<\/p>\n
Sam Bankman-Fried, the founder of crypto exchange FTX, has criticized the efficiency of Bitcoin (BTC) as a payment network, only to meet heavy backlash from the crypto community.<\/p>\n
During an interview with the Financial Times, Bankman-Fried fueled environmental concerns associated with the Bitcoin network\u2019s mining consensus, proof-of-work (PoW), and claimed it’s not scalable enough to accommodate millions of transactions.<\/p>\n
He advocated for the use of proof-of-stake mining consensus instead and claimed it is better suited for blockchain payment networks. He said:<\/p>\n
\u201cThings that you\u2019re doing millions of transactions a second with have to be extremely efficient and lightweight and lower energy cost. Proof of stake networks are.”<\/p><\/blockquote>\n
Bankman-Fried comments resonated with the recent calls for a complete ban on PoW by a group of billionaire lobbyists comprising Ripple co-founder and several other environmental groups. However, Bitcoin proponents have been actively fighting against the ongoing narration calling for a change in the\u00a0code of the Bitcoin network’s mining consensus. <\/p>\n
Related:\u00a0Eager to work: Bitcoin switch to proof-of-stake remains unlikely<\/em><\/strong><\/p>\n
The likes of Jack Dorsey have already made it clear that PoS is more centralized and less secure than PoW.<\/p>\n
The crypto community was not very pleased with FTX CEO\u2019s recent comments. Many claimed the Bitcoin network is not intended to be a payment network, but rather a settlement one and layer-2 solutions such as the Lightning Network act as the main payment gateway. One user wrote:<\/p>\n
\u201cEither SBF or FT lying here. What happens to L2 (Lightning Network)? The Bitcoin Lightning Network handles up to 1,000,000 transactions per second!\u201d <\/p><\/blockquote>\n