Bitcoin Oil Claims to Aim at Resolving Bitcoin Mining’s Energy Guzzling Issue by Going Green
The Bitcoin Oil Company has recently just made public, its plans to produce a new Bitcoin fork and also spawn crypto assets known as OIL. Furthermore, the company also plans to solve the problem of energy consumption that Bitcoin currently has.
Hannah Paddock, the company’s Chief Marketing Officer, said:
“We have an opportunity as Bitcoin Oil to mitigate, for the first time, a significant concern that cryptocurrency users have regarding a large amount of electric energy consumed by crypto miners.”
The Energy Problem
Currently, miners of many different cryptocurrencies compulsorily have to satisfy a procedure called Proof of Work or PoW. The Proof of Work is best explained as intricate problems that must be dismantled in order for these miners to authenticate transactions and receive mining rewards.
Bitcoin In Today’s Market
For a long time, cryptocurrencies have largely been unfettered and uncontrolled as they usually employ decentralized modes of operation, unlike other currencies within the regular banking structure. This, mainly means that it would be almost impossible for crypto and its teeming grids and networks to be halted.
However, the company is now of the stand that the cryptocurrency should not be classified anymore as decentralized and away from the control of the government because the majority of the mining framework and votes are in the hands of China, who is referred to as
“Bitcoin’s most powerful adversary.”
Alternative To PoW
Today, the only way for PoW mining to continue is for the cost of energy to drop very significantly. Ethereum, however, has started a process that seeks to move them from the PoW way to a PoS framework known as Casper. This is a big deal for the PoS algorithm because Ethereum is the second most widely operated cryptocurrency.
Unlike PoW, miners on the PoS algorithm are not compelled to dismantle difficult puzzles just so they can secure their transactions. Rather, other economic-based inducements are used to protect the security of their networks. This is one of the most effective ways of dropping the volume of energy used in mining on the PoW framework.
According to Hannah Paddock,
“If Ethereum’s successful algorithm change in Q1 2019 means anything, it should be a clear signal to the crypto community that PoW cannot persist in its current state. We believe PoS could avert Bitcoin from self-sabotage, which is one of the reasons why we believe Bitcoin Oil’s PoS-based technology will be superior to Bitcoin's current PoW model. Bitcoin Oil will remain vigilant in the improvement of Bitcoin and proactive with our solutions,”