- September 5, 2023
- SmartLedger Spotlight
In recent times, the proof of work (PoW) consensus mechanism has come under criticism for its energy inefficiency as proof of stake (PoS) has become the favored model. However, according to SmartLedger’s Greg Ward, PoW remains the most secure consensus model and the BSV blockchain is proving to the world that it works.
Ward was at the London Blockchain Conference where he introduced the launch of the Web3 energy index, a data portal that offers insight into the energy efficiency of various blockchain networks. It allows users, especially enterprises, to assess the output about the raw energy input; a more accurate measure of how efficiently a network utilizes energy.
The index is important now as we move into the world of Web3, Ward told CoinGeek Backstage reporter Jon Southurst on the sidelines of the event.
“Businesses want to know what their Web3 energy footprint is going to be. We’re providing that using some new formulas that take transaction throughput into consideration,” he stated.
PoS is becoming increasingly popular because most people don’t understand the original Bitcoin protocol as envisioned by Satoshi Nakamoto. Once they begin to consider aspects such as unbounded blocks, “it changes the entire narrative.”
While PoS has become popular, especially since the Ethereum migration, Ward stated that proof of work is still the most secure consensus mechanism.
He believes it’s not about how much energy you consume but about what you do with it. The amount of energy that goes toward processing a single 1 MB block in BTC can process a 4 GB BSV block.
As proof that it’s about what you do with energy and not how much you consume, Ward pointed to the airline industry which accounts for 8% of global oil consumption. However, no government has moved to ban or limit air travel as the value it delivers exceeds the energy consumed.
Similarly, once Bitcoin does more than just value transfer, its energy consumption will no longer be the focus.
The BSV blockchain offers an unbounded amount of opportunities for settlement of markets, micropayments and the business models they unlock, music and media management and more.
“When you have an unbounded amount of possibilities to utilize secure timestamped data, then you also have the output becoming of more enormous value for people,” he concluded.
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