According to Charles Hoskinson, the CEO of IOHK, Cardano’s PoS is more secure than Bitcoin’s PoW and also more decentralized. In a new video that we talk about in our Cardano latest news, Hoskinson attacked Bitcoin maximalists Tone Vays and Jimmy Song and refuted all their arguments.
Charles Hoskinson, the CEO of IOHK and Cardano inventor, spoke on the subject of decentralization making direct references to the well-known Bitcoin maximalists by assessing the degree of decentralization of Bitcoin and identifying more problems. As Hoskinson described, the ability to mine Bitcoin is dependent on ASICs access since the manufacturers have a huge influence on the distribution. He also identified electricity costs as a huge problem as miners in countries where the electricity is expensive are practically excluded from mining.
In addition, the companies with political influence can obtain cheaper electricity in a country that allows the politicians to exert their influence on the mining Bitcoin ecosystem. The result is an economy of scale where larger players drive out the smaller ones in the ecosystem as Charles mentioned:
“So you have guys like Jimmy [Song] and Tone [Vays] that say Bitcoin is so decentralized. Bitcoin is the best thing in the whole wide world, mining is the only way and the truth. By the way, can you participate. Bitcoin is so decentralized. And you say well, the people who maintain the system they live outside the system, they are consuming a custom resource that’s patented in private, it benefits tremendously from the price of electricity and they got to have a lot of money to be able to play and participate. That doesn’t sound to me like a decentralized system. And over time you get increasingly more federated.”
Tone and Jimmy brought up Cardano's level of decentralization so I made a video about it: https://t.co/JUT5j2N24L
— Charles Hoskinson (@IOHK_Charles) July 17, 2020
Cardano’s PoS (proof of stake), however, requires different resources and in contrast to Bitcoin, it is independent of energy costs. No matter how much the electricity costs are getting higher in different countries, ADA will always have the same value within the ecosystem. Hoskinson pointed out that Cardano doesn’t need access to the privately patented resource because the Proof of Stake is comparable to the one of Bitcoin in the early days, as Hoskinson said:
Then Jimmy’s argument is that it is just a signature, there’s no security. I guess doesn’t understand anything we have done in any of our papers. I would encourage by start reading GKL paper, telling us what is wrong with this model; I would encourage him to read the Ouborus paper and tell us what is wrong with this model. […]”
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