BitTorrent Creator Advises Ethereum Developers to Not Switch to Proof-of-Stake

Bram Cohen, an American computer programmer and the author or peer-to-peer (P2P) file sharing protocol and software program BitTorrent, has advised Ethereum’s (ETH) developers to not switch to the proof-of-stake (PoS) consensus protocol.

Cohen also suggested that Ethereum’s development team “separate out state transitions from their justifications” and “drop” sharding - as they work on upgrading the Ethereum blockchain network. In response to Cohen’s recommendations, Twitter user “WallStreet 5” (@Street5Wall) asked Blockstack co-founder Muneeb Ali why his platform couldn’t be deployed on Bitcoin SV, “instead of Ethereum.”

Clarifying that Bitcoin SV, a fork of Bitcoin Cash, is “not designed as a general purpose” platform to launch decentralized applications (dApps), Ali explained that Blockstack is “explicitly designed” to facilitate the development of distributed apps.

Responding to Ali’s comments, Craig Steven Wright, the self-proclaimed inventor of Bitcoin, claimed that Bitcoin (as he envisions it) “is a Turing Complete system.” Wright also argued that Bitcoin is capable of functioning as a dApp deployment platform and it has many other use cases.

SegWit Was "More Of A Bug Fix"

Meanwhile, Twitter user “Critical I.” (@critical_infras) asked if separating state transitions is what SegWit (“Segregated Witness”) did for Bitcoin. According to Cohen:

Sort of. SegWit was more of a bug fix than a change to the model. Yeah Satoshi meant for the UTXO (unspent transaction output) model to begin with but messed up that detail mistakenly thinking signing more stuff was better.

Questioning whether it’s a good idea to “drop stated goals” and if Cohen thinks they’re “unobtainable”, Twitter user @CogentConch pointed out that “many people are invested in ETH because of [the] upcoming” proof-of-stake (PoS) upgrade to the Ethereum network. Per the BitTorrent creator, the “current plans” for doing state transitions on Ethereum are “unworkable, or are only workable by letting the thing continue to quickly backslide into centralization.”

"Hard To Explain" To Those Who Don't Have A Technical Background

Acknowledging that state transitions and other implementation details related to Ethereum are “hard to explain without assuming quite a bit of technical background for the reader”, Cohen noted:

The idea is to have 'transactions' in the database sense, so they have clear dependencies and [users] know in advance exactly how much gas they'll need ... Basically every detail of a transaction's execution and the amount of gas it uses should be precisely specified up front and the slightest deviation from that should make it fail.

In October 2018, Cohen had announced his plans to launch a new cryptocurrency (called Chia) based on a “proof of space” consensus protocol - which he claimed was a more eco-friendly version of Bitcoin (BTC).

Buying Bitcoin At All-Time High Was Better Than Keeping Money In Argentinian Bank, Trader Reveals

Josu San Martin, a Mexico City-based Bitcoin “quasi-maximalist”, recently revealed that if the residents of Argentina, a country experiencing a major financial crisis, had purchased Bitcoin (BTC) at the “highest point of the ‘biggest bubble in history’” (in 2017),  they would have still “been better off” than leaving their funds in an Argentinian bank.

Earlier this month, Twitter user Matias (@MatiasTrader) had noted that Bitcoin had reached “an all-time high in Argentinian Pesos (ARS).” This, as the South American nation is suffering from extremely high levels of inflation.

High Levels Of Inflation Does Not Necessarily Mean Bitcoin Will Help?

Interestingly, Twitter user Moises Cassab (@josusanmartin) pointed out that the main argument being made is that the Argentinian Peso is a “terrible store-of-value (SoV).” Moises also appeared to suggest that there was no meaningful relationship between the declining value of Argentina’s national currency and the arguably better performance of Bitcoin, the world’s most dominant cryptocurrency.

Moises remarked: 

Buying Celine Dion 2020 tickets would of outperformed the arg peso. Tell me how Celine Dion tickets are a terrible store of value.

Venezuelans Still Need To Use The Bolivar “To Survive”

According to Josu San Martin:

In a long enough timeline, the Argentinian peso doesn't look that much different from any other Latin American currency.

Indeed, the residents of other nations in the same region such as Venezuela are enduring one of the worst economic crises in their country’s history. However, recent reports which appeared to have suggested that cryptocurrencies were increasingly being used as a hedge against inflation in Venezuela may not be entirely accurate.

Focusing On Basic Necessities

Alejandro Machado, the co-founder of the Open Money Initiative (OMI), a project dedicated to assisting nations with “collapsing monetary systems,” had revealed recently that the citizens of Venezuela have not completely abandoned the Bolivar.

Although Machado acknowledged that bitcoin trading in Venezuela had reached record-level highs, he said that Bitcoin and other cryptocurrencies were “too technical” for most Venezuelans. He also mentioned:

Access to products [in Venezuela] is the number one thing [that people are looking for.] Do I have enough to eat this week or do I need to reinvent the ways that I access food?