Current currencies appear in the eyes of investors as the key to heaven, especially when they argue that they help replace greedy mediators, from their point of view such as banks and financial institutions that work in a central system, with smart and decentralized contracts provided by the "Blockchain" technology, which will lead to the emergence of servicesEffective and innovative financial, called "Defi" (Defi).Economist says that the foundations of these perceptions are destroyed.The Blockchain technology may be an accomplished technical work, but it is also very complicated, and it needs huge quantities of electrical energy in order to be produced currencies..And without some believing in the issue of decentralization it enjoys, and then about the control of the regulators, some currencies may be unexpected and and controlled in a way.Despite the length of the currencies, the encryption developers are trying to completely overcome the idea of comparison between several options in this technology and the production of currencies that consume less energy.
Supporters of encrypted currencies believe that it is not necessary to trust the banks, because they do not work for the benefit of customers all the time, as banks maintain large data rules and have information about customer and money accounts.They believe that despite the confidence of depositors that these institutions are working for their benefit, but sometimes the banks may not do this, and their investments may collapse, or the depositors' accounts are frozen at the request of governments.
Supporters of encrypted currencies are promoting that the "Blockchain" technology sets the basis for another type of financing that avoids these problems, as the rules of user accounts will not be kept by a central authority, but by their computers..They defend coded currencies that the account can only be frozen if a specific majority of those who keep the Blockchain codes agree to do so.
As for the "Blockchain" technology used to mining the Bitcoin coin, hundreds of thousands of specialized computers called "miners" are involved in solving sports equations, and the computer that finds a solution first alerts the rest of the other devices.If the result is confirmed, it is updated "Blockchain", and it is paid, as the value of the single sports equation is 6.25 currencies, and whenever the servers want to increase their chance to solve mathematical equations, mining workers are forced to increase the number of servers that need electric energy to operate them.
This work consumes energy greatly, and according to some estimates, electricity production is approaching to mining Bitcoin that is consumed by a country like Italy.Also, the more computing strength, the greater the chance of resolving equations and mining in training, the increased profits and the ability to expand.
Hence the endeavor to create the best "Blockchain" techniques, including the technique of Xia, a system that depends on the idea of proving the place and time through digital storage, where the mining process depends on the amount of the area of storage of the hard disk designated in the computers instead of the treatment force that consumes electricity,As with Bitcoin.However, it is not yet clear whether Xia will prove that it is more sustainable and less central than Bitcoin, especially if it is widely used despite its consumption of electrical energy much lower to mining it from Bitcoin.
Some criticize the mining of encrypted currencies, and they see that the centralization of financing is inevitable, even if it is not the case, it must be stopped because of the inefficiency of its energy use..One of the mining operations, David Rosental says that many resources are wasted only to end up with a decentralized system controlled by less confident people than those who run traditional financial institutions..For some, a few centralization may be just a price for other benefits of blockchain networks.Kevin Websbach of Warton College at the University of Pennsylvania in the United States says that openness in the field of "Pocchin" makes it easy to develop innovative financial services..However, the pursuit of a better block shows one thing, is that the encryption paradise is not free..
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