Bitcoin
BTC$23 205.94

-1.05%

Ethereum
ETH$1 652.57

-1.54%

Tether
USDT$1.000189

0.01%

Binance Coin
BNB$328.97

-0.66%

USD Coin
USDC$0.999824

-0.02%

XRP
XRP$0.403964

-1.85%

Ripple chair's pay-off plan to convince BTC miners to adopt Proof of Stake


10 Dec 2021

#XRP

Billionaire Chris Larsen said that miners should view the move away from PoW as “a net positive for their longevity.” Executive Chairman and Co-founder of Ripple Chris Larsen has unveiled his plan for Bitcoin miners to move away from Proof of Work (PoW), saying they should view it as “a net positive for their longevity.” He argues it could provide a major boost to the share prices of listed mining firms “as any new code proposal would almost certainly have to include lucrative incentives to gain their support.” PoW is the consensus algorithm that secures Bitcoin (BTC) transactions on the blockchain. While the Bitcoin network is the most secure and reliable, the amount of energy BTC mining requires causes endless debate in the crypto space.

In a Nov. 10 blog post Larsen wrote: “The emerging solution among climate experts is that Bitcoin’s code needs to be changed to a low energy consensus algorithm like those used by nearly all other major crypto protocols. For example, while Bitcoin uses the energy of approximately 12 million US homes per year, other methods could drive that to fewer than 100 US homes.”

Ethereum is already halfway through the switch to Proof of Stake. While Larsen said this would make Bitcoin an “outlier” he concedes that any similar change would be opposed by most Bitcoin mining companies. However he’s proposed a solution to fairly distribute the “900 Bitcoin per day” from block rewards and the “approximately 2.1 million additional Bitcoin are to be distributed through the year 2140.” He suggests that the “least disruptive” solution to BTC’s energy problem is to “take a snapshot of the current hash rate of existing miners and then reward miners on a pro-rata hash power basis.”

“Existing miners would simply have rights to future Bitcoin rewards without the need to expend additional energy or make additional investments in mining rigs.”

The billionaire businessman explained that his plan would give miners “additional economic benefit” and “lucrative gains” because they would gain the same revenue with less operating costs going towards their power bills. 

He suggested the “future rewards [...] could be held and tokenized,” concluding that “while the process to enact these plans with consensus across the Bitcoin community will take time, the benefits far outweigh the risks.” “These assets could be extremely lucrative to existing miners, especially as Bitcoin goes from its current climate disaster status to a truly green financial technology of the future.”

Larsen specifically referenced several U.S. mining stocks including Stronghold Digital Mining (SDIG), Hive Blockchain Technologies (HIVE), Canaan (CAN), Riot Blockchain (RIOT), BIT Mining (BTCM), Bit Digital (BTBT), Bitfarms (BITF), and Marathon Digital Mining (MARA). Needless to say, the proposals are unlikely to be welcomed by Bitcoiners — or miners who have ambitious plans to increase their share of the hashrate and would miss out on additional revenue through this plan. And judging by the controversy over changing the blocksize, if the proposal did gain some support it would almost certainly lead to a PoW fork.


Related

XRP price could rally by 50% based off comments from a former SEC director
XRP price could rally by 50% based off comments from a former SEC director
RoboForex adds 7 new cryptocurrencies
RoboForex adds 7 new cryptocurrencies
XRP mega whales scoop up over $700M in second-biggest accumulation spree in history
XRP mega whales scoop up over $700M in second-biggest accumulation spree in history
XRP gains 30% after Ripple gets permission to explain fair notice defense vs. SEC
XRP gains 30% after Ripple gets permission to explain fair notice defense vs. SEC
XRP price will fall to new lows vs. Bitcoin if this famous chart pattern plays out
XRP price will fall to new lows vs. Bitcoin if this famous chart pattern plays out
XRP below $1, futures open interest down by 75%
XRP below $1, futures open interest down by 75%
SEC loses a battle to win the war? Ripple dissociates from pumping XRP
SEC loses a battle to win the war? Ripple dissociates from pumping XRP
420M$ in leveraged long traders liquidated after XRP rallies to $1.96
420M$ in leveraged long traders liquidated after XRP rallies to $1.96
XRP price soars to new highs after recent legal victories
XRP price soars to new highs after recent legal victories

Top Cryptocurrencies with Price Predictions

# Crypto Prediction Accuracy CVIX Price 24h 7d Market Cap 7d price change
1 Bitcoin (BTC) BTC Bitcoin predictions 62.4% 76 $23 205.94 -1.05% -1.38% $447 463 293 507 BTC 7 days price change
2 Ethereum (ETH) ETH Ethereum predictions 69.2% 57 $1 652.57 -1.54% 2.42% $202 231 671 937 ETH 7 days price change
3 Tether (USDT) USDT Tether predictions 91.2% 1 $1.000189 0.01% 0% $68 077 488 884 USDT 7 days price change
4 Binance Coin (BNB) BNB Binance Coin predictions 79.6% 38 $328.97 -0.66% 3.37% $51 943 779 281 BNB 7 days price change
5 USD Coin (USDC) USDC USD Coin predictions 93.2% 1 $0.999824 -0.02% -0.03% $42 003 176 490 USDC 7 days price change
6 XRP (XRP) XRP XRP predictions 74.8% 42 $0.403964 -1.85% -2.11% $20 521 022 743 XRP 7 days price change
7 Binance USD (BUSD) BUSD Binance USD predictions 91.6% 1 $0.999683 -0.09% -0.09% $16 253 121 649 BUSD 7 days price change
8 Cardano (ADA) ADA Cardano predictions 69.2% 64 $0.393347 -2.50% 1.09% $13 613 416 758 ADA 7 days price change
9 Dogecoin (DOGE) DOGE Dogecoin predictions 74.8% 51 $0.092763 -2.01% 2.82% $12 306 963 608 DOGE 7 days price change
10 Polygon (MATIC) MATIC Polygon predictions 68% 67 $1.22 -1.89% 3.32% $10 667 289 399 MATIC 7 days price change
11 Lido stETH (STETH) STETH Lido stETH predictions 92.4% 1 $2 941.39 -0.40% -3.32% $10 258 752 564 STETH 7 days price change
12 Solana (SOL) SOL Solana predictions 56.8% 86 $23.71 -4.22% -3.55% $8 833 784 660 SOL 7 days price change
13 SHIBA INU (SHIB) SHIB SHIBA INU predictions 67.6% 73 $0.000015 2.71% 22.15% $8 061 420 715 SHIB 7 days price change
14 Polkadot (DOT) DOT Polkadot predictions 67.2% 66 $6.69 -3.98% 1.44% $7 717 761 462 DOT 7 days price change
15 HEX (HEX) HEX HEX predictions 70% 60 $0.040894 -16.00% 51.64% $7 091 495 993 HEX 7 days price change

Be the first to receive Cryptocurrency Price Predictions and Forecasts daily

Get cryptocurrency price predictions, forecasts with analysis and news right to your inbox.

© 2015-2023 Crypto-Rating.com

The usage of this website constitutes acceptance of the following legal information. Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website, including information about the cryptocurrencies and bitcoin is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Crypto Rating shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about cryptocurrencies. The entire responsibility for the contents rests with the authors. Reprint of the materials is available only with the permission of the editorial staff.