Vitalik Buterin, the co-founder of Ethereum, defended the network's switch to proof of stake (PoS) on Twitter on Tuesday in response to claims that assets protected by such consensus methods are securities.
Swan Bitcoin managing editor Nick Payton remarked on Tuesday that "the ability to vote on something to modify its attributes is proof that it's a security," marking his statement with the phrase "love Bitcoin" in reference to the proof-of-work (PoW) consensus algorithm.
This allegation was rejected by Buterin as a "unmitigated barefaced lie," and he added that neither PoS nor PoW include voting on protocol settings.
As a crucial component of the protracted transition to Ethereum 2.0, Ethereum is set to abandon its current PoW consensus method in August by merging the PoS Beacon Chain with the current chain.
Both PoS and PoW are methods for validating networks; although PoS rewards miners based on how much they have staked to the network, PoW bases the chance of mining a new block on how much processing power is done by the miner.
Since the Terra-LUNA crisis, the number of regulators has increased, and U.S. politicians have proposed a bill that places a lot of focus on whether to classify cryptocurrencies as commodities or securities.
Gary Gensler, the head of the U.S. Securities and Exchange Commission (SEC), recently reiterated his position that Bitcoin should be treated as a commodity. Gensler has been advocating for the categorization of most cryptocurrencies as securities.