Blockchain : Miners are the new 3rd party, just distributed?
So one of the pro’s of blockchain is removing the reliance on 3rd parties for transactions but is this really true? Aren’t miners the new 3rd party? They compete for validating blocks through proof-of-work, earning ether or bitcoin in the process but using vast amounts of electricity and tying up large hardware resources for processing. The very nature of proof-of-work is restricting scalability. Aren’t we just distributing one of the existing problems?
What is the Blockchain?
A block chain is a transaction database shared by all nodes participating in a system based on the Bitcoin protocol. A full copy of a currency’s block chain contains every transaction ever executed in the currency. With this information, one can find out how much value belonged to each address at any point in history.
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