CryptoEducation: The Future of Proof-of-Stake

08.04.2023

The energy consumption of Proof-of-Work (PoW) cryptocurrencies has long drawn criticism.A study by the Cambridge Centre for Alternative Finance revealed that Bitcoin mining contributes to around 0.1% of global CO₂ emissions caused by human activity. This sparked global concern — many countries called for a ban on crypto mining, and China completely outlawed it. In March 2022, the European Parliament even debated a bill proposing a complete ban on PoW-based cryptocurrencies. Though the proposal was rejected, it highlighted growing pressure to regulate or replace PoW. Ethereum's transition set a precedentIn late 2022, Ethereum successfully switched to Proof-of-Stake, cutting its energy usage by nearly 99.95% — or 2,000 times less! This monumental move reignited discussions about whether other major cryptocurrencies should follow. Who’s next?Dogecoin: In late 2021, its developers announced plans to move to PoS. Ethereum co-founder Vitalik Buterin supported the idea and offered assistance. Zcash: The team behind this privacy-focused coin is actively discussing a switch to PoS. Founder Zooko Wilcox believes it will improve security, efficiency, and user governance. But what about Bitcoin?This is where it gets controversial: Bitcoin has no central developer or authority, making changes difficult and slow. Mining pools are unlikely to support PoS, since it would threaten their revenue model. A PoS fork called BitcoinPoS was launched in 2020 — but it never gained traction. PoW vs. PoS: The Debate ContinuesPoW supporters argue that it offers superior security and resilience, especially in a highly decentralized network like Bitcoin. Still, with increasing concern about energy consumption and climate impact, PoS is gaining momentum as a cleaner, scalable, and more sustainable consensus mechanism.