The Future of Bitcoin and Blockchain Chapter 3:
Central Authority Points Mining and Stocks Central is the most gentle stomach of Blockchain in the spotless use area. While the mining system is defined as unnecessary energy waste by countries and various organizations; the stock market is causing the decentralized system to take shape in the hands of a central monopoly. Let's start with a detailed explanation of mining.
What is Mining?
Mining is also a concept that consists of phases of mining, confirming transfer transactions made in the coin market, performing transfers and generating new coins.
In Blockchain, the pool of miners, which provides the fastest block production and validates the transfer process, gives a share of the fee. The difficulty levels increase in each newly created coin block. Because it is based on the analysis of complex mathematical algorithms based on mining with powerful hardware. As a result, mining needs computers with very powerful hardware.
At this point, various mining types are antagonistic. ASIC mining, GPU Mining, CPU mining and so on. Among them, ASIC mining is the most efficient excavation process, but we can say that this method is introduced by large companies in a single line. These formations, which excavate with a large number of machines, occupy a larger share than cake, and the income of the individual miners also falls for this reason. The most curious topic about mining, for example, if going to Bitcoin specifically: has a limited total coin of 21 million. Will mining be done when all the coins are dug and released in the block chain?
The answer to the problem will vary according to the developments that may occur in the future; It will not end. Because the miners will still be needed to verify the transfer operations. Since no new blocks can be produced, it will not be as profitable as it is now.
Why Mining Can Be a Problem?
So far I have briefly covered basic information on mining. Many investors are actually explanatory because they have little knowledge of mining, a very important concept for Blockchain. If it is to return to its original position, the mining center is a stoppage to the Authority in Blockchain. Mining can be banned by authorities, can take on environmentalists because of excessive energy savings, needs instruments from the monopoly of the central authority. For this reason, one of the problems that Blockchain needs to solve is to produce alternatives to mining or to turn to different methods. In fact, some projects are applying different ways for this. Proof Of Stake, which means that coins locked in some wallets are accepted as transaction confirmation points and paid to the owners of those wallets for the fee fee. There is DPOS, which we have been hearing more names lately. It is based on the payment of the first 20 wallet fee commissions and the acceptance of the first 100 wallets as delegates. If these and similar methods can also be associated with the release of new coins in the block chain, a soft snow like mining will be strengthened.
Central Stock Exchange Issue
As I mentioned at the beginning of the chapter, the easiest and biggest way to reach the end user is still the central stock exchange. The stock market is also a problem to be solved for Blockchain because a very large part of these exchanges is highly vulnerable to hacking attempts. We are faced with a great hacking event almost every month, even from this point of view. The biggest hacking initiative in history is mt. For example, blockchain investors are still suffering from the Gox incident. Every investor in every wallet that tries to pay the owners by selling the bitcoins in the hands of the scammers who are being called to the damages is damaging millions of dollars. Even this example is sufficient to explain the subject, but we will continue to do so.
As the central authorities of the Commodity Exchange can operate according to the rules, one and the shutters can be closed. In this case, thousands of users remain victims. This creates trouble even if the shutter does not close. Binance, for example, had to move from Hong Kong and headed to Malta as a team. There are lawsuits filed about relocation and other country laws, but their fate is not clear yet.
In many ways that we can write long, decentralized, in other words, the use of DEX stock market seems to be widespread. DEX wallets also have a variety of hacking difficulties. Nevertheless, it is definitely worthwhile because it removes the dependence on any central authority. On the other hand, the upper level of the central stock exchanges will be Atomic Swap. If the Atomic Swap can have a structure that all of us can use, certainly safer shopping will be possible; the pressure of central authority in price fluctuations will disappear. Detailed information about Atomic Swap can be found here.
Central Authority Points Mining and Stock Exchanges
As you can see, Blockchain has an infrastructure that has not been able to complete its formation although it promises a more secure internet, shopping, smart contracting experience with a decent structure. Since every point that can not be completed will come up as a problem in the future, it is necessary to know these problems and struggle to solve them. The more conscious the number of users it reaches, the more difficult it will be to solve the problem, so I think it is important for everyone to be aware of the bitcoin or subcodes in the corner.
You can reach the previous articles of the series which will continue here and here.