V. Buterin: "Minners can lost their business due to POS"

Vitalike Buterin shared his thoughts on the current state of cryptocurrencies world
11 September 2017   2088

Vitalik Buterin, creator of Ethereum, one of the most popular person in cryptocurrency world, recently gave an interview for a Russian issue "Commersant".

When we will migrate to the Proof-of-Stake protocol, even at the first stage the need for mining will drop dramatically. Proof-of-Stake uses an algorithm that doesn't require large number of computers constantly make calculations. This is an algorithm where a coin is used inside the platform itself. The consensus will become much cheaper and safer. And in fact, miners can lose their business.

Vitalik Buterin
Creator of Ethereum

Vitalik also reported about the risks for cryptocurrency owners.

The biggest risk is financial. Much is said about this and I am no exception. The market is very volatile now. This affects both large crypto-currencies and ICO-projects. A bubble can burst at any moment, and projects can lose a lot of money at once. 

He also believes that there are risks in the fact that interest to the blockchain is growing too fast, because the technology itself is not yet ready to accept all this interest. 

This situation has now developed with bitcoin. There are not enough room in the blockchain, it's becoming more and more difficult to use, the commissions are growing. In Ethereum, it [the commission] is still less than one cent. We do not intend to divide the ETH, as it was done with bitcoin, it is not necessary, but the risks still remain.

Vitalik Buterin
Creator of Ethereum

In addition, according to Buterin, the risk remains high for fraud.

Any technology can be used for bad purposes. And ours, unfortunately, too - no matter how much we wish this would not happen. We can not guarantee 100% security.

Vitalik Buterin
Creator of Ethereum

Looking into the foreseeable future, Buterin believes that the types of fraud associated with using other people's data will be relevant, when one person impersonates another. This kind of fraud, he says, is practically ineradicable and will live for a very long time.

There are also new types of fraud, for example, related to competencies.

So, companies that issue smart contracts can issue a contract with a deliberate code error that allows them to withdraw all the money. Such a case was recently recorded in our community. And it's good that this happened on a small scale - this allows us to learn and set ourselves the task of minimizing such risks.

Vitalik Buterin
Creator of Ethereum

Additionally, Vitalik notes the growth of fraud in the ICO market, when fraudsters give out a fake ICO for a real project with the help of fake sites, collecting several thousand dollars from investors and disappearing in an unknown direction. 

BNC to Monitor BTC Community's Mood

The system called Twitter Sentiment analyzes over 34M BTC-related Twitter posts each week, using AI to track the mood of the community
22 January 2020   67

Blockchain-based New Zealand-based research firm Brave New Coin (BNC) has unveiled a new system for measuring the mood of the Bitcoin community based on Twitter messages.

According to BNC, the new Twitter Sentiment rating system analyzes over 34 million BTC-related Twitter posts each week. The company uses artificial intelligence (AI) algorithms that look for records containing the words bitcoin, $ BTC and BTC and others.

BNC notes that user sentiment continues to be a “significant” factor in the price and dynamics of digital assets, and a new technique has been developed to track these sentiments. According to the BNC, it took 18 months to launch the Bitcoin Twitter Sentiment. The data obtained is divided into seven categories - Opinion, Technical Information, Inside the Network, Advertising, Bots, Macros and Hacking.

For the week ending January 17, the most common entries were in the Opinion category - their number was 30.42% of all data received. In second place was the category Technical Information, and in third inside the network (includes information on mining and hashrate).

BNC spokeswoman Pierre Ansaldi said that during the first quarter of this year, the company will also launch community sentiment analysis tools for other crypto assets.