Should You Consider Consider Burst for Sustainable Mining?
Proof of capacity…
That is the name of the consensus algorithm that powers the Burst blockchain. This is seen as a sustainable alternative to the current Proof-of-Work protocols that power larger blockchains.
There has also been a pretty unique opportunity that has opened itself up recently. For unknown reasons, Burst was delisted from Poloniex.
This drove the price of the coin to some pretty low, and in my opinion, attractive levels.
In this post, I will give you some of the most compelling reasons to include Burst in your portfolio.
It is no secret that the Proof-of-Work consensus algorithm is facing a number of challenges. The algorithm powering the Bitcoin network is seen as massive waste of power and resources.
Already, mining Bitcoin requires industrial level electricity resources. For example, currently it is estimated that Bitcoin power consumption is almost as much as the power consumed in the whole of the Czech Republic.
And the amount of power required will only be increasing…
Given the nature of the Bitcoin protocol, the more coins that are mined, the harder it becomes. As hash rate increases on the network, the difficulty increases and hence the more hash rate is required.
More hash rate, more machines and hence more power.
This would be all well and good if the majority of power came from renewable sources but this is not the case. Most miners are in China where they produce power through coal. This means that Bitcoin mining could be leading to increased carbon emissions.
Of course, the power usage component is only one challenge that PoW algorithms face. We also have to consider other factors such as the cost and speed of the transactions.
So, clearly there is scope for an alternative consensus.
Quite simply, Proof-of-Capacity (PoC) does not require any “work” to be done. In other words, miners do not need to hash complicated algorithms in order to propagate the blocks.
PoC mining is actually done with a computer’s hard-drive instead of through the use of a GPU or ASIC machine. Miners will “plot” their hard drives in order to take part in the transaction.
Exactly how this is done is beyond the scope of these piece but if you are interested you can read more in this comprehensive guide in the Burstcoin docs.
The benefit of this is that there is no need for excessive energy to mine the coins. Hard drives don’t consume much energy at all so this makes it less of a drain on resources.
Moreover, PoC mining is way more decentralized as hard drives are easily available and can be used by anybody. There are no “optimisation” benefits that come with more advanced hardware (as compared to ASIC rigs).
This means that mining with PoC can be done much more efficiently, with lower cost and with faster transactions than on the Bitcoin network.
Burstcoin is well known for been the first cryptocurrency to make use of the PoC consensus algorithm. The coin has been around since 2014 but has only really started moving during the 2017 bull market.
It reached an ATH if $0.10 in January of 2018 but has since fallen victim to the bear market. However, the coin suffered an unfortunate fate 2 weeks ago when Poloniex delisted it.
There was very little warning or rationale given. As a result, the coin fell by over 50% on the other markets such as the Bittrex Exchange. Burst is currently trading at levels not seen since May 2017.
There was nothing that warranted this devaluation. There was no vulnerability in the code or fundamental reason for the coin to be delisted. Volume was reasonable and there was large community interest in the coin.
This could be an attractive opportunity for you to do some bargain hunting on a cryptocurrency that has some pretty strong fundamentals and active development.
Moreover, there are a host of other features that are being worked on that make Burst that much more attractive. For example, they are actually trying to combine blockchain technology with the “Tangle”.
The Tangle is the data structure that is used in networks such as Iota’s. The Burst Dymaxion implements layers of tangle-based lightning networks on top of the Burst blockchain – some truly innovative stuff.
Potential “Burst” in Price?
Markets can be incredibly fickle and highly susceptible to news flow. This is especially the case in the crypto markets where the word “FUD” has been popularized.
And while the term is thrown around quite a bit, FUD does seem to fit the Burst delisting adequately. No fundamental changes in the project, just rumours about the reason for the delisting.
Eventually, those who are able to cut through the FUD can find good bargains.
Indeed it does seem as though the price of BURST has met support with additional buying volume coming in. It has rallied from a low on the 31st of May at $0.0027 to the current price of $0.0036.
Whether we could see a short Burst in the price of BURST is hard to say. The broader market still needs some time to digest and regurgitate the FUD before the price can recover.
One thing is for certain though, Burstcoin is a strong project with committed developers and innovative technology. It has all the right ingredients for a long term “value” play.
Disclaimer: These are my opinions and should not be considered investment advice. I do not hold BURST in any capacity. Do Your Own Research
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