Yes, te fact most non-crypto currrency blockchains actually don’t permit “mining”.
Mining is actually an economic concept used to help people better understand the Bitcoin blockchain’s distributed overeenstemming mechanism.
The concept of mining Bitcoins is actually a combination of a duo of different technical and economic principles.
Very first, it references the finite quantity of 21 million bitcoins encoded ter the system, which is distributed little by little through prize “halving” process every Four years, until no fresh but coins will be “mined”.
This mechanism is purely an economic mechanism that imitates the intrinsic property of scarcity, like when mining gold or other precious metals.
Blockchain systems, especially private blockchains don’t necessarily have this requirement, instead operating like cloud network computers, where the distributed computing knots are trusted and managed. End users simply utilise the blockchain by building on top of this distributed overeenstemming network.
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Presently, many people perceive the concepts of the blockchain and mining spil something indivisible and accompanying each other. Te fact, the technology of blockchains can exist without mining a crypto-currency. How is this implemented? Why do you need mining and how does it work? Te this article wij will talk about thesis questions., and we’ll find out how the blockchain system is organized without mining by the example of the fresh CREDITS blockchain toneelpodium.
Why you need mining and how it works
So, te order to make the explanation process lighter, wij assume that there is a group of developers who determined to launch their own crypto-currency te a classic blockchain with mining.
Since the digital coin itself does not have centralized storage and an punt knot, and all users have equal rights ter the network, it becomes necessary to introduce a mechanism that would ensure the irreversibility of transactions, spil well spil the possibility of verifying their validity by each member of the network.
Such a mechanism is the process of mining. It permits all of the users of a distributed network of crypto-currencies to check transactions and add them to the blocks.
Ter addition, te the algorithm of the coin itself certain conditions are also laid down, for example:
· Timing for creating fresh transaction blocks spil well spil enlargening the complexity of production spil the number of blocks increases.
· A network user, who very first creates a valid transaction block that conforms to all of the rules and successfully passes the test, receives a certain prize.
· The block that has the most valid transactions is added to the chain.
The creation of fresh units and the verification of transactions are stimulated by the network itself through the accrual of awards. But how can wij limit the speed of creating thesis blocks? After all, without thesis “limits” wij would have got millions of empty blocks out of nothing. Here, the calculation of a hash having a value below the specified one comes into play, which is essentially the main task of mining performed by the computing power.
How to calculate this hash? All blocks consist of several fields, which, when concatenated, are converted to a large accumulation of bytes. This array voorwaarde be “skipped” through the hash function, having a definite hash value. Now, the system determines whether the value of the one ,that is needed to add a transaction, is less or not. If the conditions are not met, then it is necessary to proceed the search further. How it this done?
Each block has its own meaning “nonce”. This number is several bytes te size, and voorwaarde be incremented by one, then added to the block and the hash calculated again. This proces proceeds until wij get the required value. A prize is given to those who very first achieve this result.
Thus, the use of cryptography, namely hash functions, ter mining, permits us to limit the “growth” of the blockchain by introducing elaborate mathematical calculations. Ter addition, the mining process is kleintje of a crypto-currency kwestie. Thanks to those engaged ter mining, the number of coins ter circulation is growing.
Why is a blockchain with mining not ideal?
It would seem that everything te this system is flawless — dual spending is excluded, all transactions are cautiously checked, emissions are evenly distributed, etc. But, nevertheless, why does a blockchain with mining cause some doubts ter its effectiveness? There are several reasons for this:
· Long-long-long. It takes a loterijlot of time to test a transaction and add it to the chain. So to speak, for example, about the Bitcoin network, then for one translation it takes from 1–30 minutes and this is provided that the user establishes a normal commission. Speaking about the speed of OLTP-transactions used ter classical banking systems is not needed.
· Expensive. Mining with the passage of time and the growth of a network requires more and more computing power, which leads to an increase te the cost of the entire process on a world scale.
· Poor scalability. A blockchain with mining is not suitable for creating a system that could record billions of transactions a day. Te addition, with a decrease te coverage,
Is it possible to get rid of thesis shortcomings, but at the same time preserve those qualities of the blockchain, that are appreciated by many users? Certainly! Already today, there are projects that suggest radically fresh approaches to a blockchain technology without mining. One of those is Credits. Let’s consider its features ter more detail.
Credits: blocking without mining te practice
Credits is an open blockchain verhoging that, unlike the popular Bitcoin and Ethereum, functions without mining, which gives it a lotsbestemming of advantages. Very first, let’s look at them shortly:
- Availability. Commissions within the system are up to 0.001 US dollars.
- Speed. The technical features of the blockchain permit you to bring the speed of operations to a fresh level: approximately from 0.01 to 1 seconds vanaf operation.
- The volume of transactions. The internal architecture of the toneelpodium permits for more than 1 million transactions vanaf 2nd.
- Lack of mining. Users will no longer have to spend meaty sums to permanently upgrade their production equipment.
Thesis are just some of the advantages of the CREDITS podium, given te a schrijven overview. The main feature of this project lies te its technical implementation. Lets consider the “insides” of CREDITS closer.
So, ter the system there are Three types of knots that take part te voting for the knots of the trusted and basic type, forming the “white list” of transactions, rejecting / confirming them, and also saving them ter the registry. Thesis include:
· The main knot. This knot takes on the task of analyzing and confirming transactions from the whitelist, spil well spil adding them to the registry.
· Trusted webpagina. The knot involved te the analysis of transactions, spil well spil the compilation of the primary “white list”.
· A normal knot. Participates ter the choice of trusted and major knots.
Thus, te the process of confirming / rejecting transactions, all the knots included te the network participate to some extent. Someone casts their vote for a trusted or principal knot, someone makes up a white list of transactions, and someone confirms the transactions by adding them to the registry.
To achieve maximum network spectacle, the CREDITS project uses its own unique overeenstemming protocol based on DPoS + BFT. The right to get the status of the main knot of the network is obtained by someone who has a more powerful server or better network quality.
The overeenstemming protocol itself is implemented according to the following scheme:
1. The creation of a list of trusted sites.
Two. Getting a finish list of transactions.
Three. Analysis and processing of candidate lists, voting of all knots.
Four. The creation a list of all confirmed transactions and add them to the register with the time stamp and hash code of the block that contains the transaction.
Five. Send a fresh transaction block to all knots.
Thus, due to the fact that transactions are transferred to the main knot, where they are processed and added to the registry, there is no need for a mining process. Accordingly, the speed of transactions is significantly enhanced.
The CREDITS verhoging is a good example of how a blockchain system can exist without mining. The unique technology involved te this project has very fine prospects and, perhaps, te the near future will be able to wiggle the classical crypto exchange industry. More detailed information about the technical specification of the project and its development can be found on the official webstek of the developers.