@Kak
"Why do we need a decentralized mining operation? I know people use decentralization to prevent attacks from hackers and governments that are trying to take it down. Is this one of the motivations behind a decentralized mining operation or is this more about decentralized decision making powers?
It could also mean that decentralized mining operations might prevent a 51% attack, if the mining pools are more decentralized. Right?
Please expand a bit more on the concept and what the motivation for this was?"
Adam4Eve Response / Motivation:
1.) Utilize the high energy demand of "proof-of-work" to stimulate the development of renewable infrastructure.
2.) Allow common people access to cheap electricity to help prevent "51%" hacks in the future and move away from large institutional control of hashpower.
I will try to be as brief as possible, but please feel free to continue asking questions that are not clear. It as also great for me to hear feedback.
The last Bitcoin block is not estimated to be mined until 2140. That gives us another 120 years of continued Bitcoin mining energy demands. Cheap electricity is going to be harder to come by as time goes on. There has to be renewable energy infrastructure, and lots of it, to verify transactions for large scale crypto adoption.
We can build this infrastructure now. Geothermal works well because the energy is 24/7. Wind and Solar (if you are not grid connected) require storage units (large-scale batteries) to provide the 24/7 energy needed to maximize returns. These units very expensive, much more than geothermal. If you are grid connected, then the energy you get is almost certainly going to be from fossil fuel sources. My climate scientist friends could jump in from here....
Bitcoin mining is going to continue to be harder. Few people have access to power resources requires, leading to large centralized control of mining power. There is also cloud mining, but here you are paying for the power per kW, which performs poorly when Bitcoin is low, and those cloud mining companies fail.
What I am proposing is the pulling together of resources from the crypto community, to stimulate renewable energy adoption and helping to decentralize mining operations. Everyone gets a piece of the pie, not by cloud mining (selling the power) but by ownership. Giving the community both ownership of the resources, and distribution of Bitcoin mined, allows for these power plants (I call them special purpose vehicles) to be more resilient to Bitcoin price fluctuations. The vehicle will maximize revenue generation, and can be traded at any time by the different power plant owners thanks to new security token trading platforms that just came out in 2019. We move away from Utility tokens, and use Asset based Security tokens to give people ownership.
Example of security token platform:
https://www.tzero.com/Example of the "Decentralized Power Plant Model" and the benefits of tokenization:
https://www.linkedin.com/pulse/proposal-promote-democratization-sustainable-using-jay-fortin/Original Article:
https://www.iisd.org/library/tokenization-infrastructure-blockchain-based-solution-financing-sustainable-infrastructureAll of this stuff is pretty new, but I think it should work.