Finance

Should Cryptocurrency Be Minted Instead Of Mined?

Should Cryptocurrency Be Minted Instead Of Mined

“Cryptocurrency mining” hit the 100-interest bar on google trendsback in December 2017. It was the peak time for the term and the term has gotten less and less search hits ever since then. The reason it faded away is because it was sort of like a gold rush, people rushed to it when they heard about but were eventually disappointed by what they found.

Should Cryptocurrency Be Minted Instead Of Mined

It became harder and harder for the newcomers to become rich, when eventually it became impossible. The reason it became harder is because the process of mining cryptocurrencies gets more and more difficult by time. That is the principle property of the mining process.

A good and a more efficient replacement of the crypto mining process is minting the crypto tokens. DasCoin is one of the cryptocurrencies that uses this technique. It is considered eco-friendlier and more effective in distributing the tokens of the network.

Due to the nature of mining, it becomes a competitive process, meaning that those who have the resources are able to mine more than those who cannot afford expensive hardware.Whereas, the minting process used by DasCoin, offers a more balanced approach, where users acquire the tokens by getting into the mining queue, after transferring some value to the network.

Minting is More Eco-Friendly

By reducing the competitive edge and simply creating a First-In-First-Out queue, DasCoin creates a more systematic approach of distributing the coins. This in turn also reduces the eco-impact of the cryptocurrencies. Bitcoin mining requires high-end computations, which are performed by expensive graphic processors. These processors release a large amount of heat and consume considerableelectricity.

Minting, on the other hand, does not require any of the expensive hardware. Das Ecosystem offers an ingenious system, where users can purchase licenses worth anywhere between €100 to €25,000. This would provide them access to the minting queue, where they will receive the tokens, when their turn comes.

This process is far more transparent and secure, as the users are already aware of the number of tokens that they are eligible for, according to their license.

Value Remains Consistent

Unlike mining, where you have to first pay the price of the expensive hardware, minting involves simply purchasing a suitable license from the network. Buying a license give the users a stake in the company, therefore, in its success and rewards the users for brining in more users.

The price of tokens is controlled by the automatic mechanism of the minting queue, which releases a specific number of tokens, at specific intervals of time. This means that the market won’t be flushed with the tokens and the users, investors and all the other stakeholders have a clear understanding of when and how the tokens will be released.

This provides stability and consistency in the eco-system and reduces the risk of expansive corrections. Bitcoin suffered from extreme corrections, due to the very reason of being unpredictable. Therefore, crypto minting process is a safer and more stable approach for distributing crypto tokens than mining.

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John Paul

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