ConsenSys Writes To SEC, Claims Ethereum More Secure Than Bitcoin

LUCKNOW (CoinChapter.com)— In a letter to the US Securities and Exchange Commission (SEC), ConsenSys Software Inc. addressed concerns about Ethereum’s vulnerability to fraud and manipulation. The firm also wrote to convince the regulator to approve the spot Ether ETFs.

ConsenSys pushed for the approval of Nasdaq’s proposed rule change to list and trade shares of the iShares Ethereum Trust under Nasdaq Rule 5711(d).

The March 29 letter from ConsenSys specifically argued in favor of the structural and operational security merit the second largest blockchain platform.

Ethereum’s Security Framework

ConsenSys outlined how Ethereum’s transition to a proof-of-stake (PoS) consensus enhanced network security and efficiency. Moreover, the shift to PoS not only slashed energy consumption but also boosted scalability, highlighting Ethereum as a robust and environmentally friendly blockchain network.

Moreover, Ethereum’s PoS mechanism helps the blockchain achieve faster transaction speeds and ensures blocks are immutable and irreversible in a reduced timeframe.

Furthermore, the firm elaborated on Ethereum’s validation process, which aims to thwart large stakeholder control. By dividing responsibilities between proposers and attesters within its framework, the network safeguards against manipulation.

The process, enhanced by the regular reshuffling of committees, establishes a rigorous security protocol that deters fraudulent activities.

Ethereum More Secure Than Bitcoin, Says ConsenSys

Additionally, ConsenSys emphasized that attacking the Ethereum network would be very expensive and complex, making Ethereum safer than Bitcoin.

Moreover, the firm highlighted the environmental advantages of Ethereum’s PoS mechanism over Bitcoin’s energy-intensive PoW consensus. Environmental concerns have been a drawback for the Bitcoin network.

The total cost to attack on Ethereum would be nearly $34.39 billion (at December 2023 ether prices), and it would take nearly six months. The total cost to attack on Bitcoin, consisting mostly of the cost of computer hardware and electricity, would range from just under $5 billion to a little over $20 billion

ConsenSys wrote in its letter

ConsenSys attributed Ethereum’s resilience to its expansive and active developer community. The firm’s letter noted that the community was a bastion against vulnerabilities. Moreover, a diverse array of independently developed software clients ensures the network’s continuous stability and security.

In addition, the blockchain’s commitment to transparency erects additional barriers to fraud and manipulation.

ConsenSys stated that the advanced security features and operational transparency of Ethereum provided the SEC with an excellent foundation to approve the listing and trading of the Shares of Ethereum Trust.