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Ripple co-founder and XRP creator, Chris Larsen says he has come up with a solution that will significantly reduce Bitcoin’s high energy consumption problem.
According to the entrepreneur, the new strategy will allow Bitcoin to move into a more environmentally friendly consensus algorithm.
Larsen Proposes A Change In Bitcoin’s Network Code
Larsen admitted that it will not be easy to move from the present proof-of-work (PoW) algorithm. But he says that miners should be looking at improving the network by moving to the more efficient proof-of-stake algorithm. According to Larsen, a change in the network’s code is necessary to improve Bitcoin’s overall scalability.
Some experts have noted that big companies are still reluctant to embrace Bitcoin because of the Environmental, Social & Governance (ESG) concerns surrounding Bitcoin. Larsen says its new strategy will address such issues.
Many would think Larsen’s concern should be only on XRP, which has had a shaky year due to its regulatory issues with the US Securities and Exchange Commission (SEC). But the motive behind his strategy to promote Bitcoin is because he thinks that if BTC becomes more popular, it will have a positive influence on other cryptocurrencies, XRP included.
The Strategy Includes The Introduction Of Miner Incentives
Although Larsen’s plan is for Bitcoin to be more popular and higher in price, it could meet strong opposition from BTC miners. However, he added that miners will also be benefiting from the new strategy because it also includes the introduction of new miner incentives.
He noted that miners should be rewarded on a pro-rata hash power basis. This will enable users who maintain the Bitcoin network’s operability to be offered future BTC rewards without spending money on equipment or using more energy, Larsen added.
While Larsen says the changes will come with risks, he believes the benefits far outweigh the risks.
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