Nobody in this community cares about opening a tab on Lightning and needing to continually police it to make sure you don’t lose your coins, but let me explain the Power thing a bit more.
Bitcoin’s block confirmation algorithm is based on SHA-256, which is an algorithm that just uses computing capacity to work. Custom ASIC chips have been developed to solve that problem at a very high rate, and current Bitcoin mining farms just use a bunch of these in parallel to go faster and make more hashes. More chips = more power consumed.
But computing power is not the only resource that you can use for Proof-of-work. Other algorithms are designed to use a large amount of memory also, and memory is harder to scale than computing power. Other algorithms enforce that multiple nodes need to work in concert, and the network delays between them also enforce an additional cost. These make it harder to make things go faster simply by spamming more units. These are just as secure as the SHA256 algorithm that BTC uses. But fewer units = less power.
BTC Maxis think the enormous amount of power consumed on the network is a selling point, when in reality it is the only feasable excuse for governments to ban it. Governments can never ban the protocol itself – it’s just math, after all – but can severely restrict where mining can happen if they think it is burning too much power and endangering other parts of the economy.
This post triggered my /r/Bitcoin PTSD…
Nobody in this community cares about opening a tab on Lightning and needing to continually police it to make sure you don’t lose your coins, but let me explain the Power thing a bit more.
Bitcoin’s block confirmation algorithm is based on SHA-256, which is an algorithm that just uses computing capacity to work. Custom ASIC chips have been developed to solve that problem at a very high rate, and current Bitcoin mining farms just use a bunch of these in parallel to go faster and make more hashes. More chips = more power consumed.
But computing power is not the only resource that you can use for Proof-of-work. Other algorithms are designed to use a large amount of memory also, and memory is harder to scale than computing power. Other algorithms enforce that multiple nodes need to work in concert, and the network delays between them also enforce an additional cost. These make it harder to make things go faster simply by spamming more units. These are just as secure as the SHA256 algorithm that BTC uses. But fewer units = less power.
BTC Maxis think the enormous amount of power consumed on the network is a selling point, when in reality it is the only feasable excuse for governments to ban it. Governments can never ban the protocol itself – it’s just math, after all – but can severely restrict where mining can happen if they think it is burning too much power and endangering other parts of the economy.
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