Andreas Antonopoulos is a known name, He is an advocate and writer of cryptocurrency. He has written several books on blockchain technology and cryptocurrency as well as offering his expertise on the podcast Let’s Talk Bitcoin.
Many novice investors still believe that bitcoin is only based on proof of work(pow) consensus algorithm. Miner validates transactions and as a reward they get bitcoin. During the early years of bitcoin, it was able to mine bitcoin using desktop computers. Soon many joiners started mining which resulted in an increase in the available hash rate in the network.
Desktop soon outlived its utility and GPU then became the favourite mining equipment.ASIC soon caught up and gained prominence as the first choice. Mining for commercial purpose increased as cryptocurrency became popular. There was always an apprehension that if these miners could take control of over majority of computing resources in a network, it could result in the 51 percent attack.
In essence bitcoin is a decentralized currency, however, miners or group of miners have increasingly displayed that they had the power to control given their computational resource. This was making the system little centralized. Antonopoulos said that the chips could not be faster and smaller. He asserted that we are already at an advanced stage of Moore’s Law and there is hardly any possibility of more efficient and faster chips.
Critics proposed that a remodelling of the PoW consensus algorithm would yet again decentralize the network and it will create a level playing field for all miners. Antonopoulos slammed this idea and maintained that institutional miners wouldn’t suffer if this policy was to be invoked.
Antonopoulos maintain that only small miners would face the brunt. The life cycle of an ASIC computer is three to six months and these hardware companies have no dearth of funds. These companies would soon purchase machines that are more efficient and has greater speed. This squares the situation.
We have probably reached the limit of both Moore’s Law and centralization, According to Antonopoulos. He believes going forward centralization era is already ending and bitcoin will live by its promise of decentralization.
Antonopoulos censured how government and administrative bodies far and wide have treated bitcoin and digital money. He joked, “You can remove your nation from Bitcoin yet you can’t get Bitcoin out of your nation.” Tax experts, for example, have forced strict capital additions laws on digital forms of money. Andreas made a carefree poke by saying:
“This progression will make bookkeepers more extravagant than the IRS itself. You know there is an issue when you have to complete a 300 page petitioning for a $35 capital pick up.”
While bitcoin and digital forms of money have been guaranteed to be utilized for tax evasion, Antonopoulos brought up that the issue lies with the general population and not the framework. Customary saving money, for example, has been utilized for reserving money and getting away expenses for a considerable length of time.
He additionally talked about how bitcoin was changing the world featuring its developing impact as a cash. As per Antonopoulos, Bitcoin will change the managing an accounting industry and has a brilliant future with layer two scaling arrangements likewise upcoming. These arrangements will empower Bitcoin’s Blockchain to deal with a significantly higher number of exchanges and genuinely scale.