Connect with us

#Bitcoin

Bitcoin PoW is Fowl says crypto techie: PoA is how it should work

Published

on

Gerald Fenech claimed in his Forbes article that the Principle deployed in bitcoin PoW did not hold out technically and was in its real sense a ‘flaw.’

Throwing up the challenge and facing up to the large bitcoin community was Gerald Fenech when he claimed in his Forbes article that the Principle deployed in bitcoin PoW did not hold out technically and was in its real sense a ‘flaw.’

The world of cryptocurrency is actually a complex network of technical processes which evolve to deliver solutions which are steeped in concepts such as immutability, transparency and decentralized distribution of ledgers. Hence, time and again there are deeply technical aspects which are debated amongst the community members to offer alternative solutions which could be technical better feasible or take the platform forward to a different level.

One such technical debate is PoW (Proof of Work) vs. PoA (Proof of Authority).

 

Historical Background to bitcoin

It is time for investors and the bitcoin community to identify that at the time of the launch of this super-power crypto coin in 2009 by Satoshi Nakamoto the intent was to offer as a reward the first ‘transaction’ evaluator on the block. Thus the concept followed was Proof of Work. There is a school of thought among bitcoin purists that this was a concept which was originally developed back in 1977 by Adam Back’s and simply known as Hashcash.

The current argument is that the use of PoW is only  a documentation of ‘challenges’ which eventually will be fatal. The particular perception of fatal in this case is that the process of validating blocks on the principle of PoW consumes high quantities of computing power, energy and is also environmentally harmful, due to the mining process. It is very similar to the carbon footprints created by the data storage industry where servers guzzling massive power are cooled down using water and other alternatives.

Hence, Fenech argues that the issue before PoW currency mining is that there are high investments required in terms of the hardware as well as the operating processes requiring large areas or real estate apart from the infrastructure itself being proofed for disaster and risk management in bigger mining centers. The formation of these pooled resources at the mining farms reveals that there is centralization of resources.

 

PoA is the alternative

Fenech argues, in this poorly reasoned presentation that PoA is a better solution in such centralized mining and coin production centers. He suggests that PoA becomes the protocol which will ensure that “A validator has to be personally identified and verified on the platform, making them a trusted node. Users who confirm their identity earn the right to validate blocks on the chain. The crypto rewards they receive are public, as are malicious actions undertaken; this means that individuals have their personal reputation at stake when acting to secure the network.”

However, critics are quick to point out that PoA is limited in its approach as it does not focus on computational power, during the process of mining for the cryptocurrency.

#Bitcoin

Cryptocurrency Price Analysis: Great Week for the top 10

Published

on

The current week has proved to be quite amazing for the cryptocurrency market as all major coins are holding green. The total cryptocurrency market rose by around $1.5 billion yesterday night with the price of bitcoin reaching $4100.

 

Bitcoin:

BTCUSD Price Chart

BTC/USD Weekly Price Chart

Bitcoin broke the $4000 resistance level on 17th March and has been over this range since then. Bitcoin has turned the previous resistance into strong support now and has moved upwards slowly currently trading around $4120 (according to Bitfinex chart) with around 1% increase in the last 24 hours. If bitcoin is able to maintain its position above $4100 range for long, it might soon move ahead towards the major long term resistances such as $4500 and $4600.

 

Altcoins:

ETHUSD Weekly Chart

ETH/USD Weekly Chart

Ethereum also saw a nice bullish momentum this week after reaching the highest point of $143. Currently, Ethereum is trading nicely around $140 and is experiencing a few dips while trying to move upwards.

Unlike other top 10 coins, Ripple market is experiencing volatility from the last week but the momentum is still quite bullish.

LTCUSD Weekly Chart

LTCUSD Weekly Chart

Litecoin has been following trends and is steadily trading around $60 from the start of the week. Litecoin has increased more than 1.67% in the last 24 hours which makes it the best performing crypto of the day (in comparison with the top 10 cryptos according to market capitalization). LTC is currently trading around $61 (according to Bitfinex chart).

 

The overall cryptocurrency market is in a bullish momentum with sings of further gains. After a long bearish trend, cryptocurrency analysts are now believing that the bull market might be coming soon.

Continue Reading

#Bitcoin

Tom Lee: Bitcoin Bull Market Coming Soon

Published

on

Tom Lee, the co-founder of Fundstrat Global has predicted that the price of bitcoin will likely experience a bullish run in the next 5 to 6 months.

Tom Lee, the co-founder of Fundstrat Global also known as the bitcoin bull has predicted that the price of bitcoin will likely experience a bullish run in the next 5 to 6 months. Lee predicted this during an interview with the CNBC. According to Lee, the 200 daily moving average is the number to keep in mind. If bitcoin is able to stay above $4000 till August this year, it will cross the 200 daily moving average and thus technically the overall chart would start to look bullish.

During the interview, he also mentioned that the future of bitcoin and other cryptocurrencies lies on the fact of whether it becomes an asset class and bitcoin is still in the early days of becoming one. Although Tom Lee has been quite bullish about the price of bitcoin, Fundstrat had recently posted a warning that the cryptocurrency market might crash to a new bottom before actually starting a bull run.

 

Tom Lee on JP Morgan Coin:

In the interview, Lee also expressed his concerns regarding the recently launched JP Morgan Coin which is a stablecoin launched by the banking giant JP Morgan Chase. He said that things such as the JP Morgan Coin and Facebook Coin create use cases for cryptocurrencies and according to him, the JPM Coin is surely not a competitor to bitcoin as it is a stablecoin in nature.

Continue Reading

#Bitcoin

Alert: Bitcoin Breaks Record, Highest Hash Rate Since November 2018.

Published

on

The hash rate of bitcoin which is the power that secures the bitcoin network has recorded the highest level yesterday (19th March) since last year November.  The Bitcoin hash rate passed over fifty-two quintillion hash per second in accordance with the data feed on Blockchain.com.

 

Bitcoin Hash Rate:

Bitcoin hash rate is the computation of the performance of bitcoin miners. In simpler terms, as the hash rate goes higher, the bitcoin network becomes more secure. It becomes more difficult to attack the bitcoin network as an attacker would need increased resources in order to attack the network. The increasing hash rate also depicts the increase in the number of bitcoin miners. As the BTC mining difficulty level is quite stable now, more and more miners are joining the bitcoin network. Although, the increasing hash rate would eventually result in an increase in the overall difficulty level.

bitcoin hash rate 19th march

Bitcoin hash rate 19th March 2019

 

The bitcoin network security is at its peak since November last year. The highest hash rate ever recorded has been around 62 quintillion hash per second in August last year. Looking at the current chart, it depicts that the hash rate might even cross this level in the coming time.

 

The increased hash rate also builds up confidence in the minds of the miners as it shows the overall security of the bitcoin network and thus predicting a secure future of the investment of the miners. Thus, overall, more and more miners are now joining the bitcoin mining network after a subsequent decrease last year which led to a lot of miners moving out of the mining business. Bitcoin price analysts believe that the hash rate of the network follows the price of bitcoin as it helps them in speculating the future price of BTC.

 

During last year’s bear market, the hash rate also fell drastically which led to a lot of miners shutting down and the mining equipment were being sold at waste prices. Now as the hash rate is rising, miners are again turning on their mining rigs and moving back to business. It is also worth examining that the current hash rate of the network is even more than the recorded hash rate in December 2017 when the price of BTC went up to $20,000.

Continue Reading

Keep up with Bitcoin & Blockchain Technology Trends

Simply enter your email address in the box below and sign up for emails from Coinnounce regarding trending cryptocurrency, bitcoin & blockchain topics and offers.

This information will never be shared with third parties.