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Is Ethereum Proof of Stake Sustainable? $-$ Considering from the Perspective of Competition Among Smart Contract Platforms $-$

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  • Kenji Saito
  • Yutaka Soejima
  • Toshihiko Sugiura
  • Yukinobu Kitamura
  • Mitsuru Iwamura

Abstract

Since the Merge update upon which Ethereum transitioned to Proof of Stake, it has been touted that it resulted in lower power consumption and increased security. However, even if that is the case, can this state be sustained? In this paper, we focus on the potential impact of competition with other smart contract platforms on the price of Ethereum's native currency, Ether (ETH), thereby raising questions about the safety and sustainability purportedly brought about by the design of Proof of Stake.

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  • Kenji Saito & Yutaka Soejima & Toshihiko Sugiura & Yukinobu Kitamura & Mitsuru Iwamura, 2023. "Is Ethereum Proof of Stake Sustainable? $-$ Considering from the Perspective of Competition Among Smart Contract Platforms $-$," Papers 2309.11394, arXiv.org.
    • Handle: RePEc:arx:papers:2309.11394
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    References listed on IDEAS

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    1. Iwamura, Mitsuru & Kitamura, Yukinobu & 北村, 行伸 & Matsumoto, Tsutomu & Saito, Kenji, 2019. "Can We Stabilize the Price of a Cryptocurrency?: Understanding the Design of Bitcoin and Its Potential to Compete with Central Bank Money," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 60(1), pages 41-60, June.
    2. Juan Ignacio Ibañez & Alexander Freier, 2023. "Bitcoin’s Carbon Footprint Revisited: Proof of Work Mining for Renewable Energy Expansion," Challenges, MDPI, vol. 14(3), pages 1-21, August.
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