This short post is about energy efficient bitcoin miners seeking renewable energy as an economic solution. Komodo dPoW is explained briefly, which provides blockchain security and an entry into secure & scalable sharding solutions not available to existing blockchain sharding consensus protocols.
Introduction to dPoW & bitcoin energy use
Komodo delayed proof-of-work (dPoW explained in-depth) is a decentralized notarization process – observe data and write it to a blockchain. Bitcoin is the most secure public network ever created and maintained. Energy efficient bitcoin mining usually is the argument made by groups FUD-ing the benefits of a decentralized and secure computing platform – unknowingly. Yes, energy use is high – but compared to gold mining, financial and related services data centres and employee commuting… The first application was money and as time passes and creative uses investigated, the energy efficient bitcoin argument becomes more insignificant as the value of security and use-cases increases.
If you are a firm believer in energy efficient bitcoin mining being a lie and blockchain technology as a scam – then this article is not for you (yet).
Energy efficient bitcoin miners are renewable energy seekers
In this article hinting at bitcoin energy optimization developments from a colleague of the Komodo Pioneers. These are the key points:
- Miners have to put something at stake for their rewards, that stake is energy
- Energy costs money
- Cost savings mechanism becomes an economic solution, not a regulatory solution
So far, we could argue that burning coal costs less. These two articles point to Iceland’s geothermal electricity powering bitcoin mining operations, and China’s Sichuan province hydropower fueling the mining operations in that province. Why? It’s cheaper.
<figcaption class="wp-caption-text">Image by Tim Ertl. (Nikola Bašic Sea Organ. Photovoltaic solar modules providing symbolic communication with nature for the purpose of communicating) Source: https://www.flickr.com/photos/turnmastertim/8119041648/</figcaption></figure>
Komodo dPoW blockchain security adds to bitcoin energy efficiency equation
The primary feature of blockchain technology is security. Komodo writes the fingerprints of a blockchain at a certain time in history into another blockchain. Thus, two blockchains provide secure validation that something has happened. So not only is the bitcoin network and it’s value secured by it’s miners, the Komodo network is secured. If that’s not enough of a further use to bitcoin energy use, then it’s other networks secured by Komodo’s dPoW process that are also added to the energy efficient bitcoin argument.
Enabling project security up to the bitcoin level of network security
Imagine you have a blockchain project and you want to secure it with bitcoin’s network. You can choose to do the fingerprinting yourself (at great cost) or you can do it through the decentralized process of Komodo dPoW. Your blockchain fingerprint can be recorded onto Komodo, and then Komodo’s blockchain fingerprint (which includes your blockchain fingerprint for this segment of time) is recorded onto the bitcoin record of transactions. Security of your blockchain project, Komodo’s blockchain project and bitcoin blockchain security all included in the energy efficiency equation – for the life of your blockchain project.
Further information for starting a blockchain project
Service providers to the Komodo ecosystem facilitate projects onboarding through the blockchain starter kit, but if you want developer resources, read the develop on komodo section of the website.