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

Published May 21, 2021 | Updated May 21, 2021

In Brief
  • Twitter CEO Jack Dorsey debunks growing FUD against Bitcoin PoW claiming rival mining consensus PoS is more centralized and less secure.
  • Dorsey propagates Bitcoin’s importance in making clean energy usage mainstream.
Cash App Jack Dorsey Bitcoin
Image Courtesy of Reuters/Lucas Jackson

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

  • Twitter CEO Jack Dorsey debunks growing FUD against Bitcoin PoW claiming rival mining consensus PoS is more centralized and less secure.
  • Dorsey propagates Bitcoin’s importance in making clean energy usage mainstream.

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.

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.

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.

 

 

 

Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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.

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Prashant Jha 669 Articles
An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.
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