One of the biggest features of the blockchain is decentralization, but anyone who knows bitcoin knows that there are many links in Bitcoin that don't fully implement decentralized operations, such as mining .
Now, as the relevant part intends to classify the mining industry as a phase-out industry , the cryptocurrency ecology seems to usher in a crossroads.
Logically speaking, mining is a hard support for the cryptocurrency industry and a way to link cryptocurrencies to the physical industry. A pass without a cost will evolve into a trading game that sells at a low price as long as it is bought at a low price.
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It is precisely because of the existence of computing power to maintain the security of blockchain software, just as the traditional Internet guarantees the normal operation of the business because of the existence of data, but the blockchain not only depends on the storage of the computer but also the computing power of the computer.
Mining is one of the basic characteristics of the blockchain industry. The resulting waste of electricity may not only come from the irrational allocation of scarce resources. If the consumption of resources can bring more benefits, the pay will become worthwhile, so the waste of electricity is only a superficial phenomenon. The deeper reason is that the cryptocurrency itself does not prove its value .
The technology blockchain that creates cryptocurrency also belongs to Internet technology, so blockchain technology also needs software products to carry, and the product returns to the user.
Software products should determine the value of their network based on the amount of installation and usage. From this, the impact of the entire blockchain industry is still very small, much like the Internet before the 1990s, when people mainly used the Internet. Email, and not many people use it.
Now, in the face of external doubts about the maintenance of consensus mechanisms in blockchain technology, what might be necessary to consider the blockchain without mining? If there is no mining shape, that is, there is no decentralization of the book maintenance, then the difference between the blockchain and the traditional centralized database is not too great.
The problems we have encountered in traditional databases are: who guarantees the authenticity of the data and how to make the process transparent . Because of these drawbacks of the traditional Internet, blockchain technology is highly regarded.
Assuming that the blockchain technology has a future and does not require computational power to mine, it can only design a new consensus mechanism. However, the most stable consensus has been verified. The problem of not changing the consensus in front of the digital currency becomes: How to take a new road after mining is prohibited?
It is very likely that the forced elimination of mining will accelerate the decentralization of the mining industry itself, that is, more people will join the maintenance mechanism for network stability in more areas.
In fact, the biggest obstacle to the development of Bitcoin is Bitcoin itself. The fundamental reason for Bitcoin mining is that the maintenance of the network can bring benefits to the miners, both material and spiritual.
The bigger problem facing Bitcoin now is its mining incentives halving mechanism. If you change its issuance cap, it will inevitably cause Bitcoin to face the fork and disappoint people's ability to store value.
Without changing the issue limit of Bitcoin, the next mining award will be halved . If the price of the mine does not rise to expectations, the miners will naturally lose interest, and the departure of the miners will lead to a decline in the security of the Bitcoin blockchain network.
The best case is of course that the value of Bitcoin and the computing power are rising together . The effect of computing power in maintaining network consensus has been verified. Now it is time to verify the economic model of the halving mechanism.
(Source: New Finance)