Buterin worries about Bitcoin’s security
Vitalik Buterin, the creator of Ethereum (ETH), has raised worry about the long-term viability of Bitcoin’s (BTC) security.
In an email conversation conducted with Bloomberg journalist Noah Smith and published on September 2, Buterin detailed two reasons for his future security concerns about Bitcoin.
Buterin is afraid that the fees alone will not provide sufficient motivation for miners to protect the network, which he believes has the potential to become a multitrillion-dollar system.
It is vital to remember that only after all Bitcoin has been mined will miners that confirm transactions or blocks be entitled to earn transaction fees as rewards. Buterin thinks that it is very implausible that the Bitcoin network would be able to generate the requisite number of transaction fees to keep the system operational.
“First, in the long run, Bitcoin security will depend only on fees, and Bitcoin is not achieving the amount of fee income necessary to safeguard what may be a multitrillion-dollar system. Buterin said that Bitcoin transaction costs are around $300,000 per day and have not increased much over the last five years.
Buterin’s second concern
Second, Buterin asserts that the Proof-of-Work (PoW) consensus procedure contains a flaw that might endanger the data security of users. Buterin asserts that proof-of-work provides far less security per transaction fee dollar than proof-of-stake (PoS).
The founder of Ethereum estimates that in a hypothetical future with about $5 trillion worth of Bitcoin, just $5 billion worth of Bitcoin would be required to launch a successful attack on the system.
According to Buterin, the situation is rendered even more hazardous by the unwillingness of maximalists and miners to even consider transitioning to PoS.