In a recent conversation at the 2023 Bitcoin Builders conference, Stanford University professor David Tsè revealed his research team’s findings on the synergy between Bitcoin and proof-of-stake (PoS) blockchains, addressing the limitations of PoS and implications for energy consumption.
Tsè’s research lab at Stanford University specializes in blockchain consensus protocols, starting with Bitcoin’s proof-of-work (PoW) protocol. During their in-depth exploration of Bitcoin and PoS, they discovered a “natural synergy” between the two, where an extra layer of protocol sharing security between Bitcoin and PoS can significantly boost overall security strength.
However, PoS blockchains have two main limitations: attracting enough stakers to start a new blockchain and their “short range” security. Contrarily, Bitcoin displays stronger “long-range” security, making it the perfect complement to PoS. Tsè envisions a world in which developers can tap into Bitcoin’s security features to build distributed ledger applications effortlessly, allowing them to concentrate on the core purpose of creating a blockchain network.
Despite energy consumption being a major concern with building on Bitcoin and PoW systems, Tsè argues that it is vital to understand the “why” behind the energy usage. Adequate energy consumption provides security, which in turn offers value. He stresses that their current focus should be on making higher value use of the consumed energy, with security considered one of Bitcoin’s most valuable assets.
Furthermore, Tsè highlighted projects like Bitcoin Ordinals, which leverages Bitcoin’s security. The value of building on Bitcoin’s secure foundation is evident in the growing interest in Bitcoin nonfungible tokens (NFTs). While these Bitcoin NFTs have generated both hype and skepticism, their rapid expansion cannot be ignored. Binance’s NFT marketplace added Bitcoin NFT offerings, and inscriptions for Bitcoin Ordinals have nearly doubled in just over a week.
In conclusion, the potential for Bitcoin and PoS blockchains to complement each other has fascinating implications for the future of cryptocurrency and blockchain technology. As developers continue to explore ways to harness the strengths of both systems, innovative applications are bound to emerge that will capitalize on improved security and more focused progress in creating blockchain networks.
Source: Cointelegraph
