Composed Pattern May be A Good Choice for Chinese Crypto Miners as Policies Tighten
Earlier the Chinese province of Sichuan, the world’s bitcoin mining capital asked local governments to guide bitcoin mining operations to make an orderly exit from the business according to 8btc’s previous report.
The government’s attitude towards mining bitcoin and cryptocurrencies has changed frequently. From the earliest complete prohibition of cryptocurrency-related businesses to the later recognition of bitcoin as virtual property, to the later local governments to guide bitcoin mining operations to make an orderly exit from the business. The country is unlikely to support the development of the cryptocurrency mining industry in the long run.
China has always supported cloud computing and AI, and listed them in the “new infrastructure”, but it does not support crypto mining. If we make some adjustments to the mining algorithm so that the mining process itself is part of AI and cloud computing, can it avoid policy risks?
In fact, many Chinese enterprises conduct crypto mining under the mask of “big data” and “cloud computing”. The reason why it is called “under the mask” is that bitcoin mining uses a general algorithm, the computing power can only be used for mining, not for other social contributions, and is not really “computing”.
But in the future, if mining turns to special algorithms, things will be different. In the future, with a special algorithm, the professional algorithm may be combined with a part of AI, which will become the mode of “computing & mining “. Then the computing process of blockchain is the real “big data” and “cloud computing”, which can not only avoid the government’s supervision but also gain the support of the government.
The consensus mechanism of POW has changed from mining-oriented to computing-oriented as the general algorithm is slowly declining, and the special algorithm is rising. The computing methods that are more closely related to reality, such as edge computing, will gradually become mainstream.
On the one hand, a small number of blockchain projects cannot do without POW mining. On the other hand, the country restricts mining-orient projects, which will limit the number of mining projects. A large number of new projects will choose POS, DPOS, and other consensus mechanisms. Moreover, if a large number of public chain projects adopt POW, it will cause unnecessary waste.
Environment protection is the new focus of the Chinese government’, and in the eyes of the government and some people, bitcoin mining is a seriously polluted and wasteful industry. They think that mining is totally engaged in meaningless work, and they can hardly be persuaded, so the authority’s restrictions on crypto mining will be long-term.