Expert Opinion: Will Network Be Safe After The Next BTC Halving?
As you know, any blockchain network exists due to the commission paid by transaction participants. The size of the average commission varies depending on the amount of the transaction, the total volume of cryptocurrency trading. On the eve of Bitcoin’s halving and reward cuts, many coin networks faced a risk of closure. To avoid this, there are two ways: increasing the number of fees charged or increasing trading activity within the network.
A sincere follower of Bitcoin Andreas Antonopoulos believes that the Bitcoin network will remain safe even if the size of the rewards of miners changes dramatically. He noted:
“Now we need to track how the volume of transactions in one block space will change depending on various factors. In particular, the introduction of new technologies such as Schnorr/taproot should be considered. We can only wait for the final result. ”
However, the Bitcoin network, which is based on Proof of Work technology, is subject to criticism. Many analysts believe that this network does not provide high transaction security and thus contradicts its key principles of decentralization and reliability. Crypto enthusiasts began to look for an alternative to this technology and drew attention to the Proof of Stake method.
Many people agree that this method provides a higher level of network security. Also, the benefits of Proof of Stake include reduced hardware and operating costs, which in turn increases the profitability of the crypto. Today, the crypto community with bated breath expects the release of ETH 2.0, which will be based on the Proof of Stake method.
How will the Bitcoin network respond to the reduction of miners?
Bitcoin halving is expected to trigger a wave of surrender by many miners. Reduce the fee for mining Bitcoin by half, reduce the profitability of mining the flagship crypto amid high electricity costs and technical support for mining equipment. According to cryptanalysts, this could strike a blow at the security of the Bitcoin network. But Antonopoulos strongly disagrees with this statement. He is sure that leaving even half of the miners will not be able to reduce the security level of the Bitcoin network.