PDF Publication Title:
Text from PDF Page: 027
Bitcoin, Blockchain, and the Energy Sector Appendix. Select Algorithmic Approaches to Crypto-Mining As the Bitcoin network’s energy consumption grows, some have questioned whether the proof- of-work (PoW) algorithm that is used by Bitcoin is sustainable. Many alternative algorithms exist.134 PoW and two approaches that are conceptually less energy intensive—proof-of-stake and proof-of-authority—are discussed below and illustrated in Figure A-1. Proof-of-Work Under proof-of-work (PoW), miners are presented a difficult computational problem, or puzzle. PoW identifies a numeric value (called a nonce), which is used to generate an authenticator (hash value). The hash value ensures a user that the block of data sent has not changed. Hashes are determined by submitting the data through an algorithm that will output a string of characters. By inserting the nonce into the algorithm, miners seek to change the hash value. Identifying these valid nonces and hashes is computationally intensive, and the essence of mining.135 The security properties of hash algorithms are such that a miner tests nonces until a valid hash is found for a block.136 Generally, by solving the problem or puzzle, miners win the opportunity to post the next block and possibly receive a reward for doing so. In the case of Bitcoin, miners who create and publish new blocks in the blockchain are rewarded with Bitcoin. Once the problem is solved and a valid hash is identified, the miner announces it to the community. Other users can validate the solution immediately—without going through the resource-intensive computation process—by having transparent access to the entire history of the blockchain’s transaction ledger.137 Once the majority of the community validates and confirms the block, the next block can be added to the chain. Proof-of-Stake Proof-of-stake (PoS) depends on the community’s actual stake in the currency instead of consuming energy in a race to be the first to solve computations. The more currency a “forger” (i.e., the PoS term in lieu of the PoW term “miner”) holds, the more transactions can be validated. This method skips the energy-intense hashing race. All of the currency is already created, and the amount is stagnant. Forgers earn currency through transaction fees for building a new block (and thereby validating a transaction). A new block is determined by the level of stake (e.g., wealth) a forger has invested in the cryptocurrency. Thus, forgers put their own cryptocurrency investment at risk and therefore would likely only build a block for valid transactions. If a forger added a block to the blockchain based on an invalid transaction, it would risk losing its stake. Potential energy reductions from use of PoS are leading to changes in some major cryptocurrencies. Ethereum—a platform that uses a cryptocurrency called Ether—plans to move 134 For further information on common algorithms, see Merlinda Andoni, Valentin Robu, and David Flynn, et al., “Blockchain Technology in the Energy Sector: A Systematic Review of Challenges and Opportunities,” Renewable and Sustainable Energy Reviews, vol. 100 (2019), pp. 148-151. 135 For an example of how this works see http://blockchain.mit.edu/how-blockchain-works. 136 Fan Zhang, Ittay Eyal, and Robert Escriva, et al., “REM: Resource-Efficient Mining for Blockchains,” Proceedings of the 26th USENIX Security Symposium, August 16-18, 2017, p. 1429. 137 Ibid., p. 1429. Congressional Research Service 24PDF Image | Bitcoin, Blockchain, and the Energy Sector 2019
PDF Search Title:
Bitcoin, Blockchain, and the Energy Sector 2019Original File Name Searched:
R45863.pdfDIY PDF Search: Google It | Yahoo | Bing
NFT (Non Fungible Token): Buy our tech, design, development or system NFT and become part of our tech NFT network... More Info
IT XR Project Redstone NFT Available for Sale: NFT for high tech turbine design with one part 3D printed counter-rotating energy turbine. Be part of the future with this NFT. Can be bought and sold but only one design NFT exists. Royalties go to the developer (Infinity) to keep enhancing design and applications... More Info
Infinity Turbine IT XR Project Redstone Design: NFT for sale... NFT for high tech turbine design with one part 3D printed counter-rotating energy turbine. Includes all rights to this turbine design, including license for Fluid Handling Block I and II for the turbine assembly and housing. The NFT includes the blueprints (cad/cam), revenue streams, and all future development of the IT XR Project Redstone... More Info
Infinity Turbine ROT Radial Outflow Turbine 24 Design and Worldwide Rights: NFT for sale... NFT for the ROT 24 energy turbine. Be part of the future with this NFT. This design can be bought and sold but only one design NFT exists. You may manufacture the unit, or get the revenues from its sale from Infinity Turbine. Royalties go to the developer (Infinity) to keep enhancing design and applications... More Info
Infinity Supercritical CO2 10 Liter Extractor Design and Worldwide Rights: The Infinity Supercritical 10L CO2 extractor is for botanical oil extraction, which is rich in terpenes and can produce shelf ready full spectrum oil. With over 5 years of development, this industry leader mature extractor machine has been sold since 2015 and is part of many profitable businesses. The process can also be used for electrowinning, e-waste recycling, and lithium battery recycling, gold mining electronic wastes, precious metals. CO2 can also be used in a reverse fuel cell with nafion to make a gas-to-liquids fuel, such as methanol, ethanol and butanol or ethylene. Supercritical CO2 has also been used for treating nafion to make it more effective catalyst. This NFT is for the purchase of worldwide rights which includes the design. More Info
NFT (Non Fungible Token): Buy our tech, design, development or system NFT and become part of our tech NFT network... More Info
Infinity Turbine Products: Special for this month, any plans are $10,000 for complete Cad/Cam blueprints. License is for one build. Try before you buy a production license. May pay by Bitcoin or other Crypto. Products Page... More Info
| CONTACT TEL: 608-238-6001 Email: greg@infinityturbine.com | RSS | AMP |