Ethereum: Why can’t they use super computers to mine all the bitcoins?

Ethereum: Why Can’t Supercomputers Be Used to Mine All Bitcoins?

If you’re new to the world of cryptocurrency, you may have heard of Bitcoin and Ethereum, two of the most popular digital currencies on the market. You’ve also probably stumbled upon the concept of “mining” Bitcoins, where individuals use powerful computers to solve complex mathematical problems in exchange for brand new Bitcoins.

In this article, we’ll explore why it’s not feasible to use supercomputers to mine all Bitcoins and what’s behind this limitation.

The Problem with Mining

Mining Bitcoins requires a significant amount of computing power. The process involves solving complicated mathematical equations known as “hash functions” that are used to validate transactions on the Bitcoin network. To solve these equations, miners use special computers that run complex algorithms. The energy required to perform these calculations is significant.

Currently, the total hash rate (the number of calculations a computer can perform per second) on the Bitcoin network is over 200 exahashes per second (EH/s), an astronomical value that allows new bitcoins to be created through mining.

Why supercomputers are not enough

There are several reasons why supercomputers cannot be used to mine all bitcoins:

• Energy consumption: Even with extremely powerful computers, it is not possible to consume a significant portion of the world’s energy supply.

• Cost: Building and maintaining such massive computer facilities would require huge investments in hardware and electricity.

• Limited scalability: As the Bitcoin network grows, so does the need for mining power. Increasing the hash rate would require more powerful computers, which would result in higher energy consumption and higher costs.

Other Methods of Securing the Network

Although traditional mining is the most widely used method of securing the Bitcoin network, other approaches are also being explored:

• Proof-of-Stake (PoS): This consensus algorithm selects validators based on their “stake” (i.e., the amount of cryptocurrency they own). This approach is less energy intensive and does not require as much computing power.

• Delegated Proof-of-Work (DPoW)

  

  : Similar to PoW, but validators are selected based on their “delegated” status (i.e., the amount of cryptocurrency they own). This method uses less energy than traditional mining.

Conclusion

While it is tempting to imagine a world where supercomputers can mine all of the Bitcoins, this is not possible due to the significant computing power required. The energy consumption and costs associated with powering such massive computing facilities would outweigh any potential benefits of using supercomputers for Bitcoin mining. Instead, alternative consensus algorithms such as PoS and DPoW offer more sustainable and efficient solutions for securing the Bitcoin network.

Sources:

• “Ethereum 2.0: A New Standard for Smart Contracts and Decentralized Applications” by Vitalik Buterin

• “Bitcoin’s Energy Consumption” by CoinDesk