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FTX Chief Executive Officer Backs Solana as a Payment Network, Dismisses BTC Due to its POW Mining Model

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FTX Chief Executive Officer Sam Bankman-Fried said that FTX CEO Sam Bankman-Fried had dismissed Bitcoin as an acceptable payment option. The head of one of the largest crypto exchanges globally has claimed that Bitcoin’s power consumption and high cost of Proof of Work (PoW) mining puts it out of the possibility of becoming an increasingly popular alternative to payment using crypto. Bankman-Fried suggests that Solana (SOL) is best considered a possible financial alternative to traditional payment alternatives. Contrary to Bitcoin’s PoW mining technology, Solana uses Proof-of-Stake (PoS) mining, allowing millions of transactions per second at a lower cost.

“Things that you’re performing millions of transactions per second must be extremely efficient, light, and lower energy costs. These networks, known as proof-of-stake, are. They are. Bitcoin Network does not function as a payments network, and it’s not a scaling network.” CryptoPotato quoted the FTX CEO as declaring.

Although PoS mining activities employ randomly selected miners to verify the transaction, PoW mining requires a validated method of competition to confirm transactions and add more blocks to the blockchain. Thus, the process of PoW mining is more costly to manage.

Bankman-Fried, who has recently bought a 7.6 per cent stake in the Robinhood cryptocurrency exchange, is not the only person who doesn’t see BTC as a viable alternative to pay.

Elon Musk, the chief executive of Tesla and SpaceX, also has similar views regarding BTC.

In December of last year, Musk was also quoted saying that Dogecoin could be better suited to be an exchange currency since BTC was not a good alternative.

Tesla had offered bitcoin as an option to pay for payments during a brief period in the past year but then pulled the feature due to environmental issues associated with Bitcoin’s mining.

Solana In contrast, it appears to be the most popular choice for green crypto enthusiasts seeking to explore “efficient Blockchains’.In the December 2021 Energy Use Report, Solana claimed that two Google searches use more energy than one Solana transaction.

Blockchain has grown to be a preferred option for NFT players too. According to the data tracking tool CryptoSlam, Solana is second in the history of NFT sales.At present, crypto miners are under pressure to become green when processing virtual currency. A bill with the US’s New York state authorities has called for a two-year restriction for crypto miners that plan to establish their operations in the region but do not use energy-efficient mining techniques. PoS mining has become an increasingly popular model for miners trying to join.Ethereum is currently undergoing an overhaul which will change it away from the PoW mining platform to a PoS.

In a proof-of-work-based blockchain, miners generally sell a portion of newly created cryptos to pay their expenses. However, a PoS blockchain allows holders to be paid to verify transactions. This encourages the holding of crypto and is excellent in terms of price.

Alongside its mining strategies, BTC is expensive in terms of affordability for all.Musk has declared BTC the superior investment option and not an option for daily payments that can be deployed.

fatima khan
fatima khanhttps://myelectricsparks.com/fatima-khan/
A brand new writer in the fields, Fatima has been taken under my electric spark's RGB- rich and ensures she doesn't engage in excessive snark on the website. It's unclear what command and Conquer are; however, she can talk for hours about the odd rhythm games, hardware, product reviews, and MMOs that were popular in the 2000s. Fatima has been creating various announcements, previews, and other content while here, but particularly enjoys writing regarding Products' latest news in the market she's currently addicted to. She is likely talking to an additional blogger with her current obsession right now.

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