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   1282

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. 

Vinnik Extradtion to France to be Supported by SCoG

Alexander is holding the hunger strike for 24 days and lost around 9 kilos
19 December 2018   22

Following the trial court of the city of Thessaloniki, the Greek Areopagus decided to extradite Alexander Vinnik, suspected of laundering $ 4 billion through the BTC-e cryptocurrency exchange, to France. Thus, the appeal of Russian lawyers was rejected, reports TASS referring to the chairman of the court Angelique Aliferopoul.

After the announcement of the verdict, Alexander Vinnik declared that he would continue the hunger strike against the arbitrary rule of the Greek authorities, which began in mid-November.

I have been starving for 24 days. Yesterday I was weighed; according to the documents, I lost 8 kg. But they did not immediately begin to weigh me, only on the third day. So I lost 9 kg. If I'll be extradited to Moscow, I will stop starving.

Alexander Vinnik


Alexander Vinnik was detained in Greece at the request of the American authorities on July 25, 2017. In June 2018, Vinnik was arrested in absentia in Russia on charges of cyber fraud on a large scale.

At the moment, there have been several court decisions on the extradition of Vinnik - at the request of the United States, at the request of France and two decisions at the request of Russia. The final decision on the case will take the Minister of Justice of Greece.