Charles Hoskinson, a founder of Cardano, IOG, and one of the inventors of Ethereum, has made a video in which he comments on the White House’s recent suggestions to clamp down on all energy-intensive businesses, including Bitcoin mining.
Hoskinson feels that the newly introduced Cardano protocol Ofelimous may aid Bitcoin’s continued existence as a cryptocurrency. Ofelimous is a proof-of-useful-work protocol designed to decrease the carbon footprint of proof-of-work networks, such as those used by Bitcoin and many other cryptocurrencies.
Ofelimous is a newly established, provably secure proof-of-useful-work protocol that aims to minimize the amount of energy proof-of-work chains need. Proof-of-useful-work, unlike proof-of-work, assures that the computational capacity of miners is used to solve real-world issues.
However, this renders the blockchain less secure, since an attacker might utilize the system to solve simple problems and generate more blocks than miners could with the same resources. Cardano guarantees that Ofelimous can readily resolve this difficulty.
Hoskinson advises Bitcoin miners to use this PoUW technique to reduce their carbon footprint, which is currently similar to that of small nations.
In March of this year, on President Biden’s request, a panel of White House legislators released a study on the excessive energy use of several businesses, including bitcoin mining.
In a summary, the research suggests that certain businesses should be prohibited if they cannot considerably reduce their energy use. Bitcoin sceptics have often raised the problem of the Bitcoin blockchain’s significant carbon footprint. According to recent studies, the amount of energy required by BTC miners (the network uses the PoW consensus process) is equivalent to that of small nations.
As costs for energy supplies continue to rise at a fast rate, the significance of this problem grows. However, the paper suggests that a move to the proof-of-stake algorithm for PoW blockchains will drastically lower their energy consumption.