Crypto Mining: A $300,000 Scam Exposed

The White House made waves in the cryptosphere, considering a crackdown against energy-intensive industries. Among these industries, we find that of mining of cryptos. In response, many specialists stepped up and offered various solutions. Charles Hoskinson, the creator of Cardano (ADA) has also formulated one.

A system to reduce the carbon footprint of crypto mining

For the creator of the Cardano blockchain, there are not 34,000 solutions to guarantee the survival of the industry mining. He thinks there’s only one, and that’s protocol Ofelimous which was recently introduced by Cardano. He recalled that this system was launched with the aim of reduce the carbon footprint relating to crypto mining. In this sense, it is different from the usual proof-of-work (PoW).

Ofelimous is a proof-of-useful-work (PoUW) system which, according to Charles Hoskinson, ensures that the computing power of specialists in the mining of cryptos is fully used in order to solve the problems that currently exist. However, its mode of operation has a major drawback: the reduced level of security. A hacker can easily launch a successful attack on this system.

Regarding the issue of security, Cardano (ADA) assures that it is still working actively to resolve it. Until a final solution is found, Mr. Hoskinson advises people who do mining from BTC to switch to this PoUW protocol. He argues that this will help them reduce their carbon footprint.

The White House suggestion

Last March, President Biden ordered a group of lawmakers to look into the issue of energy-using industries. With the order given, the group set about writing a report, and it is because of this report that the White House recommends that high-consumption industries be shut down. For good reason, the report authors demonstrated that if these industries continue to operate, unless they become greener, consequences could be dramatic for the future. They must therefore be simply and purely prohibited.

According to the report (but not only this one), the amount of energy that specialists in the mining of BTC use is equal to that which the small countries consume in the world. In a context where the energy resource prices soar and where the authorities reflect on the future, the question of industries with high consumption such as that of the mining of cryptos resurfaced. In any case, until solutions are found, the report of the group of legislators recommends a switch to PoS system.

Indeed, apart from PoW, another protocol exists: proof of stake (PoS). Switching to this less greedy technology could contribute to a considerable reduction in overall energy consumption. Cardano already works with this mechanism. For its part, Ethereum is about to switch to the PoS system.

While the White House recommends a ban on energy-consuming industries, Charles Hoskinson thinks that a solution for players in these industries could be the switch to the proof-of-useful-work (PoUW) system. According to Cardano, this technology consumes less energy and is beneficial for everyone.

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