Charles Hoskinson – CEO of Input Output Global (IOG) and co-founder of Cardano – delivered a warning to the Bitcoin community on Thursday.
According to the White House’s latest report, bureaucrats are recommending a potential Bitcoin mining ban to combat excess energy use. As such, Hoskinson suggested that Bitcoin transition to a new consensus algorithm to stay within U.S. borders.
Climate and Energy Implications of Crypto-Assets in the United States https://t.co/SpHAyvnOwu
— Charles Hoskinson (@IOHK_Charles) September 8, 2022
- The CEO examined page 7 of the White House’s report, titled “Climate and Energy Implications of Crypto-Assets in the United States.”
- The page includes a recommendation that the administration “minimize GHG emissions [and] environmental justice impacts from crypto assets.” For one, it suggests setting environmental performance standards for “the effective design development, and use of responsible crypto asset technologies.”
“The EPA and the DOE are going to start talking to crypto companies to basically tell them to change the way their cryptocurrencies work,” said Hoskinson, interpreting the line.
- The report then suggested that Congress could establish legislation to “limit or eliminate the use of high energy intensity consensus mechanisms for crypto asset mining,” should environmental standards prove ineffective.
- “In other words, Bitcoin should be banned,” concluded Hoskinson. The CEO argued that the United States government frequently takes such action, soft banning certain industries with overburdensome regulation from bureaucrats.
- Hoskinson said that he anticipated such action, and had already developed a new consensus mechanism in response. This mechanism is called “proof of useful work,” which helps proof of work chains use energy more efficiently.
“Then, your consensus mechanism does more than just secure cryptocurrency,” he explained. “It also provides a large distributed computer for hire.”
- The developer specifically recommended that Bitcoiners consider implementing Ofelimous, a proof of useful work protocol created by Cardano. This, he posits, would let Bitcoin miners be held to the same legal standards as large data centers.
- Nevertheless, Hoskinson was doubtful that this would actually happen given the “religion” of Bitcoin maximalism. He also stood by his position that proof of stake is a “vastly superior” consensus mechanism to proof of work.