Where does money come from? Dollars are printed by the US Mint. For cryptocurrencies, the answer is more complicated. Until now, both of the most widely used digital tokens, Bitcoin and Ethereum, have only been issued to pay for tasks performed by so-called miners in what are known as proof of work systems. It’s an approach that has drawn increasing criticism for the large amounts of energy consumed and pollution produced. Ethereum is switching to a different system, called proof of stake, in a process known as the Merge. Proponents say the approach can cut Ethereum’s electricity use by 99%.
1. What are the ‘proof of’ systems for?
Cryptocurrencies wouldn’t work without blockchain, a new technology that performs the old-fashioned function of maintaining a ledger of time-ordered transactions. What’s different from pen and paper records is that the ledger is shared on computers all around the world. Blockchain has to take on another task not needed in a world of physical money --...
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INN caught up with cryptocurrency investment expert Dan Hoover to review the current landscape and where the market may be heading. The cryptocurrency investment marketplace has gone through severa...