Bitcoin weaknesses
Bitcoin is the world’s first blockchain network and is considered to be the most popular cryptocurrency in the world. Bitcoin’s creator wanted no bank or financial institution has the responsibility of the ledger and transaction registration in its own peer to peer network. For this reason, it suggested the use of a proof-of-work mechanism to avoid flaw, fraud, and double spending, which at the time was a new and innovative method, but now it has to be reformed and rushed to do so.
The study, which was carried out in October 2018 on global climate change, showed that in less than three decades, Bitcoin mining could increase global temperatures more than 2 degrees Celsius. Digiconomist has also published an article that estimated the power consumption of Bitcoin’s transaction is approximately two hundred thousand times (200K) more than the Visa card’s transaction. These figures are really shocking and it should be noted that if we wanted to record and store all of the world’s Bitcoin transactions in a centralized network, certainly a local medium bank would be enough to do that.
The fact is that the power consumption of a country with ten million populations is used to record and store Bitcoin’s transactions. However, the total volume of this data is less than a typical laptop’s hard drive, and in terms of environmental protection, the power consumption is not in proportion to the work. It seems, however, that the blockchain concept’s novelty and the use of the term “Mining” have been a cover for the disproportion.
What has to done?
One — First of all, we need to know and believe that Blockchain technology and especially Bitcoin have not yet been able to solve their main problems. Ten years ago, the POW(Proof-of-work)mechanism for a pilot project and the launch of the first decentralized network was a great idea. But this method for long life needs to be corrected, and it cannot dedicate the power consumption of a country with ten million populations for Bitcoin’s transactions for years. It’s extreme selfishness and not fair. The people around the world are involved with many environmental problems, and most of them are poor. Indeed, it is necessary to first try to rectify the Bitcoin network Instead of finding strange and fancy utilization for blockchain technology.
Two — One of the suggestions is to launch a parallel network with bitcoin that has less power consumption. This new network, for example, can use the delegated proof-of-stake mechanism like the EOS network. Gradually, we must ask all Bitcoin owners to get the equivalent of their Bitcoin from the new cryptocurrency, and their initial Bitcoin should be burnt simultaneously. It should be noted that this issue is different from the fork.
Recently, similar work is done by the EOS network, and the achievements of the EOS community can be a good experience. When BlackOne wanted to launch its EOS ICO, there was still no cryptocurrency nor EOS network. The company decided to temporarily use an Ethereum ERC 20 token to fundraise. After the EOS cryptocurrency and EOS network were set up, the ERC 20 tokens that were held by anyone were burned, and at the same time, the amount of EOS cryptocurrency equivalent of the burned sums was paid to the same person.
Three — Another suggestion is the reduction of miners’ activities from 24 to16 hours per day. Certainly, there must be no block producing twice a day while each break lasts for four hours around the world, and recording transactions wait for the official start of the miners’ activities in the world. In such a way, more than 30% of the power will be saved, which is really a big number. The closing hours of miners can be at times when the least number of transactions occur.
Four — Our main proposition is to replace miners and block producers with some sort of smart contract. This method is the achievement of our small collection ‘’soliset.com’’ and we call it Smart Blockchain. The power consumption and the scalability of Smart Blockchain’s transactions will be similar to Visa Card’s transactions. Fortunately, by using this method, huge power consumption, and Bitcoin problems and all other cryptocurrencies will be solved at the same time.
Smart Blockchain
To learn more about the features of Smart Blockchains and more information on this topic, you can read these Three articles:
We’re eager to receive your comments.
Somayyeh Gholami
Mehran Kazeminia
