The Proof-of-Stake (PoS) consensus mechanism has brought significant attention to the Cardano and Solana ecosystems. However, a new project known as Bitcoin Spark offers a crypto-mining ecosystem positioned to rival these blockchain platforms.
What is crypto mining?
Crypto mining is the process of creating new cryptocurrency coins and validating transactions on a blockchain network. In Proof-of-Work (PoW) based systems, miners compete to solve complex mathematical puzzles, and the first to find the correct solution gets to add a new block and earn newly minted coins. However, this process has led to concerns about centralization and environmental degradation due to the significant amount of computational power required. This resulted in the introduction of Proof-of-Stake (PoS), which relies on users who stake a certain amount of cryptocurrency as collateral to validate the blocks. However, while PoS solves the energy issue, the chances of being selected as a validator are based on the stake size, limiting the decentralization aspect.
Is crypto mining profitable?
The profitability of crypto mining depends on several factors, including the cryptocurrency being mined, the cost of electricity, and the overall market conditions. In the early days of Bitcoin (BTC), for example, mining was highly profitable as the difficulty was low, and the value of mined coins was relatively high. However, as the crypto matured and more miners joined the network, the mining difficulty increased, and the individual mining rewards were reduced. Therefore, while traditional PoW crypto mining can still be profitable, it might only be for some. This is where Bitcoin Spark comes in.
Bitcoin Spark: Revolutionizing crypto mining
As a Bitcoin fork, Bitcoin Spark shares some features with Bitcoin, such as mining and a limited supply. However, the network offers innovative features and upgrades that enhance efficiency and accessibility.
The foundation of the Bitcoin Spark network lies in its proprietary blockchain technology, Proof-of-Process (PoP), which combines elements of Proof-of-Work (PoW) and Proof-of-Stake (PoS). This first-to-market consensus mechanism requires miners to stake their assets and contribute the processing power of their devices to the network in order to validate blocks and earn rewards. This promotes network participation and ensures that electricity consumption has a valid purpose since Bitcoin Spark clients rent the devices’ power as remote computing processing for high CPU or GPU load tasks. The mining rewards are calculated as a blend of the miner’s stake and the work performed using their processing power. However, Bitcoin Spark employs an algorithm that ensures rewards per additional power and per larger stake size decrease exponentially, avoiding the concentration of mining rewards in the hands of a few.
The work and power required for block confirmation are also relatively low, as users mine by providing access to their device’s processing unit. The Bitcoin Spark development team will provide an easy-to-use mining program for Windows, Mac OS, Linux, iOS, and Android devices, enabling anyone to participate in network validation. The application will work on a separate virtual environment that doesn’t interact with or affect any other device part to ensure security. It will also be able to regulate how much of the device’s processing power is used to account for overheating, battery, or simultaneous usage requirements, thereby automatically limiting the mining capability. The Bitcoin Spark repository will be made available to the public after launch to enable miners to create their mining applications.
The mining rewards prioritize work over stake size to favour revenue generation. Bitcoin Spark will also offer additional revenue-generating services, such as advertisements on its website and application. If more revenue is obtained, the rewards minting will be reduced, and the minting endpoint will move further away. And this will establish Bitcoin Spark as a self-sustaining revenue network that enables network participants to remain profitable with a limited supply.
Bitcoin Spark has already gained considerable attention in the crypto community, with many analysts likening its Initial coin Offering (ICO) to an opportunity of purchasing Bitcoin at $1. BTCS is currently selling at $1.50 with a 20% bonus in Phase 1 of the ICO.
For more on Bitcoin Spark:
Website: https://bitcoinspark.org/
Buy BTCS: https://network.bitcoinspark.org/register
Disclaimer: This is a sponsored article, and views in it do not represent those of, nor should they be attributed to, ZyCrypto. Readers should conduct independent research before taking any actions related to the company, product, or crypto projects mentioned in this piece; nor can this article be regarded as investment advice.
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