As you all know creation of BitCoin is through mining and mining need lot of compute power and electricity. Most of this electricity is wasted for "Proof of Work" or finding the hash. BitCoin is not a sustainable model. Countries will ban BitCoin not because it's being used for illegal activities but it consumes lot of power. Developing nations won't be able to afford this kind of electric consumption. What breaks my heart is that it's wasted. Read my blog -Why Bitcoin is harmful for environment-Link at the bottom of the page.
Now hear my idea-How about a new coin which won't waste this energy? How ? Let Me eXplain. In a mining pool we have lot of compute power available. Just like a distributed computing. So we will use this power for good purposes. Rent this power out for complex scientific calculation. Create an interface where some organization can tap this power by paying some money. So what a miner job will be? First he need to validate the transaction then for the transaction to be accepted he need to solve a real world problem not Hashes. Usually scientific problems will be huge. So what pool(network) does is break this problem to small and distribute to miners. And once solved aggregate all result and send to network.
Let me give an example.Say we want to do the below multiplication.
A x B x C x D x E x F
Split it into AxB, CxD, ExF
AxB is given to 10 miners
CxD is given to 10 miners
ExF is given to 10 miners
So for AxB out of 10 miners if six or more give same result there blocks are accepted and reward is given to them let result be X
Similarly for CxD , let result be Y
And ExF let result be Z.
So among the miners who give correct result share the reward and for next block problem will be X x Y x Z
Once majority give the same result it's accepted and reward is shared. Also there should be a time limit. So the nodes submitting result within time limit will be accepted.
Now the financial backing of coin. Once money is deposited for the service 30% should be allocated for Currency appreciation and 70% will be split among miners and developers.
So the coin will be financially backed and appreciation won't be like that of BitCoin where price rely on people's enthusiasm.
Now let's talk about appreciation. Let's say a currency worth is $100. Now some company buy compute power for $1000.As per above paragraph 30% will be used for appreciation and 70% for reward.So 7 coins will be offered as reward and 300$ will be used for appreciation. Let me show math
1 currency price =$100
New currency added=7
Total money= $100+ $1000= $1100
Each coin worth =1100/8 = 137.5
That is 37.5% rise in value.
It will decrease slowly but the currency will be always appreciating
It can be done with collaboration of banks in different nations so that service get wide acceptance across the geography.
Advantages of this coin will be- energy is not wasted, it's backed by real money, provide a real service, always appreciating.
So Steemians what you think of this new idea. Let me know in comments
Link to why BitCoin is bad for environment
https://steemit.com/bitcoin/@lmx3881/lmx-why-bitcoin-is-bad-for-environment
Link to my previous post
https://steemit.com/car/@lmx3881/lmx-brands-owned-by-automobile-giants
