There are absolutely no doubts on the matter that consensus mechanisms play a major role in the blockchain security. Although many scientists have pointed flaws in the PoS consensus mechanism in a way that it does not bring complete decentralization and security to blockchain, on the other hand, many researchers have spoken and wrote research papers against PoW mechanism.
Stan Kladko, the co-founder of Skale Labs, talked to BlockPublisher and gave his views on the two mechanisms, he said;
“Bitcoin is proof-of-work, Ethereum is proof-of-work and people are thinking about proof-of-stake networks, that looks much faster but they do not have so much credibility yet as compared to proof-of-work. Bitcoin is more than 10 years old and has not been compromised, so proof of work is perceived by many as much more secure because there is so much history as compared to proof-of-stake like in EOS, that is relatively new”.
Stan further explained how he believes that the two mechanisms can coexist and said;
“People are still trying to understand how to make them secure and they will make them secure at some time but I think what will happen is that proof-of-work systems are going to survive but they will be very slow and will be used for storing large amount of data like the title of a house. I do not believe that one would kill the other, both systems will coexist and proof-of-work won’t be used much but to store extra large amount of money, like tens of thousands of dollars probably and there will be bitcoins and proof-of-stake networks will be much faster and people will be able to play games on”.
“We have lots of interest for games like ‘how to play games and how store all of gaming items like swords and whatever you have in the game. Proof-of-work works differently but it is definitely not going to go away because it is very secure and it will be like Swiss banks, with a rich history and very reliable. In the next 10 or 20 years, I think proof-of-work will still be there but proof-of-stake will be much faster”.
Talking about how valuable bitcoin will become in the future, Stan stated;
“Bitcoin is a very well known brand, it’s very hard like to destroy a brand and it is enormously difficult to destroy the brand. I think Bitcoin is the brand number one and it will stay, bitcoin will be used as gold to store value and it is perfect for this case because the acquisition fee for bitcoin is like 50 cents and people will be storing like tens of thousands and millions and billions of dollars. Bitcoin will be stored in value with the proof-of-work and Ethereum will be more like a foundation of all other proof-of-stake networks. So Ethereum mainnet will be where all these smart contracts will live”.
“On our network, there are nodes registered on the Ethereum mainnet, so we’re using Ethereum main network to provide registration and management of our nodes and Ethereum is going to be like foundation for everything. I think this one going to happen as bitcoin is proof-of-work and it has no intention to move to proof-of-stake and I do not believe that in the foreseeable future, anyone will be able to overcome Bitcoin in terms of market capitalization. Currently Ethereum is like 6 times less and it will be more like foundation for smart contracts and there are different types of utility tokens like our coin or layer two. If we look in to the future, bitcoin and Ethereum will survive, there will be lots of utility networks and their competitors. I think many of them will not survive because many of them do not really have a purpose, I don’t really believe anyone will be overcoming bitcoin or Ethereum”.