Solana (SOL) co-founder Anatoly Yakovenko claims that Bitcoin (BTC) will lose all its users to other crypto projects unless it moves to a proof-of-stake mechanism.
Yakovenko, founder of smart contract platform Solana, said in a new interview with CNBC host Kate Rooney that proof-of-work mining systems will be dysfunctional in the future. He claimed that if Bitcoin does not switch to the new system, big losses may occur.
“I think most of the networks people use will eventually become proof-of-stake. That's probably the most controversial thing you'll have me say: I bet if Bitcoin doesn't switch to proof-of-stake, no one will use it.”
Yakovenko says that engineering logistics and energy efficiency will be the biggest factors in determining what kind of systems future Blockchain users will prefer.
According to the manager, installing a proof-of-stake system is more efficient, providing the same level of engineering security but using much less energy. Yakovenko says that BTC is better suited to be a store of value rather than a Layer-1 network that can be developed, and he is not sure that it can even achieve this goal.
“I think Bitcoin's philosophy and goals are all about storing value, and that requires perhaps the simplest implementation you can create. Maybe this will work for now, but we'll see what happens in 10 years.”
What is Proof of Stake?
Emerging as an alternative to Bitcoin's Proof of Work protocol, Proof of Stake is a protocol that considers digital asset ownership rather than a system based on computational power. The PoS protocol, presented in an article published by blockchain developers Sunny King and Scott Nadal in 2012, focuses on eliminating the high energy consumption and some other problems required for Bitcoin mining. Peercoin was the first cryptocurrency to use the PoS protocol.
The Proof of Work protocol used in the Bitcoin network is a system where miners, who hold most of the processing power, have more say in the network and therefore earn more returns. Bitcoin mining requires high energy consumption, but the Proof of Stake protocol does not allocate network power based on processor power. In PoS, the generation of the next block can be handled by operators who execute several combinations simultaneously.