- The environmental factor of bitcoin is something that many people take into account as they go about their business.
- As this goes on, proponents of the delegated proof-of-stake consent this algorithm has come forward.
The environmental factor of bitcoin is something that many people take into account as they go about their business. Over the past year particularly, we have seen the environment taken into consideration quite heavily in every aspect of life, not just in crypto. But as this goes on, proponents of the delegated proof-of-stake consensus algorithm has come forward to explain why being so ‘power-hungry’ is a good thing. Many cryptocurrencies like Tezos and Cardano have adopted a delegated proof-of-stake. For those that don’t know, the latter - otherwise known as DPoS - is a mechanism that is designed to facilitate a higher degree of decentralisation on a network with a higher throughput in transactions. This is why it’s so attractive to the aforementioned digital assets.
However, researchers have noted that cryptocurrency platforms like Binance, aren’t all that massively in support of this. According to the latest report from Binance, even though DPoS gives way for a higher network throughput, it comes at the cost of decentralisation due to the institutional reputation.
The report goes on to specifically highlight the EOS cryptocurrency and pointed out how issues on the network are becoming ever increased with more surfacing problems. This includes a low voter turnout and the transparency issue - not to mention centralisation.
As it says in the report:
“Even though this particular problem of optimizing the resource utilisation of the EOS network was overcome easily by stakeholder-driven innovation, other problems have turned out to be more persistent. In particular, one concern has consistently accompanied EOS from the initial ICO to the current state - the fear that EOS may be too centralised, as “too few people own too many tokens” (WeissCrypto, 2019).”
It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!