Ethereum Is ‘Not A Security,’ Says Vitalik Buterin
- Ethereum co-founder Vitalik Buterin came out in support of the blockchain network
- He said that ETH is “not a security,” defending The Merge
Ethereum (ETH) co-founder Vitalik Buterin came out in support of The Merge during an argument and claimed that Ethereum is “not a security.” The crypto community has been anxiously waiting for the transition from ETH to ETH 2.0.
Buterin replied to a comment from a Bitcoin (BTC) support who claimed that if a community can vote to change the properties of a blockchain, it is centralized because it involves the decision of the biggest stakeholders and hence, is in a way centralized.
On the other hand, the Etherem co-founder came out to defend the transition of ETH to ETH 2.0 stating that such claims are “unmitigated bare-faced” lies.
The fight between Proof-of-Work (PoW) based Bitcoin (BTC) and Ethereum (ETH) has been going on since the proposal for the transition of ETH from PoW to Proof-of-Stake (PoS) was passed. The blockchain has been undergoing heavy restructuring and will require staking procedure to operate.
The world’s second-biggest blockchain might transition to ETH 2.0 by the end of August as per previous claims of Buterin. In the fight between PoW and PoS, it is clear that Buterin has sided with the latter.
There is are many reasons why PoW blockchains like Bitcoin have caught the attention of regulators and environmentalists around the world. PoW blockchains consume a huge quantity of electrity so that more and more of their tokens can be released into the market. On the other hand, PoS network use another mechanism called staking for the same.
Also, small grammar nuance: in English when talking about things like proof of stake, we don’t say “it’s a security”, we say “it’s secure”. I know these suffixes are hard though, so I forgive the error,Buterin said, hinting that PoS is more secure.
SEC Chair: Only BTC is commodity
The Chairman of SEC, Gary Gensler believes that only Bitcoin is security and the other cryptocurrencies are securities. While asked for his comments on Ethereum, he did not single out the world’s 2nd biggest blockchain network but added that only Bitcoin deserves the status of commodity while others are securities which come under the regulation of the SEC while Bitcoin could come under the regulation of the Commodity Futures Trading Commission (CFTC).