Nowadays mining is a symbiotic process: you can get coins on an ordinary home PC at the initial stage, and then with increasing the number of miners the available capacities become insufficient. At the same time, the system does a halving operation, that is, halves the reward for the new unit. This caused the creation of pools, huge mining farms. And you will be surprised… but, yes, building conglomerates of industrial scale!
But why we do talk about the alternative? The first and the main reason is the increasing consumption of electricity. Both manufacturers and users, due to the dynamic complexity of extraction e-money, have to increase their technical capacity all the time. What a result? Another unexpected fact: electricity consumption, for example, of the bitcoin system, may equivalent to the needs of countries such as Bulgaria or Denmark. But it seems that people ignore this and go on mining.
However, the parallel reality does exist. And its achievements are as follows.
- Smart contracts
A viable option is extracting e-currency through smart contracts of ERC20 tokens based on the Ethereum. The system is completely tied to the safety of the basic block, which is currently provided by an extensive network of PoS-miners.
The prospect is really very tempting! But you need to remember that the key factor is the integrity of Ethereum-block, which itself works on the above-mentioned algorithm. Nevertheless, this is a sure step forward.
- Delayed Proof of Work
DPoW – a relatively new concept in this business. It makes any cryptocurrency protected as well as BTC, and this does not require an extensive network of miners that would protect it.
This soft relies on an additional network of certifying nodes, which provide an improved mechanism for protection. The nodes check information about previously generated blocks, which is stored on the Bitcoin block. By putting time marks on the hashes of blocks in the BTC blockade, the hashes become unchanged, and any violation will be quickly calculated by the certifying nodes.
They also call it combustion proof, in which the user needs to burn some coins to open a new block, which should mimic spending on some coins or equipment. In other words, coins are sent to an address from which they can not be spent, and the system increases the chances of opening a new block in response to this action. As a result, the user receives more coins than the burned amount.
- PoC or PoSpace
In the professional world, these are read as “Proof of capacity” & “Proof of space” by which is meant the volume for data storage. To obtain cryptocurrency, the user needs to have a place on his PC, usually several terabytes. And the chances of finding a new block directly in proportion to the amount of free space for the system.
You are welcome to study info and make your choice.