Bitcoin [BTC] is likely to gain an impetus in the advancement of its technology with PoWx’s adoption. The updated technology known for the “optical” feature of the proof of work leverages laser technology with higher level of energy efficiency. This attribute forms a fundamental factor for carrying out the process of crypto mining. Previously, BCFocus has reported that 21% of UK Millenials are inclined towards this cryptocurrency and prefer to make investments in Bitcoin [BTC] to real estate.
PoWx is a non-profitable organisation that has been recently launched on this week with an intention to substitute proof-of-work with superior algorithm. The focus of the agreement has primarily been to make the transactions valid. With this initiative, it is expected to “fix” the issues pertaining to mining activity for simplifying the process of participation by the people. This is due to the preventive nature of the barriers for making an entry.
Bitmain, the prominent mining firm has been lately pointed out by the developers of the PoWx. The developers have also taken into consideration the influence of Bitmain, the biggest producer of mining chips for Bitcoin [BTC] on the network. However, the concept of transforming the algorithm related to the mining of Bitcoin [BTC] has been prevalent for sometimes in the crypto space. This issue has become more prominent during the times of crisis.
Nevertheless, the founder of PoWx, Michael Dubrovsky perceives this transformation as an inevitable event. “Seldon Crisis” is the phrase used by Dubrovsky for the centralisation of mining Bitcoin [BTC]. Seldon Crisis is a part of the popular scientific fictional series based on socio historical event. It signifies nothing but a no returning point.
Dubrovsky has mentioned to CoinDesk on this context stating, “I think PoW consensus is the most important innovation in bitcoin, and bitcoin is an incredibly important innovation in personal freedom and property rights.” He believes that the technology would assist to, “ensure the mining ecosystem is healthy enough and scalable enough to support crypto’s growth over the next decade.”
Another better prospect
The conspicuous “centralisation” level of Bitcoin [BTC] has been a reason to worry about for the developers. Now, if the issue remains unresolved, the mining centralisation may help Bitcoin [BTC] to undergo a transformation. It may transform into an alternative that resembles the financial system that it was planning to substitute. The PoWx team believes that with the execution of the new algorithm significant improvements may occur to Bitcoin [BTC]. It may help to reduce the expenses of the computing equipment and also the electricity consumption.
Dubrovsky has suggested that the change is mandatory for the community. He told CoinDesk, “I think it will be difficult, but what we are proposing is not just an improvement.” He has further stated, “Something like this is a necessity if cryptocurrency is going to be truly decentralized and used to securely store and move trillions of dollars of value.”
He placed an argument saying, “It is not clear that OPoW could ever lead to the same level of centralization we see today.” He finally concluded stating, “I hope PoWx can participate in solving that next crisis as well, but we will all cross that bridge when the time comes.”
Image via Shutterstock
Join our Telegram group