#NaijaKnowledgeX: May 27, 2021
Dr. Joe Abah
One thing I don’t understand enh? Elon Musk said people are expending too much energy to mine Bitcoins and it risks damaging the environment. Are they flaring gas or something to dig for these Bitcoins? #NaijaKnowledge
Dr. Joe Abah
Good morning Dr, To understand #Bitcoin 1st understand concept of blockchain The idea is to make everyone a have a record of debit/credit on everyone. So you can transact with even strangers with trust aniebenhouse.com/blockchain-tec
This article explains to the layman
These databases (nodes) require computations per nanoseconds to update all activities Math algorithms created and solved to create new ledgers that’s needed for transactions Also, powerful algorithms are written by computers to secure from hackers The 3 consumes electricity
Mining need steady electricity, and mostly many miners go to an isolated places to do the job and as such can’t connect with the electricity from town, so they have to power their equipment mostly with coal which is cheaper but yet have a very high environmental challenge.
Sir watch this, This is what he meant by consuming too much energy. If you see the videos people upload owning mining factory’s that generates crypto currency’s, you be shocked.
For mining to take place, computers in the network need to solve complex computational problems. The first computer to solve it is rewarded with some btc. In order to be fast, miners add external hardware to their comptrs These hardware (thousads of them) consume a lot of energy
Bitcoin works on the proof of work consensus. This means that for nodes to commit blocks to the ledger, they need to solve complex mathematical problems. These nodes are then rewarded with bitcoins for solving these problems (this is what is called mining). 1/2
Because it works on proof of work, these mining rig owners use super computers to solve these problems (to increase their chances of earning bitcoin as reward) and these computers require huge energy to keep running. More like that of server farms.
Grandpa you for ask this question for Saturday morning or Sunday evening, when you go fit relax and get more confused The whole thing is so complicated and abstract, I bet you’ll keep having more unanswered questions. Mining, blockchain, ledger, transaction integrity etc
Dr. Joe Abah
I think I understood your question in this manner, how possible could energy (power energy) consumption affect the environment… Well, I think he’s looking at the long run of mining #Bitcoin which consumes a lot energy and with continuous increase in the difficulty of mining…
Its the energy consumption and output of the machines used.. Bitcoin mining involves powerful computers attempting to solve the complex mathematical problems of the Bitcoin algorithm. Solving these problems helps keep the blockchain ledger and network secure trustworthy.
The question is why are they solving questions? I understand the questions are randomly generated, but to what use are the answers? How do these answers aid the blockchain/bitcoin? Lastly, if people keep mining/producing btc, eventually it should get saturated & value will crash
I’ve seen a couple of videos on YouTube and there’s so much heat generated in the room where mining takes place. It’s a technological process but the devices needed to set up such places takes so much energy. Like this picture here, the graphics card generally so much heat…
From all I have read here and the position Elon have taken, it simply means crypto is still far from being the currency of the future. Something else perharps, less complex than crypto might replace it. I bet, Elon is already working on a simpler substitute. Wait and see.
For like a month now, people have abused me for saying Crypto isn’t currency for the Future. Even starting up your own currency is so damn easy and doesn’t look like regulation will do so much for the currency. I heard in a day, you can have over hundreds of new currencies
Now see this video, dude is not even owning a factory like the previous video sent earlier, his just setting up his own little base station with little powerful pcs, and cooling Ac, oya imagine the energy consumption having like 500 of this in lagos Lekki phase 1 or Abuja FcT.
The fundamental processes in digital token transfer and minting is termed mining. These is done using supercomputers, much like what you see in Google server rooms and the power consumption is huge especially if it utilizes coal for electricity generation.
BTC is sometimes attributed to Gold, a commodity for store of value, likely why the term mining is used to describe it production. So, when miners successfuly manage a block of transactions by solving complex mathematical problems, they are rewarded with BTC by the system./1
Na who dey set all the mathematical equation?
Mining is simply validating a transaction in order to get rewarded in $BTC. The miners validate and store transactions/records by hashing (encrypting) it on a ledger (the blockchain). After every successful validation and hashing, the validator/miner earn some rewards./1
2/Now, the validation and hashing business is very competitive and it requires computers that can process information as fast as possible. Computer with high processing power hash faster and they tend to consume a lot of energy. #NaijaKnowledgeX
I’ve learnt loads under this thread. Kudos to everyone. I still have questions though. Bitcoin is mined when miners solve some complex mathematical algorithms with the aid of some special supercomputers. They get paid in Bitcoin after proof of work.
I also read that it’s mined when people who specialize in monitoring transactions get rewarded in Bitcoin for their efforts. My question is that are both true?