Mining machine mining and mining BCH energy saving more than 40% than BTC
Mining has always been criticized. Some people think that mining is a meaningless time and a waste of energy. However, some people think that the energy consumed is converted into the value of cryptocurrency. From the point of view of the market value of cryptocurrency, the cryptocurrency that can be mined is indeed more valuable than the cryptocurrency that cannot be mined.
According to the coinmarketcap website, there are currently 2,125 cryptocurrencies on the market with a net valuation of approximately $140 billion. Statistics at the end of the first quarter of 2019 show that the cryptocurrency that can be mined is a large value among many cryptocurrencies. The market value of the top eight cryptocurrencies that can be mined accounts for 68% of the total market value. Among the top ten cryptocurrencies in the market capitalization, there are four types of cryptocurrencies that can be mined, including BTC, ETH, LTC and BCH. Their total market capitalization is about $91.7 billion, accounting for 65.5% of the total cryptocurrency market value.
A large part of these mineable cryptocurrencies are cryptocurrencies that use PoW as a consensus algorithm and currency issuance mechanism, such as BTC, BCH, LTC, and so on. The PoW-based blockchain project is essentially a market economy model, and the use of the POW mechanism solves the integrity problem of cryptocurrencies, such as double flowers.
The POW mechanism has many advantages. Since the PoW mechanism operates on two foundations: full and open competition, fair and reasonable incentive mechanism, this makes POW a decentralization guarantee from the governance level, physical network level and market operation level. However, some reasons may cause market failure, resulting in the centralization of the PoW mechanism, the main artificial barriers to set up, price distortion caused by human interference, insufficient incentives and path dependence.
Compared with the centralized mechanism, the decentralization mechanism has three major advantages: the certainty of the rules, which makes it impossible for any single authority to change the social contract that has been achieved; the strength of the network, which means that the single node shutdown will not affect The network is running, and no organization can easily shut down the entire network; finally, the security of funds ensures that no central organization can freely freeze and control user transactions. This is why the cryptocurrency market has always advocated decentralization.
For BTC and BCH, SHA256 is the same because its mining algorithm is identical. In order to improve mining efficiency, most of the current market is using ASIC mining machines for mining. To a certain extent, under the PoW mechanism, the emergence of ASIC mining machines is inevitable, and ASIC may be solving the problem of centralization. The design threshold of ASIC is low, the patent barrier is small, and it is easier to achieve full competition to achieve decentralization. the goal of.
Although BTC mining and BCH mining are similar in many places, there are many coincidences in the mines that support them, such as BTC.com, Antpool, Bitcoin.com and Viabtc. But a new survey by developer Jonathan Silverblood says Bitcoin Cash (BCH) is 40% more efficient than Bitcoin Core (BTC) in terms of energy consumption. He analyzed some key data related to the mining concept on these two chains, and finally concluded that the transactions and operations on the BCH blockchain are much cheaper than BTC, and the energy consumption of BCH per transaction is better than BTC. 43.1% lower.
If the BCH block is fully used for payment, since the BCH block size can be expanded, the energy cost per transaction will be as low as $0.01, making the transaction cheaper; and if the BTC block is filled by the transaction, the transaction The energy cost is $5.97. These data can reflect the higher energy efficiency of BCH.
Jonathan Silverblood does this research because he believes that in terms of energy efficiency, people are always talking about bitcoin cash. Although it is superior to BTC in all measurement metrics and has better potential, it is still not implemented. This comparison is shown to give users a more intuitive feel, and hopefully trigger more debate about what energy efficiency we should strive to achieve.
Regarding the source of these data, Jonathan Silverblood also explained that the numbers and hash estimates labeled "Measured" are from Blockchair's API. Those assumptions are random, but have been adjusted based on feedback from miners and other knowledgeable people, so the current display should be closer to reality. The rest is just basic mathematical operations. The BTC 2MB block size used in the calculation is an estimate of Segwit supporter Jimmy Song.
Although this is currently a simple model, the results prove that having more transactions in one block means less energy wastage. Once we expand the block size beyond gigabytes, the price we pay today for energy and e-waste will be reasonable. From this perspective, the expansion of BCH is also very helpful for improving energy efficiency.