The Republican-led U.S. House of Representatives has presented a resolution emphasizing the significance of Proof-of-Work (PoW) mining for certain cryptocurrencies, such as Bitcoin, in the country’s ability to achieve its energy objectives and promote its economy.

This move is in stark contrast to the White House’s recent announcement of a 30% increase in tax on PoW mining.

The resolution was submitted by Mr. Sessions on March 21, 2023, and has been referred to the Committees on Energy and Commerce, Foreign Affairs, Financial Services, and Science, Space, and Technology. The committees will consider the provisions that fall under their jurisdiction.

The resolution highlights that PoW mining uses high-powered computing to guess a random encrypted number to win the right to make the next block in a blockchain and earn Bitcoin. This process sets the rules for miners and verifies the legitimacy of every transaction using the blockchain. The resolution argues that PoW mining is an essential process that allows for a blockchain network to remain trusted, open, and decentralized.

Moreover, the resolution notes that PoW mining requires energy consumption for the validation process, but many concerns are unwarranted. PoW mining’s energy usage is transparent and verifiable, using only 0.14% of the global energy supply, which is less than the amount of electricity lost in transmission and distribution each year.

Additionally, PoW mining seeks out low-cost energy and can utilize excess supply during off-peak periods, which improves the overall economic viability of renewable energy projects. PoW mining also contributes to grid stability through demand response, whereby miners can quickly curtail load to maintain equilibrium between supply and demand on the electrical grid.

The resolution also points out that PoW mining economics are notably responsive to electricity prices. Miners can curtail operations when electricity supply is low or prices are high, providing more energy to households and the grid during times of heavy demand. It highlights the example of the summer and winter of 2022, where Bitcoin miners reduced usage by over 1,000 MW and up to 1,475 MW, respectively, in response to a conservation alert from the Electric Reliability Council of Texas (ERCOT).

Finally, the resolution argues that PoW mining can reduce methane emissions by using stranded or wasted methane as a fuel source, thus reducing the amount of methane that enters the atmosphere. Overall, the resolution expresses the House of Representatives’ belief that PoW mining is crucial to the United States’ energy goals and economic growth.

#Bitcoinmining #BTC #Bitcoin #POW #azcoinnews

This article was republished from azcoinnews.com

#POW #POS #benefits

The world of blockchain technology is built on consensus mechanisms that secure the network and ensure that transactions are valid. Two of the most popular consensus mechanisms are proof of work (PoW) and proof of stake (PoS). In this blog, we'll discuss the differences between PoW and PoS and the benefits of each.

Meta keywords: PoW, PoS, blockchain, consensus, benefits.

What is Proof of Work?

Proof of work (PoW) is a consensus mechanism in which nodes, known as miners, compete to solve complex mathematical problems to validate transactions and create new blocks. The first miner to solve the problem and validate the transaction receives a reward in the form of cryptocurrency. PoW is the consensus mechanism in Bitcoin, the first and most well-known cryptocurrency.

What is Proof of Stake?

Proof of stake (PoS) is a consensus mechanism in which validators are selected to validate transactions and create new blocks based on the amount of stake they hold in the network. Validators have a certain amount of cryptocurrency as collateral, locked up during validation. Validators are then rewarded in the form of newly minted cryptocurrency for their contribution to the network.

The Differences Between PoW and PoS

Resource Requirements: PoW requires significant computational power, energy, and hardware resources to solve complex mathematical problems. PoS, on the other hand, requires less computational power and energy, making it a more eco-friendly consensus mechanism.

Security: PoW is known for its high level of protection, as it is challenging to manipulate the network due to the large amount of computational power required. However, PoS is also considered secure, as validators are required to hold a significant amount of cryptocurrency as collateral.

Validation Speed: PoW validation speed is limited by the network's computational power. The number of validators in the network limits PoS validation speed.

Decentralization: PoW is more decentralized, as anyone with the required resources can become a miner. PoS can be more centralized, as validators are selected based on the amount of stake they hold.

The Benefits of PoW and PoS

Security: PoW and PoS are secure and protect against attacks on the network.

Decentralization: PoW and PoS provide a decentralized network, enabling more significant participation from individuals and organizations.

Efficiency: PoS requires less energy and hardware resources, making it a more efficient and eco-friendly consensus mechanism.

In conclusion, PoW and PoS are two of the most popular consensus mechanisms in the blockchain industry, each with its benefits and limitations. Understanding the differences between PoW and PoS can help individuals and organizations determine which consensus mechanism best suits their needs and goals.

Proof of Work (POW) and Proof of Stake (POS) are two different consensus algorithms used in blockchain technology to validate transactions and add new blocks to the chain.

Proof of Work (POW) is the original consensus algorithm used by Bitcoin and other cryptocurrencies. It requires miners to solve complex mathematical problems to validate transactions and add new blocks to the blockchain. The miner who solves the problem first is rewarded with a block reward and transaction fees. This process consumes a significant amount of computational power, and the energy cost associated with it can be high.

Proof of Stake (POS) is a newer consensus algorithm that was designed to address some of the drawbacks of POW. It does not require miners to solve complex mathematical problems. Instead, validators are chosen based on the amount of cryptocurrency they hold, and they are responsible for verifying transactions and adding new blocks to the blockchain. Validators are incentivized to act honestly because they can lose their stake if they are found to be fraudulent. The energy cost associated with POS is significantly lower than POW.

There are advantages and disadvantages to both POW and POS. POW is generally more secure because it requires a significant amount of computational power to launch a 51% attack. However, it is also more energy-intensive and can be susceptible to centralization, as it favors those with more computational power. POS is less energy-intensive and more environmentally friendly, but it can be susceptible to centralization as well, as it favors those with more cryptocurrency holdings.

In summary, POW and POS are two different consensus algorithms used in blockchain technology. While POW is the original consensus algorithm, POS was designed to address some of the drawbacks of POW. Both algorithms have their advantages and disadvantages, and the choice of which algorithm to use ultimately depends on the needs and goals of the blockchain network.

#Binance #POW #POS #BlockChain

Rosen Bridge Expanding DeFi: The Benefits of Integrating Proof-of-Work Collateral into DeFi FrameworksThe ever-evolving world of decentralized finance (DeFi) is continually seeking ways to expand its horizons and enhance its capabilities.One of the latest proposals in this space is the integration of ERG (Ergo's native coin) as collateral within the Liqwid protocol. This proposal not only aims to create a new liquidity market for ERG but also highlights the broader benefits of adding new collateral from proof-of-work (PoW) chains into DeFi frameworks. The ERG Integration ProposalThe proposal outlines the integration of ERG into the Liqwid protocol, allowing users to utilize ERG as collateral for lending and borrowing. Interestingly, ERG will be enabled as an isolated collateral exclusively within the ADA market on Liqwid. Here are the key elements of this proposal:Ergo's Innovation: Ergo, the blockchain behind ERG, has been at the forefront of implementing innovative Extended Unspent Transaction Output (eUTXO) features. These include oracle pools and a stablecoin implementation known as SigmaUSD (later DJED). This proposal underlines the strong relationship between the Cardano and Ergo developer communities, emphasizing their shared focus on pioneering eUTXO protocols.Rosen Bridge for Interoperability: One of the most promising aspects of this proposal is the integration of ERG through the Rosen Bridge. This open-source protocol facilitates cross-chain asset transfers, connecting the Ergo ecosystem with Cardano. This integration is poised to make ERG one of the top assets on Cardano, potentially bringing about significant liquidity and opportunities.Benefits of Integrating Proof-of-Work CollateralThe integration of ERG as collateral into the Liqwid protocol serves as a prime example of how incorporating PoW chains into DeFi can be highly advantageous:Diverse Collateral: By adding ERG, a PoW-based token, as collateral in a primarily Proof-of-Stake (PoS) ecosystem like Cardano, DeFi platforms can diversify their range of acceptable assets. This diversity helps reduce risk by not relying solely on a single blockchain, making the DeFi ecosystem more resilient.Liquidity Expansion: Integrating ERG creates a new liquidity market, allowing users to lend and borrow the token. This not only enhances the utility of ERG but also attracts liquidity providers and borrowers, further deepening the DeFi ecosystem.Yield Generation: Lenders and borrowers can now participate in the ERG market, generating additional yield on their holdings. This financial incentive encourages user participation and engagement with the DeFi platform, contributing to its growth.Interoperability Through Rosen Bridge: The Rosen Bridge represents a significant advancement in cross-chain interoperability. By seamlessly connecting ERG with Cardano, it opens doors for collaboration, asset transfers, and DeFi innovations across different blockchains. This not only benefits ERG but also extends the reach of DeFi into multiple ecosystems.Conclusion The proposal to integrate ERG as collateral in the Liqwid protocol on Cardano demonstrates the progressive mindset of the DeFi space. It not only diversifies collateral options but also leverages the potential of PoW chains within PoS-dominated ecosystems. The forthcoming Rosen Bridge promises to usher in a new era of cross-chain interoperability, enabling DeFi to transcend traditional blockchain boundaries. As ERG becomes a top asset on Cardano, it will bring liquidity, innovation, and growth opportunities not only to the ERG ecosystem but also to DeFi on Cardano and beyond.While the proposal acknowledges economic and technical risks, it stands as a testament to the dynamic nature of DeFi, where forward-thinking initiatives are continually shaping the future of decentralized finance. In the end, embracing PoW chains like ERG as collateral in DeFi frameworks represents a strategic move towards a more inclusive and interconnected DeFi landscape. #cryptogrowers #POW

Proof-of-Work (PoW) is a foundational consensus mechanism in the realm of blockchain technology. It forms the backbone of many prominent cryptocurrencies, providing a secure and decentralised way to validate and add transactions to the blockchain.• Principles of POW:1. Decentralisation: PoW emphasises decentralisation by requiring network participants, known as miners, to compete in solving complex mathematical puzzles to validate transactions.2. Consensus through Competition: Miners engage in a competitive process to be the first to find a solution to the cryptographic puzzle. This competitive aspect ensures that no single entity can control the validation process.• POW mining process:1. Transaction Verification: Transactions waiting to be added to the blockchain are bundled into blocks.2. Cryptographic Puzzles: Miners compete to solve computationally intensive mathematical puzzles associated with the block.3. Block Addition: Once the solution is verified by other nodes, the winning miner adds the block to the blockchain.• Security Features:PoW provides security by making malicious activities, such as double-spending or rewriting transaction history, economically unfeasible. Such an attack would require a large amount of computation power, which is nearly impossible.51% Attack Resistance: The decentralised nature of PoW makes it resistant to 51% attacks, where a malicious entity would need to control more than half of the network's total computational power to manipulate the blockchain.• Prominent PoW Cryptocurrencies:1. Bitcoin2. Ethereum (before transiting to POS)3. Dogecoin4. Litecoin5. Bitcoin cash, etc.Proof-of-work remains a cornerstone in the blockchain landscape, providing a resilient, secure, and transparent means of achieving consensus.What do you hear about POW Consensus? Share your thoughts in the comment section.You can support us with a tip. ❤️#POW