Does Bitcoin mining accomplish anything useful?

Does Bitcoin mining accomplish anything useful?

Most people think that the Bitcoin proof of work is “useless”. Some complain that Bitcoin mining does “nothing useful” like looking for prime numbers. Bitcoin is already doing something useful for society. It is not rational to ask minors to assume an altruistic function without incitement. The idea of ​​”work” as energy began when the French mathematician Gaspard-Gustave de Coriolis introduced the idea that energy was a “work accomplished”. A long time ago, the work done in the economy was entirely human. This job was fueled by food. Over the last hundred years we have built some great machines. These mechanized machines produced work, first from sources such as water and wind, then from cheaper sources such as coal and gas, and now from nuclear sources (fission / fusion). Machines and nature produce work through the use of energy. We have an economy based not on money, but on work and energy. All things in our life are closely related to the price of energy. Purifying the water requires energy. The transportation of products requires energy. Product manufacturing requires energy. Cooking requires energy. Refrigerators and freezers need energy. In a free market, the cost of any good reflects in large part the energy used to produce that good. Because free markets encourage the cheapest goods, the energy used to produce any good is minimized. Money, which represents the work needed to produce goods and services, can also be considered stored energy. In the early 20th century, industry leaders such as Henry Ford and Thomas Edison were interested in replacing gold or the dollar with the “dollar of energy” or “energy units”. The concept was popular because of its strong monetary characteristics, including: a well-defined unit of account, an easy / not easily counterfeited measure, a divisibility in smaller units and a fungibility (that these units would be equivalent to any other unit). However, the energy currency was defective – it could not be transmitted or stored easily. Fast forward to October 31, 2008 – Satoshi publishes the Bitcoin white paper. Under the hood, PoW mining uses dedicated machines (ASIC) to convert electricity into Bitcoins (through a bulk reward). The machine repeatedly performs hash operations (guess / vote) until it resolves a cryptographic puzzle and receives Bitcoins (bulk rewards). The puzzle solution proves that the miner spent energy in the form of ASIC and electricity, evidence that a miner put to work. PoW is a proof of burning, or validation that energy has been burned. Why is it important? It’s the easiest and most accurate way for the physical world to validate something in the digital world. PoW is about physics, not code. Bitcoin is a super product, derived from energy, the fundamental product of the universe. PoW transmits electricity in digital gold. Until very recently, securing something meant building a thick physical wall around what was considered valuable. The new world of cryptocurrency is not very intuitive and strange – there are no physical walls to protect our money, no doors to access our coffers. The public big book of Bitcoin is secured by its collective hashing power: the sum of all the energy expended to build the wall. And thanks to its transparent and expensive design, it would take an equivalent energy to destroy it (unforgivable cost). Does the $ 1.34 billion no-confidence settlement between counterparties each year have the benefit of cheaper energy for all, valued at $ 4.5 billion in current mining costs? I think the answer is a resounding yes.

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