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5. Mining

WHAT IS MINING?

The idea of crypto-related “proof of work” data-mining was put in play with the creation of Bitcoin. At the time it was a principle that pushed aside issues of transactional trust because it was developed to be 100% autonomous and largely anonymous: One person meeting another at a specific time and location and saying I agree with what he said.” This idea is a chain of agreement relying on the previous transactions. But, the idea has serious flaws: it serves a system of data-miners eager to confirm transactions through ”proof of work” systems at phenomenal costs of infrastructure and resource costs. And, these independent data-miners drive the transactional fees high due to the necessary recovery costs and expenses related to their business investments in “mining equipment”. A point in fact, Bitcoin was developed as a social tool to expand payment solutions for the common good. But, transactional costs have reached over $30.00 USD per use thus making the purchase of simple daily items absolutely impossible (3.50 Qt Milk + Bitcoin transaction $30 = $33.50 for Milk).

Outside of the obvious extreme waste of power to drive these singular systems, Bitcoin mining has one function, to confirm transactions. And, as such, the process is entirely unsustainable and a sheer waste of natural resources. Fortunately, this type of process is not the only way to achieve the same function: Welcome inexpensive cloud. Cloud computing distributed in strategic locations using high-end performing enterprise computers backed with hyper-security, and non-penetrating hacking software lowers transactional costs and produces low and stable transactional capability.

No volatile transactional markets

No wasted natural resources

Lower transactional fees

Ability to use crypto-currency for basics

Same secure functionality

Let’s be clear, “proof of work” is out-dated technology. Even Ethereum have been trying to move away from it for ever. The xChange Blockchain uses RAFT consensus algorithms that keeps data safe without the function of specific “block” mining. This is due to the use of a powerful static code analyzer and type system inspired by functional programming languages to assure execution safety, and makes it impossible for any “block” interference. Immutable transparency, with 8,000 transactions per second with clearance latency of 2.5 seconds, xChain blockchain has moved far away from the out-dated technology of Bitcoin. RAFT consensus is built using Rust language, and is without doubt the most secure programming language to date and is why we have eliminated paid-mining.
Last Updated On March 16, 2018
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