Ethereum: Why can’t I use supercomputers to extract all bitcoins?
As a newly arrived in the cryptocurrency world, you may have heard of Bitcoin and Ethereum, two of the most popular digital currencies on the market. You have probably been prevented from the concept of “mining” bitcoin, where individuals use strong computers to solve complex mathematical problems in exchange for new bitcoins.
In this article, we will deepen why the use of supercomputers to extract all bitcoins is not possible and what is behind this limit.
Problem with Mining
Mining bitcoin requires a significant amount of calculation power. The process involves the solution of complex mathematical equations, known as “hash functions”, designed to validate Bitcoin network transactions. To solve these equations, miners use specialized computers that perform complex algorithms. The energy required to perform these calculations is substantial.
Currently, the total hash rate (the number of calculations a computer can run per second) in the Bitcoin network has reached more than 200 icahshes per second (EH/s). This is an astronomical amount and is what allows the creation of new bitcoins through mining.
Why supercomputers are not enough
There are several reasons why supercomputers cannot be used to extract all bitcoins:
- Energy Consumption : Even with extremely powerful computers, the use of a significant portion of the world’s energy supply is not possible.
2.
- Limited scalability
: As the bitcoin network increases, as well as the demand for mining energy. Increasing the hash rate would require stronger computers, which leads to higher consumption and energy costs.
Other methods to ensure the network
Although traditional mining is the most accepted method to ensure the bitcoin network, other approaches are explored:
- Sabbath Proof (POS)
: In this consensus algorithm, validators are chosen according to their “stake” (ie the amount of cryptocurrency they have). This approach is less energy consumer and does not require so much computing power.
- Delegate Proof (DPOW) : similar to Pow, but validators are selected based on the “delegate” status (ie the amount of cryptocurrency they have). This method has lower energy consumption than traditional mining.
Conclusion
Although it is tempting to imagine a world where supercomputers can extract all bitcoins, this is not possible due to significantly necessary calculation power. Energy consumption and costs associated with the provision of massive computing platforms would exceed any potential benefits of using Bitcoin supercomputers. On the other hand, alternative consensus algorithms such as POS and DPOW offer more durable and efficient solutions to ensure the Bitcoin network.
Sources:
- “Ethereum 2.0: A new standard for Vitalik Buterin’s intelligent contracts and applications”
- “Bitcoin energy consumption” by Coindesk