The Major Crypto-Mining Challenges and Ways to Overcome Them
The crypto-verse comes along with a set of jargons and terms that might evade the consciousness of individuals who do not have much to do with this sphere. After all, the cryptocurrency was an affair that was only dealt with by investors who had their teeth sunk in deep into the financial sector. This has been the case for a long time now, and though the scenario has refreshed a bit, there is still a long way to go. Facebook, with Libra, has been trying to get cryptocurrency into the domestic realm. But, there are still obstacles that must be overcome and technicalities that people must learn if every individual is to use cryptocurrency in their regular lives. One such problem that we are going to be discussing about is the process of crypto-mining. We shall start by providing a working definition of the same and then move on to understanding the challenges that inundate the fore. Once we are clear on the various challenges in crypto-mining, we can talk about the ways to overcome the same and make cryptocurrency a much feasible option for more number of people around the world.
What is Crypto-Mining?
For those who are still not aware of the cryptocurrency, here is what you need to know. The cryptocurrency is a digital form of currency and is underpinned by the blockchain technology. The currency has made quite some stir in the air and investors have been investing significantly in the various cryptocurrencies given that the chain through which the transactions occur is secure and safe. There are low risks associated with the tampering of data, and once the transactions are deemed complete, every data associated with it becomes immutable. This is laudable since this minimizes the risks of money-laundering and theft of sorts. These currencies can be used directly from the wallets in which you store them or you could even learn about virtual debit cards and use them to transact in these currencies. Now, crypto-mining is the process in which miners verify the data that flows through these blockchains and earn crypto rewards in return. And like every other type of mining, crypto-mining requires the miners to work out a set of mathematical computations to be able to release the currencies into the chain.
The Challenges of Crypto-Mining:
Crypto-mining is quite a lucrative venture, but there are a few challenges to this domain that you must understand and overcome if you are to make a career out of it. Here are a few major challenges that you must know of before taking it up as a career-
The High Cost of Energy-
Crypto-mining calls for a high output of power since you need to combine several ASICs to solve a mining problem. Thus, this high output of power shall, by default cost you a dramatically high electricity bill, which might be too taxing on your pockets.
An alternative to this problem is using protocols that are fashioned to use a less amount of power in solving these mining problems. The Proof of Stake (PoS) consensus is one such protocol that stakes crypto to secure the network. The usage of power in this protocol is conveniently less and thus, does not hurt your pockets.
Vulnerabilities in the Crypto-Sphere
The other major challenge that the crypto-mining faces is the various vulnerabilities associated with the domain of cryptocurrency. Cryptocurrency is a decentralized affair which helps in minimizing the risks of hacking. But, hackers are smart enough to devise ways to make in into the almost impenetrable blockchain network. This thus, makes the domain vulnerable to various threats like crypto-hacking and crypto-jacking. Crypto-mining, in such cases, can be tough to get on with since the danger of a potential data breach always looms large.
One way to overcome this problem is by using the platform of DigiByte, which is a hybrid of five different protocols used in the blockchain network. The mélange of the five protocols makes the blockchain network stronger as ever and makes it difficult for hackers to hack in.
The Decentralization of Cryptocurrency-
Decentralization happens to be one of the primary reasons why more and more people are turning to the crypto-sphere. But, on deeper introspection, you shall see that this very perk of the cryptocurrency can also lead to trouble. Decentralization has given the crypto miners the agency to manipulate the way ASICs are being designed and this is going to result in an eventual centralization of crypto-mining.
The ways in which this problem can be tackled is if there is a complete decentralization of the ASICs, and by devising a new hash algorithm that shall eliminate all the existent ASIC miners.
Wrapping Up:
The crypto-sphere has the potential of growing exponentially and penetrating every sector of life, if only proper solutions and alternatives are being meted out for the challenges that this domain faces. Once these issues are addressed, and the impediments are overcome, it shall not be long before the cryptocurrency replaces the fiat currency and make its presence felt in every way possible.