The vice Chairman at European Securities and Markets Authority (ESMA) suggested bringing a ban on Proof-of-Work based crypto Mining operations to save energy.
Right now Bitcoin and Ethereum are working on a traditional proof-of-work Consensus to validate all transactions with full of decentralized mechanisms. While the majority of the latest crypto blockchain networks are operating on Proof-of-stake based mechanisms, which are much more efficient than Proof-of-work based blockchain networks. Day by day, these Proof-of-work based crypto assets are getting threatened because of high energy consumption, however, there is a community of Bitcoin supporters, who don’t think the Bitcoin network is consuming a high amount of power/energy.
Recently the Financial Times published a report on the Bitcoin mining ban proposal of the European Securities and Markets Authority (ESMA).
Erik Thedéen, Vice-chair at ESMA, suggested the regulators bring a ban on Proof-of-work based blockchain networks over Proof-of-stake based networks.
Erik noted that Bitcoin mining is going to be a very big issue in his native country, Sweden. He joined ESMA recently in the last month of 2021.
Erik told to Financial Times:
“The solution is to ban proof of work…(.)…Proof of stake has a significantly lower energy profile.”
Ethereum moving toward a solution
Right now Ethereum and Bitcoin are the two top trusted blockchain networks, which are in use at the next level. However, Bitcoin is getting worldwide support but Ethereum is not.
Right now, Bitcoin is in full support by the Bitcoin community but its official creator/s is not available. But Ethereum project founders are publicly known and they are planning to shift Ethereum from Proof-of-work to Proof-of-stake Consensus, to fight against the increasing voice against high consumption of energy by the Ethereum network.
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