Can Blockchain Exist Without Mining?

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.

Is Mining Necessary In The Blockchain?

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 timing for creating new blocks and increasing the complexity of production as the block number increases.
  • Network users who create a valid transaction block-abiding by all the rules, will then receive a certain reward.
  • The block which has the most valid transactions is then added to the chain.

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.

Why Mining Is Not Ideal

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:

  • It takes a long time to test any transaction and add it to the chain. One transaction can take anywhere from ,one to thirty minutes, provided that the user established a normal commission.
  • Mining has become expensive. Over time and due to the growth of the network, more computing power is needed, which leads to an increase in the overall cost of this process on a global scale.
  • Blockchain with mining won’t be suitable for creating a system that could record over billions of transactions on a given day. The poor scalability is also raises some eyebrows.

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: A New Blockchain Platform

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:

  • Commission within the system is up to 0.001 USD.
  • The technical feature of the blockchain allows you bring the speed of operations to a different level.
  • The volume of transactions also increases because of its internal architecture.
  • Users won’t have to spend huge amount of money to upgrade their mining devices or equipment.

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.

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