The Possible Role of Cloud Mining in Improved decentralization

News / 05.04.2020

More people have recognized cryptos like Bitcoin within the previous decade. Even more institutional investors are adopting them. People thought decentralized forms of currency and finance were not realistic before Bitcoin emerged.

However, Bitcoin’s decentralization feature is characterized by scalability issues but a remarkable reinvention of the financial sector has taken place with the efforts of the Bitcoin and the mining community.

Genesis Mining’s CEO spoke regarding the mining community’s role within the Bitcoin domain in the recent episode of the Crypto Conversation podcast. Marco Streng likewise talked about the role of innovations such as cloud-based mining operations in achieving Bitcoin’s decentralization feature.

According to Streng, cloud mining is capable of bringing in more miners and increasing decentralization levels. He noted that it is possible for everyone to mine efficiently instead of purchasing a machine and mine at home. This is quite crucial as the domain is greatly centralized and the big operators keep getting bigger, he said.

Coin Dance’s data shows that the dominance of Bitcoin’s mining domain from a few big mining pools is increasing. Streng noted that in the months ahead, it will be necessary for miners to work on energy efficiency for sustainability. He mentioned the use of renewable energy for efficient mining in the future, thereby contributing a little to global warming and supporting the green energy industry.

Due to various reasons, miner revenue has been declining steadily within the Bitcoin domain; hence, smarter solutions will be required ahead for sustainable operations. Currently, the two main issues facing the mining domain have to do with energy expenditure and hardware investment.

Hence, according to Streng, cloud-based mining activities and the use of renewable energy for mining will be beneficial to the miners as well as the Bitcoin community and it will be characterized by a greater level of ‘trustlessness’ and decentralization.

Source: Cryptopress.

Dacosta Osei-Tutu, a first degree holder in Nursing, who couples his Nursing career with blockchain blogging, has a great passion for the blockchain technology and aims to play a vital role in applying this revolutionary technology to disrupt the healthcare system in Africa.