Jack Dorsey Claims Proof-of-stake (POS) Less Secure and More Centralized

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Jack Dorsey, the CEO of Twitter and Square Investment is a well-known Bitcoin proponent, and he has made his stance clear on the Bitcoin network’s environmental impact debate claiming the top cryptocurrency is environmentally friendly as it promotes sustainability with the use of clean green energy. The Bitcoin network energy consumption debate also led to many call out the use of Proof-of-work(PoW) mining consensus that to many outsiders doesn’t give any output for the high amount of electricity consumes apart from solving computational puzzles. Many have also advocated for the use of Proof-of-Stake (PoS) as it apparently consumes 90% less energy.

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Dorsey claimed even though PoS comparatively uses less energy it is highly centralized and offers less security when compared to PoW. While many claim that PoW doesn’t have any visible output, they often forget Bitcoin network’s security comes from miners looking to find the next block.

less security, more centralization

— jack (@jack) May 20, 2021

In a PoW mining consensus, any miner with enough computational power can fight against thousands of others to mine the next block that makes the Bitcoin network truly decentralized and also make it more immune to 51% attack. On the other hand, PoS based blockchain networks delegate the miner of the next block based on their network activity.

Musk Reignited the Bitcoin Energy Consumption FUD, Dorsey & Saylor Debunks it

Elon Musk reignited the long-debunked Bitcoin network’s energy consumption Fud after he announced on May 12 that Tesla would no longer accept Bitcoin payment owing to environmental concerns. He claimed that the company is worried about the impact of high energy consumption of the BTC network only forgetting to add that a majority of the energy comes from clean green sources, something he had acknowledged only a few weeks before discontinuing BTC payment for Tesla cars. This made many believe that he was either trolling or just doing it to keep its government subsidies secure.

Along with Dorsey backing Bitcoin and debunking why PoW cannot be replaced, Michael Saylor, the MicroStrategy CEO who was also credited for convincing Elon Musk and Tesla for their $1.5 billion Bitcoin purchase has debunked these claims many times since it all began.

If you would like to discuss the topic of bitcoin energy usage I would be happy to schedule an interview. Bitcoin is becoming exponentially more energy efficient due to mining hardware advances and the halving protocol.

— Michael Saylor (@michael_saylor) May 20, 2021

About Author

An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.