All blockchain networks have one thing in common: transactions need to be verified. For example, bitcoin adopts Proof of Work (PoW), the so-called mining, which requires a lot of electricity. Proof of Stake(PoS) is another kind of consensus mechanism, which has different evolution and integration forms. We call it staking.
Since its birth in 2009, the price of bitcoin has gone from scratch to a few cents and even as high as US$20,000. The astonishing increase has not only made many early investors earn a lot of money, but also attracted thousands of latecomers to “follow up”.
Under the influence of slogans such as “To Da Moon” and “one coin for one villa”, many “followers” have completely lost their sanity and forgot the advice of “Investment is risky”. Driven by the FOMO (fear of missing out) psychology, they rushed into the cryptocurrency market. Once the bear market came, they were “given a good beating” in the market.
Iran, which has always been critical on cryptocurrencies, has suddenly changed its attitude.
On July 22, the Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) announced that the Iranian Government Economic Committee had approved the establishment of a cryptocurrency mining mechanism. Some people believe that the new policy will make Iran once again become a “mining paradise” after the mine disaster last year.
Although there used to be attraction of electricity price as low as 4 cents, the mining workers migrated to Iran would still face a lot of challenges. Supervision, customs and local bully could make all their efforts worthless overnight.
Now, since the supervision department in Iran has changed the attitude, will the mining workers have smooth migration to Iran?
The NYSE parent company, ICE, originally planned to launch the Bakkt Bitcoin Futures Exchange in December 2018. Due to various reasons, it was delayed until the July 23 when the global user test of bitcoin daily and monthly futures contracts was finally launched. It finally went online on September 23.
The glamor of Bakkt not only comes from its compliance attempts in physical delivery, but also its traditional financial background and strong investment institutions.
The bear market is over and the new rising cycle from bear to bull markets is brewing. Why do we claim the bear market has been over? Because the market first changed the trend of the bear market with continuous increase in volume, which has completely got rid of the declining inertia of bear market. Secondly, under the expectation of bitcoin halving, the users continue to be optimistic with very high mood and full confidence in the future. Thirdly, the network hashrate of bitcoin has broken new record high and re-entered a new rising cycle and the situation of Ethereum has also started to reverse.
Since the bitcoin is getting more and more popular, mining has become the key to the cryptocurrency ecosystem. The mining workers have been driving the transaction and verification for cryptocurrencies. Therefore, the mining industry has always dominated the expanding cryptocurrency world. For many people, the mining has even grown into a thriving business.
As mining costs and competitiveness become increasingly higher, the mining workers are trying to maximize their profits by means of tax deduction.
With the rapid rise of cryptocurrencies and the explosive growth, the political forces in many countries are reaching out to the emerging industry of cryptocurrency.
All the cryptocurrencies in the world are derived from mathematics —- if you can solve complicated mathematical problems faster than anyone else, then you can make profits.
As a result, members of cryptocurrency community found themselves in a symbolic arms race of hash race where they could run the mining equipment with poor performance in early stage. And now, the increasing difficulty means they need more efficient ASIC miners.
On July 24th, Jonas Schnelli, a member of bitcoin core development team, failed in online shopping and he angrily asked BitPay why his order was rejected on Twitter.
There is an “impossible triangle” problem in the blockchain industry, that is, the security, scalability and decentralization. People can only achieve the other two by sacrificing the third one. In order to “solve” this impossible triangle, people have thought out many solutions, including the Layer 2.
Now, let’s make a brief introduction to Layer 2.