Post
Topic
Board Bitcoin Discussion
Re: concern for bitcoin and the environment
by
Stephen Gornick
on 01/05/2011, 06:53:47 UTC
I plan to replace the reply at https://en.bitcoin.it/wiki/Myths#Bitcoin_mining_is_a_waste_of_energy_and_harmful_for_ecology with the above text, or a revision thereof if comments so warrant...

Are you going to be using just the text in green, or all of the text in that reply?

Here's my concern: The concept of a block chain where each block is protected with a hash isn't what gets people hung up.  The head scratcher to many is why it takes thousands of miners to come up with that one hash that is needed for the next block.  The answer to that should be in the response for this waste of energy myth.

Here's my attempt to answer:
To ensure that transaction blocks are produced at specific target rate a technique known as a proof of work system was chosen.  Miners perform work and as more capacity comes online the blocks are produced at a faster rate.  An adjustment is made periodically such that the rate blocks are produce returns to the specified rate.  There simply isn't a better solution that allows a decentralized network to generate blocks at a target rate without  any cheating.