Bitcoin (BTC) remains the largest cryptocurrency by market cap. However, its mining process has faced several criticisms that called for innovation. And a new Bitcoin fork known as Bitcoin Spark promises to usher in a new era of crypto mining.
What is crypto mining?
Crypto mining is the process of creating new digital currencies and verifying transactions in Proof-of-Work (PoW) networks. This involves solving complex mathematical puzzles, and miners dedicate their computational resources to perform these calculations. In return, they are rewarded with newly minted cryptocurrency coins and transaction fees. This process maintains the integrity and security of the underlying blockchain by ensuring consensus.
Is mining Bitcoin profitable?
While Bitcoin (BTC) mining continues to generate rewards, only a few profit. In its early days, individual miners could harness their computational power to earn sizable amounts of BTC. However, as the cryptocurrency gained popularity, the resources required to mine effectively escalated dramatically. Energy costs, specialized hardware, and cooling systems became substantial barriers for most individual miners. Consequently, what was once a profitable endeavour for many has evolved into an arena dominated by industrial-scale mining operations, where economies of scale and access to cutting-edge technologies are essential to maintain profitability.
Crypto mining for all with Bitcoin Spark
Bitcoin Spark introduces several features to improve Satoshi Nakamoto’s vision, but the most striking is its mining concept for all. The Bitcoin Spark network uses a revolutionary consensus mechanism, Proof-of-Process (PoP). This blend of Proof-of-Work (PoW) and Proof-of-Stake (PoS) requires miners to provide a stake in the network in addition to the processing power of their mining devices to be able to validate blocks and earn rewards. The PoP is combined with an algorithm that restricts the linear allocation of rewards based on stake size or raw processing power, establishing a more equitable distribution of rewards among miners. The network will also have a drastically increased number of nodes, reducing the investment made by miners.
The Bitcoin Spark development team will provide user-friendly mining software that can be installed on Android, iOS, Mac Os, Linux, and Windows devices. Users will be able to mine by permitting access to their device’s processing unit. The software will run on a virtual environment isolated from any other part of the device to ensure security. It will also regulate the amount of the device’s processing power used to account for overheating, battery, and simultaneous usage requirements. This ensures the work and power required for mining BTCS is relatively low. Additionally, distributing the blockchain transaction finality across many individual miners reduces the risk of any single miner becoming too powerful, which has happened to Bitcoin, as two miners (Foundry USA and Antpool) combined can control more than half of the hash rate. The Bitcoin Spark network repository will be made available after launch to enable developers to build their mining applications.
The processing power provided by the miners is rented out to Bitcoin Spark’s clients, who use it for high CPU/GPU load tasks. The clients will pay with BTCS, and the revenue will be transferred to the mining pool. Minting rewards are reduced in line with the revenue generated, the price of BTCS, and the number of miners. This means the functionality allowing unlimited devices to provide processing power to the Bitcoin Spark network could infinitely increase the product potential, leading to constant profits for miners while maintaining a limited supply.
Bitcoin Spark’s innovative approach promises to reinvigorate the ethos of decentralization in mining. The project is in Phase 2 of its initial coin offering (ICO), selling BTCS at $1.75 and offering a 15% bonus. Bitcoin Spark has already taken measures to ensure the safety of investor assets, such as conducting Know Your Customer (KYC) audits.
For more information on Bitcoin Spark:
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.