Cloudflare, the internet networking giant, is stating its interest in Proof-of-Stake (PoS) consensus models and specifically in the upcoming Ethereum (ETH) Merge. The company wants to exploit nodes of this blockchain and is also critical of Proof-of-Work (PoW).
Cloudflare wants to invest in Ethereum (ETH)
Cloudflare, the US web giant has expressed interest in Consensus Layer’s Proof-of-Stake (PoS) model, which is what Ethereum (ETH) will look like after the famous Merge:
Today, we are excited to announce the start of our experiments for the next generation of web3 networks that are embracing Proof of Stake; beginning with Ethereum. https://t.co/vTWAkkm8Ds PlatformWeek
– Cloudflare (@Cloudflare) May 16, 2022
Cloudflare sees the Proof of Stake model, and Ethereum in particular, as the future of Web 3.0, which is why the company wants to deploy validation nodes to secure this blockchain, once it changes its consensus model.
In addition, the company is confident about the added value it can bring to the network, particularly through its solutions based on an InterPlanetary File System (IPFS) protocol. The latter allows for geographical decentralisation of data storage, unlike the classic data centres of the Web, as it is mostly built today.
By extension, Cloudflare is also opening its gateway and storage services for Ethereum to the general public.
A critical view of Proof-of-Work
In its report, Cloudflare is sceptical about the viability of the Proof-of-Work (PoW) model on which Bitcoin (BTC) is based, for example. For the company, the complexity of the calculations required to solve the mathematical enigma inherent in this consensus is such that it generates a colossal waste of energy.
This brings us back to the eternal debate that divides the supporters of both models. If the high energy consumption of Bitcoin is a fact, it is often put in perspective with the low scalability of the network. However, the Lightning Network offers a very high capacity. All this without increasing energy consumption.
Obviously, there are advantages and disadvantages to each blockchain technology and it may never be possible to reconcile each philosophy. The most important thing is to keep an eye on the different developments, so that you can make the most of the future, which is being built now.
