitcoin, for rolling out a network with great incentives that link the existing monetary system and network security to serve end user self-interest.

The public cry for Bitcoin to “switch to Proof of Stake” (so that it could be controlled) will only heat up in the coming months and years

Grateful to Satoshi for designing Bitcoin with such great incentives that link monetary policy and network security to user self-interest 🙏 https://t.co/coDEHP80CA

— Alex Gladstein 🌋 ⚡ (@gladstein) March 2, 2023

The article Gladstein responds to notes the significant energy savings that Ethereum has made since switching to a proof of stake system.

In this arrangement, Ethereum dumped the need for rigs for nodes where validators must stake coins for a chance to confirm transactions and receive network rewards.

Although Ethereum is now considered “greener,” some argue that the smart contracts platform can be vulnerable to government control.

Gladstein chimed in on this discussion, saying that the Bitcoin network’s dependence on proof-of-work means the platform cannot be controlled in later stages. He seems to criticize blockchains, including Ethereum, which use proof of stake consensus systems.

Instead, Gladstein lauds Bitcoin’s incentivization system that diffuses power to the user and ensures continuous decentralization. This occurs, the executive seems to allude, regardless of the energy demands behind Bitcoin.

Security And Convenience Versus Energy Demand

Bitcoin is a transactional layer designed to move funds trustlessly without relying on a third party. Through a system of nodes distributed across continents, the network can process BTC transactions, enabling the transfer of value.

Bitcoin Price On March| Source: BTCUSDT On Binance, TradingView 2 — Bitcoin Price On March| Source: BTCUSDT On Binance, TradingView

In this system, the absence of a middleman means users can transfer funds any time of the day, more conveniently and without paying high fees than traditional remittance platforms. Transactions are usually confirmed within minutes and settled in wallets under the users’ control.

However, while this architecture provides convenience and diffuses power to end users, node operators must run rigs that meet high energy requirements. These nodes run a proof of work software where special node operators, called miners, compete to validate and include blocks to the blockchain for a reward.

This incentivization architecture continues to push Bitcoin’s energy requirements higher; some environmentalists say this mechanism is unsustainable. Meanwhile, proponents of proof of work say linking the Bitcoin network with electricity, a utility, becomes more secure and reliable.

Feature image from Canva, Chart from TradingView.

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.

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