Bitcoin’s Proof Of Work Is Well Worth Its Fees
While centralized exchanges might think they want to promote proof-of-stake blockchain projects, they misunderstand the value of Bitcoin’s proof-of-work model.Recently, in an apparent response to a largely-flawed critique of stablecoins from the Open Markets Institute, cryptocurrency exchange FTX clarified its position on transaction fees for withdrawals. Its blog post was striking in that it appeared to associate proof-of-work (PoW) blockchains with high fees (which users are partly responsible for upon withdrawal) and proof-of-stake (PoS) blockchains with low fees. The conclusion: FTX....
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It is evident that proof-of-work is a pure representation of free-market forces as opposed to the control of proof-of-stake.
The ECON committee voted against a provision that would limit Proof-of-Work mining in the EU, passing an alternative rule.
The proof is in the pudding when it comes to Bitcoin’s proof-of-work mechanism versus a proof-of-stake consensus mechanism debate.
Ethereum’s switch to proof-of-stake is scheduled for mid-September. What are the possible risks? How does it work compared to Bitcoin’s proof-of-work consensus?
26 days ago, Ethereum transitioned from a proof-of-work (PoW) network to a proof-of-stake (PoS) blockchain and after the change, the network’s fees remained low. This week, however, Ethereum’s gas fees have increased as data from October 10 shows the average fee tapped a high of $4.75 per transaction.
Ethereum’s Average Gas Fees Jump Over 80% in 3 Days
Ethereum’s gas fees have ticked upwards, jumping 84% higher from $2.58 per transaction on October 8, to $4.75 per transfer on October 10. Ethereum fees have not breached $4 since August 11, 2022, or....