Ripple co-founder Chris Larsen certainly thinks so. In a blogpost, Larsen detailed about the shortcomings of the proof of work mechanism. Bitcoin is the market leader but the high transaction costs as well as the energy costs may prove to be a hindrance in its way of maintaining its rank which is why the co-founder suggests it is high time Bitcoin shift from a proof of work mechanism to a proof of stake mechanism.
Larsen furthered that newer cryptocurrencies are moving away from the energy-intensive proof of work mechanism as well as older cryptocurrencies. Ethereum, the queen of the market, in its much-anticipated eth2.0 upgrade has also designed a move from proof of work to proof of stake. Per the co-founder, altcoins utilizing proof of stake mechanism now comprise 43% of the market – including Ethereum. But where miners and other stakeholders are vowing to utilize green sources of energy, there needs to be renewed efforts to move the crypto industry towards sustainable energy or sustainable mechanisms.
Ripple Labs has not been a fan of Bitcoin because of its increasing carbon footprint. Brad Garlinghouse, CEO of Ripple Labs, have also been actively speaking out against the environmental costs of cryptocurrency mining – especially Bitcoin since it is done at such a massive scale. Garlinghouse had stated that one transaction on the Bitcoin block chain is equal to the environmental impact of 75 gallons of gasoline burned.
As the cryptocurrency industry moves towards mass-scale adoption, the environmental impact of mining cannot be ignored. With the proof of work mechanism more energy intensive than the proof of stake, a shift to the more efficient technology will become imminent.