“Ethereum is one of the hardest-hitting competitor’s when it comes to an altcoin that could compete against Bitcoin”.
Vitalik Buterin, a co-founder of Ethereum, stated that after the Proof of Stake (PoS) consensus algorithm is implemented into Ethereum, it will be more secure than Bitcoin.
Buterin stated this opinion during Devcon 5: An Ethereum developers conference that happened in Osaka from October 8th to October 11th. He pointed out, pragmatically enough, that the sheer cost of attack would make Ethereum a safer network as well. It works on the idea of deterring lower-tier criminals from trying their hand at it due to the computational power needed.
As is considered mandatory, Buterin started his presentation by paying homage to the enigmatic Satoshi Nakamoto: Creator of bitcoin and the father of cryptocurrencies as a whole. He stated that Nakamoto created crypto-economics as a way to encourage individuals to maintain the Bitcoin network.
The way that blockchain is designed is that you would need an incredible amount of resources to compromise the network effectively, and the cost only rises as the system expands.
Buterin makes an intriguing claim, however. He asks if every aggressive actor against blockchain is into it for the monetary gain, or if there are some people that “just want to watch the world burn.” It’s an interesting argument, implying that there are malicious actors out there that would be willing to waste excessive amounts of resources to see a blockchain collapse. He stated that it could be hacker groups, governments, anyone.
Ethereum’s PoS Based Security
When Ethereum implements PoS, users can lock an amount of Ether into a smart contract. This smart contract will allow them to validate new blocks, instead of relying on the energy consumption of heavy-duty computer power. If this staker misbehaves, their stake can be slashed as recompense.
The more Ether staked, the better chances you have of validating a block. This is similar to a hashrate for a miner, where the more computational power he has, the better chance he has of validating a block and, thus, earning money.
In Buterin’s envisioned PoS system, there is an active community regulation system. This can be done via challenging a validator’s new block when it’s created. The new block can be verified by investigating it for malicious code.
Whether or not Ethereum can stand up to Buterin’s claim remains to be seen, but this could very well be the next step in cryptocurrencies.