Stanford University’s David Tsè asserts that his team’s investigation has uncovered a significant security relationship between Bitcoin and proof-of-stake (PoS) protocols.

Following the implementation of proof-of-stake (PoS) as Ethereum blockchain’s consensus mechanism, an analysis shows that Bitcoin can indeed be enhanced by PoS. This finding comes less than a year after Ethereum, the sector’s preeminent blockchain network, adopted PoS.

In an interview at the 2023 Bitcoin Builders conference in Miami, Florida, Stanford University’s David Tsè shared his team’s discoveries about Bitcoin, PoS, security, and energy consumption. Tsè runs a research lab at Stanford University in California, where they specialize in studying blockchain consensus protocols, and their initial focus was on Bitcoin’s proof-of-work (PoW) protocol.

The professor affectionately referred to Bitcoin as their “first love”. His team’s comprehensive understanding of Bitcoin and subsequent comprehension of PoS protocols led them to identify a “distinct symbiosis” between the two.

Tsè mentioned that the creation of an additional protocol layer, sharing the security between Bitcoin and PoS, can significantly enhance security. However, he also outlined two primary challenges for PoS blockchains: attracting stakers due to the proof-of-stake model’s capital requirement and the interrelation between security and capital. He emphasized that lack of capital would lead to inadequate security.

Tsè further elaborated that while Bitcoin boasts robust “long-range” security, PoS’s security is “short range”, making the two a perfect pair. He proposes that distributed ledger applications be built in a more streamlined manner by utilizing Bitcoin’s vast capital reserves as economic security for various chains, thereby allowing developers to concentrate on application construction, the core purpose of a blockchain network.

One significant criticism levelled at Bitcoin and other PoW systems is their substantial energy consumption. Tsè agrees that Bitcoin’s reputation regarding energy usage can be difficult to justify to new generations of learners. However, he underlines the importance of understanding the reasons behind such consumption.

He explains that security is impossible without energy, and without security, there’s no value. He believes that the current technological trend should focus on putting this consumed energy to higher value uses.

Tsè cited Bitcoin’s excellent security as a valuable asset and mentioned Bitcoin Ordinals, a project that leverages this security. He explained that what sets Ordinals apart is that it’s being developed on the world’s most secure blockchain platform.

The recent surge of Bitcoin nonfungible tokens (NFTs) in the crypto arena has provoked mixed reactions, with some arguing their ephemeral nature and others suggesting their positive impact on Bitcoin. Concurrently, Binance’s NFT marketplace started offering Bitcoin NFTs on May 9. In just over a week, Bitcoin Ordinals almost doubled their registrations, nearing the 4.8 million mark.

This exploration of the synergies between Bitcoin and PoS can potentially unlock new avenues in the blockchain technology sector. As security continues to be a significant concern, the combination of Bitcoin’s long-range security and PoS’s stake-based model could provide a robust solution. However, it’s crucial for developers, investors, and blockchain enthusiasts to keep an open mind and continue to explore and understand these technologies as they evolve.