DUBAI, United Arab Emirates, Nov. 28, 2022 (GLOBE NEWSWIRE) — JKL Group (www.jkl.group) CEO Lin Cheung joined industry experts in a “Proof of Work vs Proof of Stake” energy debate at the AIM Summit – leading alternative investment management summit held in Dubai on 22 November 2022.
Ever since Ethereum Mainnet switched to Proof of Stake (PoS) mining algorithm on September 15thth, the crypto community has been engaged in a spirited debate about the relevance of the Bitcoin native Proof of Work (PoW) algorithm. Leaders of the Bitcoin mining industry – including HIVE Blockchain, JKL Group, SATO Technologies and Lake Parime – gathered to present insights into the current state of Proof of Work mining.
Panelists noted that the US regulators have a long history of scrutinizing PoS blockchains. The 19thth On September 1, SEC Chairman Gary Gensler suggested that since almost half (46%) of Ethereum nodes are hosted in the United States, all Ethereum transactions fall under the jurisdiction of the US government. Also, the SEC is known to classify PoS cryptocurrencies as unable to pass the Howey test and therefore qualify as securities. Panelists agreed that with the rise of digital asset regulations, PoW-based blockchains will become more relevant.
Another point discussed by the panel was the role of Bitcoin mining as a load balancer for the power grid. Power stations are designed to operate at a specific frequency with a low margin of tolerance. If the electricity load outweighs the demand for electricity, the frequency will increase, which may force the power plants to disconnect from the grid. Conversely, the frequency will decrease at peaks of power consumption that the grid cannot satisfy, which can disrupt the grid’s performance.
“Energy production and consumption is not stable. Storing energy is expensive, inefficient on a large scale and leads to energy waste,” commented Lin Cheung. The Proof of Work mining process has 3 features that make it an efficient network load balancer. First, PoW provides a stable and continuous demand for energy. Second, PoW mining can be turned on and off at any time. Third, the PoW mining process is location agnostic.
About JKL Group
JKL Group was founded in 2017 by a team of experienced professionals with a background in traditional finance and expertise in global financial markets, asset management and quantitative investment strategies. The Group’s competitive advantage is its end-to-end expertise in digital assets, covering quantitative trading, lending, OTC services and Bitcoin mining.
Visit JKL Group’s website www.jkl.group to find out more about their digital asset services and Bitcoin mining facility.
About the AIM Summit
Launched in 2015, AIM Summit is The Leading Alternative Investment Management Summit that brings together and connects investors and managers in the world of alternatives (hedge funds, private equity, venture capital, private debt, digital assets, FinTech) with global industry leaders.
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