Would you work exclusively for Bitcoin
Cryptocurrency: How much does Bitcoin damage the climate?
The basic thought of its inventor Satoshi Nakamoto, whose identity has not yet been clarified, is to blame for the high energy consumption of the Bitcoin network. The problem with traditional currencies is that they require a lot of trust in the central bank and banks, wrote Nakamoto in an online forum when he presented his idea in the middle of the financial crisis. With Bitcoin, he wanted to create a digital currency whose users would not have to trust each other or any banks or middlemen. Just the technology.
This is possible thanks to the cryptography that gives the crypto currencies their name. All entries in the blockchain are public. But only those who know the appropriate cryptographic key can access the credit balance of an address. In addition, all computers in the network have to solve a cryptographic puzzle if they want to add a new block to the blockchain. The more computers participate, the more complicated the puzzle becomes. The first computer to solve the puzzle is rewarded with Bitcoin. The result is difficult to determine, but once found it is easy to verify.
This mechanism will proof of work called, proof of work, and it serves to protect the blockchain. No miner has enough knowledge or capabilities to manipulate the blockchain. "But that is exactly what ensures that the computers perform quintillion arithmetic operations every day that are ultimately useless," says Alex de Vries, "that is the sore point of Bitcoin."
However, there is an alternative to the proof of work, she calls herself proof of stake. The algorithm does not require proof of work in the form of a solved puzzle, but a proof of proportion. Computers with a certain amount of assets are given the right to update the blockchain. Diligence is replaced by power - and whoever cheats is threatened with the loss of power and wealth. "That almost completely reduces the energy requirement," says de Vries. "In addition, far fewer computers are required. This means that there is also less electronic waste."
There are now several cryptocurrencies that use this mechanism; the most sought-after are cardano and polkadot. Ethereum, the second largest cryptocurrency after Bitcoin, is in the process of being sold by proof of work to proof of stake switch. However, the mechanism has one weakness: it is more susceptible to manipulation and requires more trust in the reliability of those in power.
- Who was Charles Boyer
- What makes a lively crossword puzzle entry
- If the world were a school
- Why should true socialism or communism work
- Good readers are good students
- What is the Burmese word for Mr.
- How can I download WorldStarHipHop videos
- What is AGS in Wagon R.
- Do you own a historic home
- What does 96k Maratha mean
- What are some self-harming coping techniques
- What is the best music composition software
- What is a semantic analysis algorithm
- What are secrets of the dark web
- What are the best books on landscaping
- Quora is gradually losing its charm
- How much ruminating is healthy
- Survive spiders after vacuuming
- Is Ravichandran Ashwin at rest
- Why do you do apps
- You can get high from meclizine
- How do you overdose with sleeping pills
- How much does a mammography cost without insurance
- Airbnb plans to open their API
- How does an engine work 8
- What are some time-saving C-codes
- When do business partners separate
- Where can you find the black market
- Who studies earthquakes
- Why shouldn't or shouldn't Apple buy Twitter?
- Love gives freedom
- What can we learn online for free
- All leaders in the world are corrupt
- Will yoga get me fit