The non-profit organization PoWx was launched last week with the aim of boosting the idea behind the Work Test (PoW) through more innovative algorithms.
The company seeks to decentralize Bitcoin mining and make it more accessible to consumers through a new technology that executives called "Optical PoW": a new type of hardware that uses a more advanced and efficient laser technology as the cornerstone of mining.
The extraction of bitcoins and cryptocurrencies is generally not allowed for those who can not afford expensive computers and specialized equipment. In addition, miners are generally caught dealing with excessive consumption of electricity, which generates high bills. It is estimated that approximately 0.15 percent of the world's energy is used to extract cryptocurrencies.
This is where the Optical PoW comes into play. PoWx founder Michael Dubrovsky says that technology can alter Bitcoin's current algorithm to make mining more decentralized and that software advances could make the sector healthy and scalable enough.
The idea of optical PoW emerged last year. Dubrovsky says there was growing concern that the mining space would eventually be centralized. Dubrovsky and the PoWx team specifically target Bitmain, the Chinese mining giant responsible largely for building and supplying most of the equipment needed to boost Bitcoin mining.
In an interview with Bitcoin Magazine, Bitcoin Core and Bitcoin Knots developer Luke Dashjr said he is in favor of Optical PoW and believes mining activity, as executed now, could damage the future of cryptocurrencies.
"Bitmain has compromised the security of Bitcoin, so it is necessary to change to a new Work Test algorithm to secure the network again," he said.
"One problem that allows mining centralization is that electricity costs are lower for large corporations than for normal users. The Optical PoW claims that it can eliminate this problem, and, since it is a completely new type of technology, it also eliminates almost all the advantages of Bitmain in trying to monopolize a new algorithm. "
If this innovative Work Test is implemented, mining chips could be less expensive, which could increase the level of decentralization. In addition, optical PoW would make mining more efficient, which would allow miners to extract more coins in less time, which gives them the opportunity to compensate for the respective energy consumption.
Unfortunately, PoWx still has several obstacles to overcome, the biggest is the lack of funds. Currently, the company seeks financing to continue with the development.
In addition, changing the current Bitcoin work test algorithm will not be easy. Each user will be asked to update their own software, and in the end, it will be up to the public to accept or reject the idea. If many users discard it or decide it is not the best for them, Bitcoin can "divide" again as it did several times before, which has resulted in the creation of Bitcoin Cash, Bitcoin Gold and other so-called "forkcoins".
Dashjr believes that this could cause several obstacles. "Any change in PoW requires the consensus of the entire community, and so far, it seems unlikely that we will achieve that, in large part due to the FUD (Fear, Uncertainty and Doubt) propagated by the miners that make it sound more dramatic than the change. simple that it really is, "he says.
"The community will have to overcome these unjustified fears before Bitcoin can successfully migrate to a new algorithm."
However, the long-term objectives of the company remain ambitious. Dubrovsky estimates that the launch date of the Optical PoW will be in early 2019. PoWx is also looking to build a second company, Arrakis Photonics, which will put the hardware into practice.