Each transfer is being advertised to all players, players solve the problem to verify them; They have a certain amount of Bitcoin for the effort they spend. These players are called “miner”. The safety of the whole system is due to the fact that a single common record between the players. Thus, without a central authority, money transfers cannot be denied and cannot be repeated.
The name of this technique is BlockChain. Blockchain technology is interesting. It is now preparing other uses other than money. An unofficent “distributed” (distributed) a common database is formed. The safety and consensus of the database is provided with a type of crypto signature technology. For example, Blockchain is planned to be used for unbalable commercial contracts.
Applications such as “Go”, such as another instance of distributed databases, may help sharing, not competing in the society. Go is a software used for cooperation in software development. As in Blockchain, each player is holding all the database. As the software changes the software, they share all the changes with each other. The consistency of shared data is provided using crypto techniques. With this method, thousands of people can work on the same program in compliance, they can make an effective cooperation. This method starting with Linux Kernel is now used by 40 percent of the software developers in the world.
However, Bitcoin has a matter of trust from the solution to this coordination in the BlockChain. Blockchain-based crypto coins are based on insecurity not to the logic under the coins. In Blockchain, the concept of “Proof of Work” makes it more expensive than the creation of records by doing hard work on computers. Those who want to do fake business will create players enough to be the majority in the market and do all their jobs. It is expensive, not worth because of the lining. The security of the system is provided through this point.
However, this method is not cheap as Satoshi Nakamoto claims the work. Tens of thousands of bitcoin mines, hundreds of thousands of custom construction computers are used. These are consuming an incredible amount of electricity. Currently only the electricity consumption of the Irish Republic of Ireland, which is only used in Bitcoin production. In fact, 159 countries consume less electricity than Bitcoin production. As the price of Bitcoin increases, more powerful mines will be established. As the Bitcoin algorithm increases the power of the computer used for mining, the amount of electricity used to produce (or to perform a transfer) to produce a bitcoin (or to perform a transfer). If these jobs are continued with the same tempo, a few years after a few years, the world’s electricity production will be used in Bitcoin mining. Bitcoin mines are intensified in countries such as Iceland, which is easy to cool in countries such as cheap (and dirty) of electricity or are easy to cool computers.
It depends on the logic of equal players who do not trust the underlying each other under the incredible energy waste bitcoin. It reminds us the last scene of the film “good, bad, ugly”. The players are trying to hit each other but the hands are not pistol but the thermal power plant. Insecurity is essential and the main nature of the developed technology is due to this distrust.
Bitcoin Type Blockchains have a new recommended blockchain type to solve the energy problem. Etherium Blockchain is going to this new system. “Proof of Work” (ie they are using Proof Stake “instead of verifying the transfers by doing hard work.