Hugo Philion, CEO of Flare Networks, highlighted the biggest drawbacks of Ethereum 2.0. In an interview with Crypto Eri, Flare Networks CEO and founder Hugo Philion shared his opinion on the Proof of Stake (PoS) algorithm that will form the basis of the Ethereum 2.0 blockchain. While Philion claimed that PoS is “great,” he also said there are some major issues that he thinks need to be addressed.
Flare’s primary goal is to bring the value of ecosystems together, but it also has a broader goal of scaling Ethereum.
Philion explained that PoS is “extremely inefficient” in terms of capital usage:
“Essentially, it bases the security of the network on the value of the staking token. Therefore, when Ethereum switches to proof of stake, the security of the network will partially depend on the value of Ethereum. This really limits the use cases where it can be used reliably without a huge increase in value. ”
Moreover, he underscores the risk of treacherous actors taking control of the network, which was recently discussed by Vitalik Buterin. On the other hand, according to the CEO, Flare does not base the security of the entire network on the value of the token:
“So we’re just taking a very different direction in how to reach consensus. We think this scales both for a number of transactions per second and essentially for use cases or what you can do with the network. ”
Philion says the immediate value of Flare is to provide a platform for XRP to be used with smart contracts:
“We’ve described it pretty succinctly, I think with the FXRP system and Flared.”
The flare network is a “very decentralized” network because it is controlled not by its token, but by its nodes:
“If there was a concentration control, let’s say all the knots were based on a field that could change very rapidly for some reason, and there is nothing to stop that from changing. However, if you have a token with a network, that token can stop it from changing. So this is very important. “