Bitcoin’s Exorbitant Energy Use Consumption For Blockchain Mining: Real Problem?

2018-7-12 22:45

There are certainly a number of positive aspects to bitcoin, but there are also qualities that are less favorable as well. For example, bitcoin has been an issue due to the sheer amount of power necessary to create new virtual coinage.

According to Alex de Vries, PwC’s bitcoin specialist, it takes about 2.55 gigawatts (GW), at a minimum, to run bitcoin’s global software. This figure amounts to energy consumption of 22 terawatts-hours (TWh) per year. To put this figure into perspective – it is almost the same amount of energy consumption as Ireland.

Further, in terms of bitcoin miners, they have been consuming power exponentially – about five times more than they did a few years ago and there are no signs that their energy use is going to slow down. A question that has been pressing many is why bitcoin requires so much energy.

The answer is the blockchain, which is founded on an immutable ledger. The blockchain facilitates the transfer of value from one party to another and miners seek out results on an algorithmic puzzle, which must adhere to a specific set of requirements.

The server finds an acceptable solution every ten minutes and miners are rewarded by the bitcoin system. The current reward rate is 12.5 bitcoins, which are worth about $85,000 – minus $1,000 in transaction fees. Once the new block is created, more blocks are created, which then all become a part of the ledger.

To prevent the coins from being mined too quickly, the computation power of the network grows and bitcoin makes it more difficult to find a putative solution so that blocks are created.

Over time, it will become harder and harder to mine coins. Additionally, in terms of energy consumption, it may be derailing the growth of bitcoin over the long term because miners need to factor in the cost of data centers, electricity, and server upgrades.

To try and overcome the issue, a new concept called “proof of stake” has been developed. This allows a cryptocurrency investor to hold a stake in the currency for a period of time. The stake allows for voting rights concerning the formation of a block and the return on investment. Investors are also required to contribute computing assets. The good news is that this process requires far lower computational power, thereby mitigating concern about bitcoin’s power usage.

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

Bitcoin (BTC) íà Currencies.ru

$ 67139.51 (+0.16%)
Îáúåì 24H $24.382b
Èçìåíåèÿ 24h: 1.19 %, 7d: 10.31 %
Cåãîäíÿ L: $66739 - H: $67140.54
Êàïèòàëèçàöèÿ $1322.641b Rank 1
Öåíà â ÷àñ íîâîñòè $ 6386.96 (951.2%)

bitcoin create necessary new virtual coinage power

Èñòî÷íèê: bitcoinexchangeguide.com

bitcoin create → Ðåçóëüòàòîâ: 126


Ôîòî:

IOTA Tangle Transactions Nosedive as Spammers Create Parasite Chains

IOTA Foundation Head, Lewis Freiberg, attempted to explain alleged scalability and transaction issues at the project. The world’s number 9 cryptocurrency by market capitalization is under some pressure to clarify why its answer to traditional blockchain technology, the Tangle, is increasingly having to deal with spammers who create parasite chains or ‘Side Tangles.

2018-7-10 04:35


Ôîòî:

Estimated 4 Million Bitcoin is Lost Forever by Users’ Forgetfulness

As much as 20 percent of all the Bitcoin in existence is lost forever, Chainalysis has revealed — as the research firm says it handled contracts worth $750,000 since 2016. ‘We Don’t Help People Find Lost Bitcoin’ In comments to The New York Times, Chainalysis said that user failures to create robust methods of password storage meant as much as $20 billion of Bitcoin is locked out of reach.

2018-7-7 03:00


Ôîòî:

Swiss Stock Exchange Operator Plans to Launch Crypto Exchange

SIX, the firm that operates and owns the Swiss stock exchange, has announced plans to launch a fully regulated digital cryptocurrency exchange. The firm says it plans to launch "the first market infrastructure in the world” which will “offer a fully integrated end-to-end trading" while providing a safe environment where digital assets can be issued and existing securities and non-bankable assets can be tokenized.

2018-7-7 23:11


INGOT COIN Announces they have Achieved their Soft Cap

Bitcoin Press Release: The INGOT Coin team are pleased to announce the completion of their pre token generation event receiving over $40,000,000 from 6000+ backers. 5 July 2018, LOCATION – INGOT Coin, stated that their intention is to create an unprecedented, a first-of-its-kind revolutionary ecosystem based on blockchain technology that will link newly developed crypto […] The post INGOT COIN Announces they have Achieved their Soft Cap appeared first on Bitcoin PR Buzz.

2018-7-5 15:21


Volkswagen, Bosch and Nvidia Create NAV Alliance to Promote Autonomous Vehicles

Volkswagen created the Networking for Autonomous Vehicles (NAV) Alliance in partnership with four major suppliers of components — Nvidia, Continental, Bosch, and Aquantia. The alliance aims to bring a standardized approach to the market and to make simpler the complex back-end work required to bring autonomous cars to the market on a large scale.

2018-6-28 14:30


äàëüøå åùå 77 íîâîñòåé →

Ïàðòíåðû Currencies.ru

Ðåêëàìà íà Currencies.ru

Ñàìîå ñâåæåå íà Currencies.ru

Eclipse Labs appoints new CEO after investors ‘urge’ founder to resign

Eclipse Labs replaced Neel Somani with Vijay Chetty as the firm's new CEO Investors, led by Hack VC, could have played a role in the change in management  Eclipse Labs has replaced its founThe post Eclipse Labs appoints new CEO after investors ‘urge’ founder to resign appeared first on AMBCrypto.

Is Arbitrum's latest record good news for ARB's price? Metrics say...

Arbitrum active addresses registered figures of 900,000 for consecutive days ARB's market trend has continued to fall though Arbitrum is in the news today after it seemed to solidify its posThe post Is Arbitrum's latest record good news for ARB's price? Metrics say... appeared first on AMBCrypto.

XRP whales add $55 million, but the price falls again - What's happening?

XRP whales have increased their accumulation of the token over the last 14 days However, this failed to affect the altcoin's price positively XRP's price has maintained a downtrend on the chThe post XRP whales add $55 million, but the price falls again - What's happening? appeared first on AMBCrypto.

Countdown to Notcoin's Binance listing - Will NOT and TON profit from it?

78% of NOT’s total supply will be allocated to miners  TON turned bearish as its price dropped by more than 3.5% The wait for the much-hyped Notcoin [NOT] launch is about to end soon. As The post Countdown to Notcoin's Binance listing - Will NOT and TON profit from it? appeared first on AMBCrypto.