Blockchain is one of the most significant inventions of the century. However, there are still many challenges that need to be addressed in order to make it more scalable and secure.
One most recent challenge was the shift from a Proof-of-Work (PoW) consensus to a Proof of Stake (PoS) consensus on the Ethereum blockchain, which has dramatically impacted the way the network operates – but the important work done by blockchain miners.
When Ethereum switched from PoW to PoS, the community was initially shocked. Some miners were worried that they would no longer be able to earn rewards for securing the network and that their role would become obsolete. This has a number of financial and environmental implications:
● First, mining equipment and hardware is expensive, and blockchain miners have invested a lot of money into acquiring equipment. The mining industry is worth an estimated $19 billion;
● Second, miners would become obsolete and lose their source of income;
● Lastly, disposing of mining equipment would create an enormous amount of E-waste.
As a fork of the Ethereum network, Pulsar Chain seeks to create a sustainable PoW network, with miners at the heart of securing the blockchain.
Blockchain miners play an essential role in securing a blockchain network. By validating transactions and blocks, they ensure that the network remains tamper-proof. In return for their efforts, miners are rewarded with newly minted coins or transaction fees, among other rewards.
Pulsar remains committed to creating a blockchain network that will use the PoW mechanism forever, therefore keeping the network as decentralized as possible. PoS compromises decentralization by potentially giving control to those with the highest crypto stakes, making the network more vulnerable to security attacks, scams and centralized control.
PoS doesn’t require much time and effort, simply the more crypto you stake, the more control you have. PoW requires a lot of time, dedication, and patience from blockchain miners and investment in blockchain mining infrastructure. The economic incentive to remain honest makes PoW a superior consensus to PoS in terms of security.
The major downside of PoW is that it draws up to 99% more energy than PoS. Making PoW sustainable and green is at the core of what Pulsar Chainaims to achieve. We plan to incentivize miners with double block rewards and carbon credits for reducing their carbon footprint by powering their mining infrastructure with renewable energy sources.
Mining rigs and associated equipment need to be disposed of correctly when they are obsolete or need to be upgraded. Pulsar will ensure miners safely dispose of equipment by partnering with recycling specialists. This ensures mining remains green and sustainable while safeguarding the position of miners.
Blockchain miners are integral to the security of a blockchain network by keeping it as decentralized as possible and making it tamper-proof. Pulsar Chain will continue to allow experienced ETH miners to do their important work by building a blockchain that respects and incentivizes miners, safeguarding not only the blockchain but their futures too.
Disclaimer: Readers should keep in mind that the information contained in this article does not constitute investment advice. The ideas and strategies presented should not be used to make any investment before assessing your financial situation and consulting a financial professional.