- Ethereum Price Technical Analysis (Oct. 17): Still in the Panic Phase
- Tokens Pegged to Nike's Sneakers Fall Sharply after Daryl Morey’s Hong Kong Tweet
- Ford Explores New Blockchain and Geofencing Tech to Lower Emissions
- Taking Cover from Brexit? Wales Set to Launch a Native Virtual Currency
- Bitcoin Price Technical Analysis (Oct. 16): Trending Sideways with Negative Sentiment
The questions regarding the daily usage of cryptocurrencies came into light due to the inefficient transaction validation techniques that were being used. This is when the developers get back to the drawing boards to come up with a more efficient method to verify cryptocurrency transactions. While the proof of stake did solve this issue (at least to a degree), it came at the cost of partial centralization as well as decreased security.
Several other techniques were also implemented in order to improve transaction efficiency such as SegWit, etc. However, these methods cannot handle the transaction volume once cryptocurrency achieves mass adoption. In order to find a permanent solution to the transaction efficiency problem, we need to look at the source of this issue.
New digital coins are being created in a process called mining by using mining chips which have been devised to mine cryptocurrency. However, these chips are very inefficient and consume a lot of electricity and also waste a lot of this energy in the form of heat and sound. The only way for us to increase the efficiency of transactions is to decrease electricity consumption by reducing or nullifying the energy that is being wasted by these chips.
The SBI group has finally decided to end this inefficiency and has thus established a separate branch that would research the various methods to decrease the energy wastage by the mining chips and improve efficiency.
What role will SBI Mining Chip Co. play in the crypto world?
The SBI Mining Chip Co. has one of the most important roles in the crypto industry. Most of cryptocurrencies are being secured by the process of mining. However, due to the inefficiency of the existing mining cards, several cryptocurrency miners are actually shutting down their rigs in order to avoid losing their own money.
This was not a localized problem and many miners around the world stopped mining. This reduced the overall mining power that helps to secure the cryptocurrency networks. The mining power was so low that the Ethereum Classic network experienced a 51% attack recently and the root cause for this was the extremely low hash power on this network.
As this trend continues, popular crypto networks such as Bitcoin and Ethereum are also under the threat of experiencing a 51% attack. This would eventually might result in the entire crypto market to come crashing down which would not be a piece of very pleasing news for investors.
Thus, these are vital times that the efficiency of the mining chips needs to be improved in order to encourage more miners to come and power up the network once again. The SBI Mining Chip Co. aims at achieving exactly that. Having a dedicated branch just for researching efficient mining chip solutions, Tokyo’s SBI group has made a great move for the entire crypto community.
Once they come up with the solution, it won’t be long before the hash power of the crypto world goes back up. Thus, helping to build more secure cryptocurrency networks.
The SBI group is widely renowned due to their involvement in blockchain business overseas. With prior experience in this field, the establishment of the new branch solely dedicated to making mining chips gives more confidence to both developers as well as users of cryptocurrency. With the knowledge that they possess, it won’t be long before we get to see a new wave of efficient mining chips flood the market.
Mining is an integral part of most of the crypto networks. The only issue comes in the form of its inefficiency. With the establishment of the SBIMC and other developments of other crypto mining firms, we can expect this problem to go away in the near future. As they are dedicated to creating efficient crypto mining chips, we will be able to see a new brand of mining chips that will take over the crypto market due to its efficiency and performance in the real world.