Ethereum: Binance CEO Changpeng Zhao said It's Not a Merge it's another Earth-Shaking Upgrade
Binance Cryptocurrency Exchange CEO Changpeng Zhao said that although Ethereum (ETH) transition to Proof-of-Stake (PoS) consensus mechanism is progressing in the right direction, it is not "move".
Zhao said in a new Crypto Banter interview that the revolutionary change Ethereum can make is to reduce transaction costs and improve scalability through sharding.
“I think [the transition from Ethereum to PoS] is very important. But I don't think that's a fundamental change. There are other blockchains that are already PoS. There are other blockchains that are betting, deflation…
I think all of this is important, but it doesn't sound like a dirty move. But it's definitely progressing in the right direction.
I think what will be interesting will be when rates go down, when sharding starts and when they can live with sharding. It's a much harder problem to solve.”
Sharding is the process of dividing the Ethereum infrastructure into smaller pieces known as shards in an effort to distribute the load and increase the scalability of the blockchain.
The Binance CEO also commented on the proof-of-work (PoW) consensus mechanism that Bitcoin (BTC) is currently using. According to Zhao, there is a lot of "misinformation and misconceptions" surrounding PoW models.
“I think proof of work is fine. I think all this Bitcoin doesn't save energy, it uses too much energy...it's just misinformation and misconception.
That's just because we can measure how much energy Bitcoin uses. But if you were to try to measure the amount of energy that banks, buildings and urban centers use to manage a trillion dollar asset, there is no more efficient way.
Banks expend more energy just on electricity. And then they have to have all these buildings, all the gold transport trucks or the security guards. And they hire all these people. The cost they use to manage those assets is a lot higher than Bitcoin. "
Sep 21, 2022