Justin Sun, the founder of Tron (TRX) believes that a proof-of-work (PoW) smart contract platform is essential in the crypto industry as the space is already crowded with proof-of-stake (PoS) blockchain protocols. USDD, a stablecoin founded by the crypto entrepreneur will be the first to support the post-Merge Ethereum fork (ETHPoW).
The controversial project founder is in full support of the planned miner-led post-Merge Ethereum hardfork. This possible post-Merge fork aims to create a blockchain that still runs on proof-of-work (PoW) after Ethereum is transitioned to proof-of-stake (PoS) in September.
In a recent interview with CoinDesk TV, Justin Sun pointed out that the proof-of-work (PoW) consensus algorithm provides a good foundation for the Ethereum infrastructure, although the protocol concept is associated with high transaction fees and lack of scalability.
He claims that the post-Merge fork led by the popular Chinese cryptocurrency miner, Chandler Guo, is a chance to preserve PoW technology for Ethereum in the future.
More so, the proof-of-stake (PoS) project founder remarked that PoW-based smart contract platforms are essential to the whole crypto industry, citing that the existing PoW projects like Bitcoin (BTC) are not useful in building decentralized applications (dApps).
“PoW is essential for Ethereum even though most people complain about high transaction fees and very slow transactions. I still believe that proof-of-work actually provides a very good foundation for Ethereum infrastructure.” – Justin Sun stated.
Asides from saying that PoW is essential, he highlighted the high security the consensus algorithm brings to the industry.
“Today, around $60 billion worth of crypto assets are on the Ethereum blockchain, all guarded by proof-of-work. I believe that we still need a chance to keep proof-of-work for Ethereum so, that’s why I support proof-of-work for Ethereum,” Justin Sun added.
Tron (TRX) founder also pointed out that EthereumPoW (ETHPoW), if successful, will allow the large community of crypto miners to keep their financial activity intact. In turn, ETHPoW will be a close competitor with the proof-of-stake Ethereum network.
According to him, about 50% of the crypto community, especially Bitcoin maximalists and crypto miners, still believes that PoW is safer and more decentralized than PoS networks. Regardless, Ethereum developers confirmed the Merge upgrade will occur in September.
Although several crypto exchanges, miners, and popular figures like Justin Sun have shown support for the planned post-Merge Ethereum fork, Vitalik Buterin believes the planned ETHPoW network will not succeed nor have a long-term substantial adoption.