Introducing BitcoinPoS: A Greener, Scalable Bitcoin
It is with great excitement that I introduce you to Bitcoin Proof of Stake (BPS): A Decentralized, Secure, Fast, Bitcoin Proof of Stake. This coin is the next generation of Bitcoin technology, offering the same benefits of the original Bitcoin and Satoshi’s vision into a reimagined package.
Bitcoin has long been seen by its supporters as a solution for a broken financial system. With trust in banks and financial institutions at an all time low, the limited supply and peer-to-peer nature of Bitcoin has become increasingly attractive. Despite this, the “mass adoption” of cryptocurrencies that has been eagerly anticipated by diehards has not materialized. This is most likely due to a few fatal flaws in Bitcoin’s design – namely: scalability and waste.
The original Bitcoin has a block time of 10 minutes, and each block can only store a maximum of 1 MB. This means that the processing power of the Bitcoin blockchain is extremely limited, and the network frequently gets backed up. Just recently, decrypt reported that the Bitcoin mempool was backed up with 56MB of unconfirmed transactions – meaning it could take over nine hours for a transaction to be confirmed by the blockchain. Such wait times are unacceptable, and make “mass adoption” – a term used to describe Bitcoin’s use in general commerce by a majority of people – impossible. The typical TPS (transactions per second) that Bitcoin can support is commonly cited as 7. For comparison, VISA’s centralized data centers can support over 20,000 TPS.
While Bitcoin certainly has its place as the founder of decentralized, peer-to-peer, blockchain based transactions, its technical limits make it obsolete in an increasingly digitized world.
But Bitcoin is just as wasteful as it is slow. The original Bitcoin utilizes the POW (Proof of Work) consensus protocol. In this protocol, “miners” expend enormous amounts of electricity in a competition to find the next block in the chain, and receive the block reward. As of May 9, 2020, The Bitcoin Energy Consumption Index reported that the sum of electricity used by all miners was on pace to exceed 58.99 TWh of electricity in 2020. That’s 58.99 trillion watt hours.
To get a grasp on how much electricity that is, it is more than the usage of many small countries. The carbon footprint of such usage exceeds 28Mt (28 million metric tons). And while Bitcoin is the largest and most wasteful PoW network, it is not alone. Others such as Ethereum and Litecoin are extremely wasteful as well, only increasing the global impact of these emissions.
The competition amongst miners to have the highest hash power (and thus the biggest share of the block reward) has created an “arms-race” of sorts. New miners with higher mining power are continuously developed, and so grows the electricity usage of the network. As such, to maximize mining profits, crypto mines have become increasingly centralized in areas with cheap electricity – namely, China. As of December 2019, 54% of the network hash power was centralized in the Sichuan province in China. This centralization makes the Bitcoin network vulnerable to geopolitical events in the region.
Creating a new Bitcoin with Proof of Stake technology at its core solves the many issues described above. Bitcoin Proof of Stake contains the entirety of the original Bitcoin codebase, and brings along many of its core features including: Segwit transactions, block size, and max supply of 21,000,000. Along with Bitcoin developments, all new features and bug fixes implemented on the Bitcoin development tree will be kept in sync with BitcoinPoS.
Solving the Bitcoin throughput problem, BitcoinPoS will have a block time of 3 minutes – about 3.3 times faster than that of the original Bitcoin. This also will create faster transaction times, and a much higher TPS.
BitcoinPoS will utilize a newer version of PoS technology designed to bring more equity to users. Called MPoS (Mutualized Proof of Stake), every staker will get 10% of the block reward in the minted block, and the remaining 90% will be split evenly in the 9 blocks after the stake has matured. Coin maturity occurs after 500 blocks. Lastly, this utilization of PoS technology will eliminate 99% of the electricity usage and wastefulness of the original Bitcoin protocol. As stated in the whitepaper, “the BitcoinPoS team is committed to finding better ways to do blockchain, beginning with making Bitcoin green.”
For more information on BitcoinPoS, visit the website at: https://www.bitcoinpos.net/
Follow us on all our social media channels to keep up to date on all things on BitcoinPoS – BPS!
Follow us on: