Consensys Responds to SEC Concerns Over Ethereum’s Proof-of-Stake Security
#Consensys recently addressed inquiries from the U.S. Securities and Exchange Commission (SEC) regarding the integrity and potential risks of fraud and manipulation in Ethereum’s proof-of-stake (PoS) mechanism, especially in relation to spot Ether exchange-traded funds (ETFs).
In their submission to the #SEC , Consensys, known for its blockchain and Web3 software development capabilities, including the creation of the widely-used MetaMask wallet, assured that the apprehensions regarding fraudulent activities and manipulation in Ethereum's system are unfounded.
Through a detailed blog post, Consensys clarified:
"Ethereum’s implementation of PoS not only matches but surpasses the security measures of Bitcoin’s proof-of-work (PoW) system. This is noteworthy considering that the SEC has already approved Bitcoin-based #ETFs for trading, acknowledging their security."
The firm specializing in #Ethereum infrastructure laid out several of Ethereum’s strengths over Bitcoin, including faster block finality, a clear separation of duties between proposers and attesters to prevent the concentration of power, higher costs associated with attacks, strict penalties for any violations by validators, and a more environmentally friendly approach compared to Bitcoin.
$ETH #etf