Cryptocurrency mining is a rapidly growing avenue for creating an online income. It involves validating and verifying a transaction before adding it to the blockchain public ledger. Miners receive rewards in terms of coins for their mining effort. The mining process requires high investment in both time and resources.
However, given the improvement in mining mechanisms, many people are finding it more viable and more straightforward. It’s not surprising that cryptocurrencies that allow mining are the most popular. Many platforms are now adding mining functionalities to their system to accommodate the trend. Notable among them is the world’s leading crypto exchange- Bithumb Global.
About Bithumb Global
Bithumb Global has grown exponentially within its first year of operation to hit high trading volumes. The exchange is currently boasting over $64,144,000 in daily Trading Volume.
To further accelerate the exchange’s growth and that of the entire crypto industry, Bithumb global embarks on a crucial mission: Mining Coin Optimization. The plan seeks to minimize current challenges that face Cryptocurrency mining while increasing mining profitability.
Crypto Mining Challenges
Crypto mining has a unique set of challenges that are halting the growth of the industry. Some of these challenges include:
- Centralization – Proof of Work is a mostly used mechanism for crypto mining and involves solving complex mathematical functions. PoW has ignited several debates with Bitcoin enthusiasts claiming that it creates room for centralization. In an open letter to the Bitcoin community, Cobra, a famous bitcoin contributor, suggested changing Bitcoin’s PoW algorithm. According to Cobra, “In a decentralized system, we shouldn’t be put into a position where we rely on a centralized point of failure to behave themselves.”
- Cost – The bitcoin mining process requires enormous electricity power. It’s estimated that Bitcoin uses approximately 61.76 TWh of electricity per year. This is more than many countries and about 0.29% of total global electricity consumption. Mining also requires frequent replacement of expensive computers and installation of a cooling system.
- Security Flaws – There have been concerns about the production and design of ASCI chips used as coin functions. Many questioned the genuineness of ASCI producer Bitmain. An earlier report indicated that “Bitmain’s Mining Pools Controls Nearly 51 Percent of the Bitcoin Hashrate.” This could pose a significant threat to the security of the network.
Solution: Bithumb Global Mining Coin Optimization Plan
Bithumb Global Mining Coin Optimization plan aims to minimize crypto mining challenges while increasing the potential profits. Several measures and requirements have been laid down to see the actualization of the Project.
The following measures will be taken concerning Mining Coin Optimization.
1) Opening a Mining Coin section – Bithumb Global will open a section on the platform that will create a unique function for the Coin Mining project.
2) Opening a Mining Coin Channel – the channel will facilitate crypto miners, BG communities, and developers to submit applications for coins.
3) To foster high-quality mining coins, Bithumb Global will give media and promotion resources.
4) The mining coins community will also benefit from being connected to top mining pool resources.
5) As a global exchange, Bithumb Global holds people of different backgrounds and languages. To cover all users, the platform will provide multi-language community support for high-quality mining coin projects.
As a way to ensure a smooth mining process and keeping in line with the interests of the Bithumb global community, only selected projects will participate in BG’s mining coin optimization plan. The following are requirements to be part of the optimization plan:
1) Project’s audit documents – Ensure your Project has been subjected to a thorough security audit.
2) Approved by a Third Party – Your Project’s code and algorithms must be approved by a known auditing organization, e.g., MIT License.
3) The Project has no pre-excavation. The Project’s code must be open-source. This is to ensure a fair environment for all miners.
4) The Project should include some physical equipment in the mining process. New consensus mechanism supporting Proof-of-Work (PoW), Proof-of-Concept (POC), and others to participate in the mining process.
5) Concerning wallet stability, priority should be given to support new encryption algorithms while encouraging innovative mining coins.
The consensus is one of the significant cryptocurrency pillars technology that provides solid use cases with the potential to transform every sector of life. Cryptomining is part of the consensus and a substantial source of attraction of people to the industry. However, there are several challenges with crypto mining that need to be addressed.
Within several months of existence, Bithumb Global has given solutions to many problems facing the crypto industry. As a leading international crypto exchange, Bithumb Global is overseeing multiple projects to improve digital assets and traders’ experience. Now, the much-anticipated solution to crypto mining woes is finally at hand thanks to BG’s “Mining Coin Optimization plan.”