- European Central Bank Published a report and compared Pow with Petrol vehicles and PoS with Electric vehicles.
- Tesla halted accepting BTC payments in 2021 and will resume after green energy consumption.
European central bank made a remarkable statement and compared Proof of work and Proof of stake with gasoline and electric vehicles.
Proof of work is compared with a Gasoline vehicle which consumes massive heat, and huge computational power is needed for its operation. Due to the huge consumption of Electricity, it is more costly than the other mechanism.
According to the European Central Bank’s statement, Proof of stake is an electric vehicle that consumes less Electricity with no harm to the environment.
Comparing petroleum vehicles with electric vehicles can be understood as the most relevant example of determining the huge difference between Proof of Work and Proof of stake.
According to the reports, Tesla stopped accepting Bitcoin payments for their goods and products. Elon Musk, CEO of Tesla, Stated that the payment halted will be restarted as soon as miners start consuming 50% or more than that green energy for their mining operation.
According to some market technical specialists, Proof of stake consume less energy compared to the Proof of Work mechanism, and Proof of stake consumes energy as less as a small town in the USA with 2100 houses.
European Central Bank called up an urgent meet after the crash of the Terra Stablecoin Algorithm. And have advised the officials to prepare a roadmap for banning PoW till 2025.
Conclusion
It is justified that Pow is consuming much more energy and is also very expensive compared to other mechanisms, termed as Proof of stake. Because of using the Proof of Work Mechanism, many countries like Texas and Kazakhstan have faced energy crisis problems and unprecedented temperature rises and heat waves in the last few years. European central took the initiative of Banning mining based on the Pow mechanism.
Source: https://www.thecoinrepublic.com/2022/07/19/pow-and-pos-are-like-petroleum-and-electric-cars-in-the-crypto-world-the-european-central-bank/