The ongoing discussion surrounding PoW and PoS primarily revolves around their environmental impact. In a noteworthy development, Ethereum made a groundbreaking transition to PoS during ‘The Merge’ last year, bringing with it remarkable news – the network now consumes a staggering 99.99% less energy, according to the Crypto Carbon Ratings Institute.
Renowned Dogecoin core developer, Mishaboar, has taken a firm stand against the possibility of transitioning to a Proof-of-Stake (PoS) system. In a captivating online discussion on X (formerly Twitter) on Aug. 20, Mishaboar voiced concerns about the potential repercussions for Dogecoin’s network, amidst a whirlwind of rumors and suspicions.
At present, Dogecoin operates on the Proof-of-Work (PoW) consensus algorithm, similar to Bitcoin. This approach relies on mining, where specialized computers solve intricate puzzles to validate the network and add new transaction blocks to the chain.
Influential figures like Vitalik Buterin have advocated for Dogecoin’s departure from the energy-intensive PoW in favor of PoS. However, Mishaboar made it clear that he would bid farewell to Dogecoin and seek out another crypto network with a PoW consensus if such a switch were to occur.
Mishaboar delved deeper into the potential implications of a PoS conversion, shedding light on concerns about preserving the old PoW-based DOGE through blockchain forks. He underlined the power imbalance that could arise from a shift to PoS, as exchanges hold a significant portion of the token’s supply, potentially diminishing community governance and involvement.
Furthermore, Mishaboar highlighted the heightened regulatory challenges that Dogecoin may encounter if PoS is implemented. He also drew attention to the underwhelming performance and excessive centralization experienced by cryptocurrencies that have already undergone a transition to PoS, which contradicts the core principles of the cryptocurrency realm.
While there exist supporters who advocate for Dogecoin’s migration to PoS, citing advantages such as energy efficiency and scalability, Mishaboar remains at odds. He argues that a move away from PoW does not align with Dogecoin’s future objectives. Instead, Mishaboar proposes integrating payment channels and providers to achieve faster transactions while preserving the current consensus mechanism.