CRYPTO… Crypto.. crypto! The demand for cryptocurrencies has taken over planet earth and now we’re aiming for the moon too! Cryptocurrency market capitalization has already surpassed $3 trillion. This is massive considering the price of Bitcoin in early 2022 was nearly double that of a year ago.
A lot more people are investing which means there has been pressure on developers to create more efficient and less environmentally damaging alternatives to mining..
Ever since the OG, the creator of them all – aka Bitcoin – was first introduced, consensus mechanisms or ‘methods of agreements’ have existed. The early days of blockchain have thrived upon these mechanisms. And they have always been synonymous with mining that requires proof of work - until now…
The method via which Bitcoin and several other cryptocurrencies mint or produce new coins and validate recent transactions is mining. It entails using a room full of computers placed worldwide to verify and safeguard blockchains. These in turn help create virtual accounts that record these transactions and verify them in a matter of minutes.
Computers that perform on that network are rewarded with new coins for their consistent contribution that keeps the whole system alive. It's a virtuous circle: miners protect and maintain the blockchain, the blockchain rewards coins, and the coins incentivize miners to keep the network safe and secure.
What is the significance of mining?
Mining is crucial not just to the security of Bitcoin (and many other cryptocurrencies) but also to pump new coins into circulation. It protects and validates the blockchain, allowing cryptocurrencies to operate as a distribution of networks without a single authority taking control. It offers miners an incentive to offer their processing resources to the network.
However, with rising concerns concerning the process of mining, cryptocurrencies have been moving away from their traditional ways.
Detrimental impacts on the environment
The rise in the price of these digital currencies has sparked a frenzy of demand, enticing millions of individuals to try their hand at crypto – without understanding or considering the environmental consequences.
Operations, like Bitcoin, that require a ton of energy for each transaction and ‘mine’ new coins are a major threat to the environment. The amount of energy required varies from crypto to crypto. Bitcoin being the OG, requires way more than usual and way more than some new players on the block like Caduceus ($CMP).
Is there an alternative?
In response to this criticism, Ethereum has taken the lead by switching from a proof-of-work (PoW) system to a proof-of-stake (PoS) system. This picks out one person at random to solve the block, lowering energy usage significantly by 99 percent.
The Caduceus Metaverse Protocol ($CMP) provides a mind-blowing solution that eliminates the need for mining while preserving all of the benefits – thus, making blockchain development and usage more accessible and convenient.
The Caduceus Metaverse Protocol ($CMP) is universal. It is user-friendly and its metaverse is designed to ease the integration of applications on the blockchain. Their primary goal is to rethink user experience and disrupt the internet from what it is today!
A new kind of storage proof is implemented on Caduceus. Thereby taking mining to a whole new level. Thirteen miners show the verifier the stored data on a particular device rather than having many copies of data on the same device.
Proof that the miner saved data for a specific period of time may be achieved using a mix of timestamping techniques. This is why, even if the miner is not online at some point, the time and space proof can be used to authenticate the data. Thus, heavily reducing the amount of energy expended!
Experts such as Caduceus have really been rethinking the mechanics due to the world's gradual shift toward ecologically friendly alternatives. As a result, mining will one day be seen as no longer the key to blockchain – but rather a primitive stepping stone to where it is today.
