Whenever it comes to bitcoin mining, people will think that they must use a tool pick to mine, and they will also make themselves dirty. It is normal to have such an idea. These ideas are not far from the practical significance of Bitcoin mining.
Cryptocurrency mining is the process of validating various forms of cryptocurrency transactions and adding them to the blockchain digital ledger. Each set of transactions is processed in one block. Miners protect blocks by creating a hash value associated with transactions in the block. This cryptographic hash is then added to the block. When verifying its legitimacy, the next transaction block will look for the hash value of the previous block.
Most major cryptocurrencies are mined. For example, Bitcoin runs under the concept of a Proof of Work (POW) algorithm, which creates an environment where miners compete with each other to complete transactions on the network and receive rewards. Cointelegraph and various media outlets reported that bitcoin mining is becoming more and more popular, and many players and existing players who have entered the industry seem to be expanding their reach.
Challenges faced by cryptocurrency mining
Despite the exponential growth in adoption and the continuous expansion of the network, some challenges lag behind the proof of work mining concept. The main problems are the lack of influx of projects to provide sustainable mining operations and the excessive use of energy and heat generated during the mining process.
In 2018, a large number of companies have shaped themselves into a revolutionary cryptocurrency mining giant that owns or controls a large mining farm. However, a closer look at their activities reveals that those farms will be overgrown with bushes only if they exist. Usually, such projects are designed with a lot of gimmicks to attract investors to invest in the project and promise a place in mining facilities. Most such projects may lack sufficient business models or capabilities to deliver on their promises.
On a larger scale, the problems of high power consumption and excessive heat dissipation are quickly becoming the main problems in the cryptocurrency field. A recent report estimated that the current electricity consumption of mining operations is equivalent to or exceeds the electricity consumption across Denmark. CBS News reported in a similar survey that bitcoin mining consumes more energy each year than the combined total of 159 countries.
Needless to say, this level of energy consumption has a negative impact on the environment. Similarly, excessive heating reduces mining efficiency. To alleviate these difficulties, many resources are invested in research and development. Blockchain company Burency said: "With the right approach, sustainable environmentally friendly mining activities can be achieved."
How Burency eases these challenges
Burency has positioned itself as a major player in the Middle East blockchain industry. The company is involved in a variety of blockchain and cryptocurrency related business activities, including bitcoin exchanges. With thoroughly tested prototypes and effective working algorithms, Burency Mining is starting as a fully regulated mining entity and will be licensed in Sweden and Georgia.
Burency mining infrastructure is operated by hydropower-as a clean renewable energy source, Burency has a significant advantage in that it can reduce heat and save costs, which is beneficial for companies and investors. Investment You can buy a calculation period or own a mining facility at Burency. The cold climates associated with the selected locations-Sweden and Georgia-will serve as natural heat sinks for the Burency mining facility.
In addition, investors can also choose to invest in Burency Mining Solutions by directly exchanging cryptocurrencies or renting time-sharing calculation periods. In return, the investor will receive some interest, which will be paid directly to the user account. This is a great way to maximize returns and earn some passive income.
The Burency white paper hints that further research and development is in progress, and in light of possible future actions, it will be mined with proof of stake (POS). Although Proof-of-Work and Proof-of-Stake have their own advantages and disadvantages, Proof-of-Stake consumes less energy and costs less.