April 18th, 2018
Millions of people around the world perceive that the concept of “mining” for Bitcoin and blockchain are something similar, if not the same. However, Blockchain technology can exist without digital currency mining, but not many are currently aware of this. How is it implemented? Why do we need mining and how does it work? These are some of the common questions asked by digital currency users today.
To make the whole concept easier to understand, we need to assume that a group of developers decided to launch their own digital currency in a blockchain mining system. As the digital coin doesn’t have any centralized storage or other issues, all users have an equal right to the network. It becomes important to introduce a system that will ensure the irreversibility of transactions and possibility of verifying the validity of every member of the network. This mechanism is called mining. With this process, the user of the distributed network is able to check transactions and add it to the blocks on the distributed ledger.
In addition, Bitcoin’s algorithm has certain conditions, for instance:
The creation of new units and the verification of transactions are all stimulated by the network through accrual of awards. The use of cryptocurrency namely, hash in mining, allows a limit in the growth of a blockchain by introducing complex calculations. Moreover, the mining issue is a digital currency issue. Credit should be given to those engaged in mining, because of their work, the number of digital coins in circulation is increasing.
It may seem that everything within the system is flawless – emissions are evenly distributed, all transactions are properly checked, etc. But the question is why is blockchain, or rather Bitcoin mining, causing doubts? Here are some of the reasons this happens:
Is it possible to overcome these shortcomings, preserving the quality of blockchain that is used by people around the world? Definitely! Already, there are many projects that are offering new approaches to blockchain technology without bringing into play the concept of mining. One of these projects or ideas is: Credits.
Credits is a blockchain platform, unlike other popular digital currencies, Credits functions without mining. This comes with a lot of advantages too, these include, but are not limited to:
This new platform, Credits, is a good example of how the blockchain system can exist without mining. This new technology comes with great aspects, and in the future it will be able to turn the crypto exchange industry upside down.