Going Beyond The Quarry: How Cryptocurrency Mining Has Benefits Beyond The World Of Crypto
While there have been blockchains that have been developed, there has been an ever-growing population of miners associated with the various cryptocurrencies. It is a field of activity that has proven to be of increasing importance. Now, while this is the case, the way in which it works has a dramatic degree of potential for the entire marketplace. From discovering these digital prospects, validating the specific blocks to adding new ones. Mining has a far greater reach than we care to consider.
Looking Beyond The Digital Pickaxe Of Crypto Mining
While cryptocurrency mining is the reason we have the creation of new tokens within a blockchain which use Proof of Work consensus (PoW). Mining has a number of other functions within the network, such as protecting it on a more general basis.
It's with this particular attribute that makes it far more relevant and important when it comes to analyzing the supportive areas of mining towards the cryptocurrency world, especially when considering its usefulness for the Distributed Ledger Tech system as a whole (DLT).
On a figurative basis, crypto miners operate as gate keepers so to speak, serving to make sure that normal operations on the blockchain continue to run effectively. Each of these transactions is interlinked with one another through the various blocks. Once more transactions are added to this, or series of blocks, the chain increases in length.
In order to participate in mining on a particular blockchain, users are obligated to dedicate a certain degree of computational power (referred to as mining). These ‘miners' are then introduced to a puzzle that they have to solve. Once they have managed to do so, these miners are rewarded with a specific ‘payout', this usually consists of a certain kind of virtual token or cryptocurrency (depending on which crypto is regarded as profitable enough). With this, another block is incorporated into the broader chain, along with the transaction fees.
The most common kinds of cryptocurrency miners that we find ourselves thinking of are typically Bitcoin or Ethereum, being the most commonly known of them, this is just one of the ways in which the function of a miner can operate within this kind of network. But it's worth looking at the wider world of blockchain mining and what kind of benefit it has for the technologically diverse pool of miners, and society.
The Democratization Of Information & Data
With the eventual creation of the very first blockchain – Bitcoin – came the very first application of what we know now as the Distributed Ledger Technology system (DLT). This would be the beginning of what we see as being a digital space completely based around decentralization, or known by the more simplistic term which is the return of control of user data to the users; a repatriation of data.
The prospect of data democratization has sparked a great deal of interest from users and has continued to be a rallying point in terms of attention from many since bitcoin's creation.
From a theoretical standpoint, public blockchains serve as a fully open, yet decentralized network. As a result, data ownership is not held in a technological ‘Ivory tower,' out of the hands of the user as we see from the internet that we know. Data is a profitable business, and for every day that we, as individuals, spend frequenting the internet, we are generating brand new data which needs to be stored and transferred.
This is not exactly something we have at the forefront of our minds, but it's one the major data companies consciously take into consideration; actively buying, selling and using it to improve their systems, maximizing their profits as a result.
Our own lack of consideration, and companies broad interest in data that we are all the more surprised and, subsequently outraged by the emergence of data-related scandals. We're far more likely to consider the attack on our personal information as opposed to companies profiting from it, it's because we generally don't see its intrinsic value, companies do.
It's because of this that those in the world of blockchain technology are ardent fighters on behalf of a more democratic system for data creation, transactions, and storage. While the ideas are out there, there are few in the way of real use cases that can make this idea a reality.
Blockchain Mining For A Better World – The Social Impact
The reality is, in one instance is the fact that cryptocurrency mining can have a positive effect of spearheading good social engineering within the digital world. Examples of this positive approach include initiatives such as Lambda, which has been discovering certain kinds of use cases which can leverage the transaction validation system to be used up and above just creating new virtual tokens.
If we are to keep Lambda in our minds as one of the case studies out there, it's certainly likely for mining nodes to be responsible for more positive effects when it comes to the world of global business. News outlets such as Ethereum World had previously written about Lambda's successful launch of a blockchain that is dedicated to the more positive handling of data. This is achieved by the very first open-source Proof-of-Space-Time (PoST) protocol, those interested in finding out more about how this system works should check it out on GitHub.
Through this blockchain, miners are able to handle data, and considering the fact that it is directly linked to a dedicated blockchain, this means that these miners and the chain have the ability to handle large volumes of data at a time.
So far as we can think from the potential of blockchain technology, and mining by extension. Every sort of industry can dramatically be improved by leveraging it to some capacity.
This is especially true when considering the need for a strong foundation in order to develop products and services. We don't exactly need to imagine when it comes to some of these industries; we have seen its benefits come to fruition for shipping and transportation, the financial industry, as well as in the worlds of medicine and education.
When blockchain mining is done in an effective way, it can lead to remarkably positive benefits for miners in a reciprocal relationship between themselves and wherever it's applied. For a great number of people around the world, Cryptocurrency mining can become a career in its own right.
And while we may think that it is an overly expensive career to get into, it is pretty straightforward to do when you have an economical mind for equipment. All a user would need to begin with is a home-based PC, an internet connection, and a modest enough processing power.
Cryptocurrency mining means there is a new avenue for users to make a great deal of money by directly participating in the blockchain world, especially within a developing project where users are encouraged to take part in the token based economy. It also serves as a way to benefit the community at large by allowing their information to be mined, verified and safely stored. Mining itself can serve to advance a large number of industries simply through mining data.
For the moment, the outsiders perspective is this: that cryptocurrencies and blockchain, as a whole is a purely investment-centric, financial exploit for those involved. The reality is far more diverse and intriguing, mining provides a far greater return on investment that simply investing in an initiative that applied decentralized tech. So when considering diving into the world of blockchain, you can decide on the more commonly known route, or through mining.