Topic: The Problems With Cryptocurrency Mining: Energy Use & Centralization (Read 119 times)

Proof-of-work mining has a few serious problems. Every day, networks like Bitcoin, Dash, and Litecoin become evermore centralized. Industrial-scale mining operations that burn through electricity have put the power to control the networks in the hands of just a few. Individual miners have to rely on mining pools to compete. But mining pools themselves also act as a force for network centralization.

Mining is quickly becoming more of a problem than a solution. Even long-standing pillars of the community are speaking out against it. But a few young projects are working hard to out innovate these challenges, and each one has a different solution.Most mining today is done by massive, factory-style operations. A popular destination for such operations is Iceland. The government of Iceland has warned that they are running out of resources to feed the endless demand for more energy for mining operations. In fact, they have stated that if they allowed every investor or company that wanted to start such an operation to do so, they would be totally unable to keep up with the demand.

At the moment, there are some obstacles between different crypto chains. To eradicate these problems, we need to connect chains with multi-currencies integration. When it comes projects who are solving these problems, ChainX would be the best. ChainX is an Inter-chain hub for digital assets breaking barriers among assets in different chains and creating the ecosystem of multi-currency integration. ChainX is aiming to be the gateway of various inter-chain assets.

BTC has established the most widely accepted consensus, but its transaction efficiency is low; ZEC has enabled privacy protection, but smart contract is not incorporated; ETH has smart con-tract, but it cannot migrate to the PoS system; ChainX can transfer all assets across chains in a decentralized way. Chains that have connected with ChainX can enjoy asset connectivity with all chains.

The PoW algorithm issuing new cryptocurrencies based on the mining power is considered to be a relatively decentralized and fair distribution model, but it is still prone to be monopolized by big miners, leaving ordinary users no choice but to buy mining machine at high prices. The PoS chain generally has a large private offering or setting up a fund to issue cryptocurrencies. After the launch, it only issues additional tokens to users with voting power, resulting in new users resorting to the secondary.

Bitcoin mining uses too much energy

You may have heard this argument before, but Bitcoin mining is consuming an increasingly large percentage of the world’s energy. Today’s estimates suggest that mining operations are now consuming as much or more electricity than the entire nation of Denmark. While it’s not enough energy consumption to cause a global catastrophe, it is quickly becoming a serious problem.

Secondly, ChainX Token Economy

The token of ChainX is PCX, 21 million in total, with output halved every two years. No private offering or pre-mining will be launched. 20% of total PCX issuance in the first two years is distributed to the development team for research and development, after that all issuance will be distributed to the community. 90% of the total will be owned by the participating users through assets mining with only 10% for the founding team.

Thirdly, Asset is Power

We all know that the measurement of POW mining power represented by Bitcoin is the computing power, namely One CPU One Vote. The measurement of PoS mining power is the amount of coins, One Coin One Vote. ChainX pioneers the asset mining model of “One Asset One Vote”, which means that users can participate in ChainX Staking by simply depositing cryptocurrencies and they can get PCX. Asset value is the only voting power.

What’s More, the Reward Calculation !

Here is the recent calculation result.
SDOT PoS mining revenue (DOT mapping)
10,000 SDOT day theoretical income: 31.9 PCX
Converted to USDT: 510.4 USDT
Daily rate of return: 3.64%
Annualized rate of return: 1328.6%

How to calculate?
The PCX generated will flow to three reward pools.
1. BTC deposits pool
2. DOT mapping SDOT pool
3. Nodes’ PCX votes pool

In the ChainX system, voting is used as the computing power of mining. Voting is divided into “virtual voting” and “real voting.” Users are rewarded with PCX according to their voting weight or computing power.

BTC deposits :virtual voting power
After BTC is deposited, the virtual voting power is obtained according to the BTC/PCX average price generated in the Chain X currency trading system, and the voting power will have a further 50% discount.For example, if one BTC equals 100 PCXs and with 50% discount to be imposed, then depositing one BTC means 50 PCX virtual voting power.

DOT mapping :generating virtual voting power
After DOT is mapped into Chain X and becomes SDOT, SDOT will obtain the voting power of 0.1PCX.For example, if you map 100 DOTs, you can get the virtual voting power of 10 PCXs.

PCX voting (generating real voting power):
In the first cycle, everyone does not have PCX, but in the second cycle, users can vote PCX to their favorite nodes to get the corresponding PCX voting power.