2024-04-01
In reaction to US Securities and Exchange Commission's (SEC) request for facts on Ethereum's proof-of-stake (PoS) consensus mechanism, Consensys, a blockchain and web3 software program improvement company, has furnished a comment letter protecting the safety and legitimacy of Ethereum.
Consensys said that the worries raised through the SEC concerning fraud and manipulation on the subject of spot ether exchange-traded funds (ETFs) are " absolutely with out merit." They argue that Ethereum's PoS implementation definitely surpasses the safety of Bitcoin's Proof of Work (PoW), that is the idea for authorised bitcoin- primarily based totally ETFs.
One of the important thing factors highlighted through Consensys is that Ethereum gives quicker block finality as compared to the Bitcoin community.
Additionally, Ethereum's segregation of obligations among proposers and attesters facilitates save you massive stakeholder control.
It mentioned that attacking Ethereum's community might be dearer than attacking Bitcoin's community , and validators are penalized for violating protocol rules. Moreover, Ethereum is taken into consideration greater environmentally pleasant than Bitcoin.
Consensys emphasised the superior safeguards inherent in Ethereum's layout and entreated the SEC to understand them.
They argued that those safeguards now no longer handiest meet however exceed the exemplary safety and resilience measures of Bitcoin- primarily based totally ETFs which have formerly been authorised through the SEC.
While spot bitcoin ETFs have received big popularity, the approval of a niche ether ETF in May of this 12 months stays uncertain. Bloomberg ETF analysts estimate the possibilities of a niche Ethereum ETF gaining approval in May to be round 30%.
Overall, Consensys' comment letter goals to deal with the SEC's worries concerning Ethereum's PoS consensus mechanism and spotlight the robustness and safety of the Ethereum community.
