The Bitcoin Letters: Proof of Misunderstanding

Proof of Stake is an unviable alternative to Proof of Work, read more about this in the chapter ‘Proof of Misunderstanding’.

Written by

Michael Sprick

Published On

14 Apr 2023

Bryan Daugherty, the Public Policy Director at Bitcoin Association has published his new book The Bitcoin Letters. The book aims to help readers unlock the mysteries surrounding Bitcoin and essential concepts such as sustainability, regulation, and the transformation to Web2 and Web3.

Bitcoin has taken the world by storm, but there are still many things that need to be clarified about the technology. Through thoughtful analysis and engaging writing, readers will gain a deeper understanding of the intricacies of Bitcoin and how it is shaping the future of finance.

Additionally, the book includes three letters written to industry leaders – Elon Musk, NYS Governor Hochul, and SEC Chair Gary Gensler – that provide unique insight into the world of Bitcoin.

Proof of Misunderstanding

The chapter Proof of Misunderstanding addresses the widely held view that proof-of-work does not scale and is unnecessarily energy intensive. The proposed solution Proof of Stake does not solve the problem of energy consumption, as it is simultaneously inefficient and makes significant trade-offs in utility, security and scalability.

Daugherty goes so far as to say that Ethereum’s ledger should no longer even be considered a real blockchain. Rather, it is a distributed ledger network that just mimics the structure and processes of a real blockchain.

Daugherty argues that Proof of Stake more closely resembles an oligarchic system, which centralises power into the hands of wealthy stakeholders and sacrifices security for projected energy savings. He also criticises Ethereum’s gas fees and cites the blockchain trilemma theory as flawed.

He further suggests that PoW is a groundbreaking system with limitless potential and warns against sacrificing innovation and security for the sake of sustainability.

Buy your copy of The Bitcoin Letters now

The Bitcoin Letters is now available in Kindle ($9.99) and paperback ($19.95) formats on Amazon. But for readers who want to experience the full potential of Web3 technology, there’s an even better option. By downloading the ImmutableBooks.com app, you can purchase the eBook by page, chapter, or in its entirety, using a pay-per-consumption model that only charges you for the content you read.

ImmutableBooks.com is user-friendly and secure, powered by the latest blockchain technology to ensure complete privacy and safety for its users. It’s a revolutionary platform that offers unparalleled transparency, security, and immutability in content distribution.

About Bryan Daugherty

Bryan Daugherty is an accomplished digital transformation specialist with over two decades of experience in enterprise-grade technologies. Daugherty serves as the Global Public Policy Director for an educative, non-profit trade association, where he advises policymakers in over 30 countries, playing a key role in shaping the future of blockchain policy globally.

His area of expertise includes Blockchain Information Security, Cybersecurity, Enterprise Blockchain Integration & Implementation, and Commercial Blockchain Application Development.

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