Since the announcement of its transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS), the Ethereum (ETH) network has been making a lot of noise. Some believe that Fusion is a good idea, because of the performance that PoS will bring to the network. But, for others, PoS is a complex and more planned consensus, especially PoW which is used on the Bitcoin (BTC) network.
Ethereum (ETH) has good reasons to migrate to PoS
On July 19, the Bitcoin for Freedom account posted on Twitter that opting for Proof-of-Stake (PoS) would mean trusting the riches while choosing Proof-of-Work (PoW) means trusting the mathematics. It is true that the use of Proof-of-Stake (PoS) consensus incurs significant costs, because this in particular requires high-end machines. PoS also promotes wealth as users must be prepared to lock their ETH tokens for a long period of time. Moreover, there are chances that they will lose some of their holdings in case of cost cuts.
However, professionals are right to believe that Proof-of-Stake offers many forecasts better performance than Proof-of-Work. For example, at PoW, PoS would be more energy efficient (at 99%). This resulted from the fact that with this protocol, the power is not a determining element to obtain a consensus on the network or to create new blocks. The most important thing here is proof of stake. Because of this, it is difficult to use the PoS protocol with low-end machines.
Otherwise, PoS blockchains are generally resilient and reliable. They are 51% less susceptible to hacker attacks. This is partly because with the PoS protocol, traders are more or less forced to keep their tokens “locked” in order to get more profits from creating new blocks. Thus, Ethereum (ETH) has good reason to want to switch to PoS and leave PoW.
What are the concerns about Proof-of-Stake?
You should know that the fears of professionals about Proof-of-Stake (PoS) are justified. To begin with, this protocol is much more complex than Proof-of-Work (PoW). To be functional, it needs to rely on a plethora of additional rules and systems. These are far from easy to understand, which makes their impact on a network difficult to predict.
According to some analysts, Ethereum (ETH) has changed its transition to PoS several times because it is aware of the complexity of this protocol. After all, with this consensus, a single mistake could result in billions of dollars in losses in a single moment. Indeed, it is likely that Ethereum (ETH) will never really feel ready to move to PoS.
The transition of Ethereum (ETH) from Proof-of-Work (PoW) to Proof-of-Stake (PoS) which is referred to as “The Fusion” should allow the network to be faster. It so happens that currently Ethereum (ETH) can handle 15-45 transactions per second (TPS) while Bitcoin can only handle 4-6 TPS. PoS could handle around 50,000 TPS.
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