Nyukia.com

Ethereum’s transition from a Proof of Work (POW) to a Proof of Stake (POS) consensus blockchain is almost here, presenting immense opportunities for POW altcoins, particularly the ones that are CPU-mined.

Following a series of testnets for the past two years, the “Merge”, which is the last iteration in transitioning Ethereum into a PoS network is expected to take place in just a few months ( Ethereum co-founder Vitalik Buterin has predicted August if all goes well).

The Exodus of Ethereum  Miners

Just like the mass exodus by China-based miners in 2020 following China’s crackdown on PoW mining, the Merge will inevitably see the $19B Ethereum mining industry disappear, forcing miners to repurpose their GPUs to mine other PoW altcoins. As of writing, GPU prices have slumped by over 50% and have been flooding the market as fears of being left holding onto useless rigs after the Merge mount.

Moreover, ETH miners have been shutting down their equipment following a plunge in mining profitability. This has been brought about by the drop in ETH price while the hash rate kept soaring. In fact, it is now cheaper to purchase ETH at spot using the money that could have been used to offset electricity bills.

That said, whereas GPUs will find a home mining other PoW altcoins, mining them may be economically unsustainable for most existing Ethereum miners, rendering some miners out of business. Furthermore, with mounting environmental and regulatory concerns, miners may need to pivot towards coins that utilize the cheapest energy sources to remain profitable. 

So, with all these forthcoming inevitabilities, where do all these miners go?

The Whive Protocol ($WHIVE)

The $WHIVE protocol presents a once-in-a-lifetime opportunity to stranded ETH miners as well as people mining other coins but feel inhibited to earn better rewards because of the high mining costs.

Whive is an open-source & peer- to-peer Proof of Work blockchain protocol that is incentivising the building of sustainable distributed energy solutions through trustless rewards powered by a “yes-power algorithm.” 

The protocol is built parallel to the Bitcoin code and requires miners to solve a Proof-of-Work (POW) mathematical block to identify the next block on the chain. Successful miners are rewarded with “$WHIVE” tokens.

What Are the Benefits of Mining $WHIVE?

  1. Supports CPU mining

Unlike most POW coins which require a lot of energy to mine, $WHIVE disfavours hardware with graphics Processing Units or (GPU) or Application-specific Integrated Circuit (ASIC) hardware thereby using less energy.

Although $WHIVE is forked to Bitcoin’s code, it deviates from BTC PoW (satoshi 2008) by layering the Yespower 1.0 algorithm that favours computing hash solutions on smaller computing hardware with central processing units (CPUs).  By enabling the utilisation of lesser energy consumption devices, $WHIVE helps push for more equitable mining and staking reward distribution across the world.

  1. Cheap to Set-Up

Whive utilises Yespower to enable low power, less expensive computing devices containing CPU to identify new blocks and be rewarded with WHIVE tokens. It disfavours the more expensive, high-powered hardware with GPUs. This means that anyone can deploy gadgets such as phones and personal PCs that  are relatively cheap and accessible to mine and generate rewards, anywhere. Today, over 20 countries around the world are organically mining $WHIVE tokens, including in some of the most remote and economically deprived regions.

There are two ways one can mine: through solo mining or cloud mining. So far, there are 7 mining pools for Whive, with the network’s hash rate sitting in the 15MH/s range, as of 20th June 2022.

Setting up a mining node for Whive is easy as all that is required is a PC and following a set of instructions  found on the project’s website.

  1. Disinflationary

The Whive protocol has a total capped supply of 100,000,000 $WHIVE tokens. The fixed number of coins ensures a dis-inflationary issuance policy similar to Bitcoin, meaning that $WHIVE  tokens will continue to become scarce as demand and utilisation picks up.

What’s more? Unlike other coins, $WHIVE will not even need a “token burn” mechanism as its supply is already too small –in fact, in less than two years, over 23,000,000 coins have already been mined!

Just like Bitcoin, The Whive block reward will depreciate by half every four years resulting in the last $WHIVE  token being issued in 2040. 

  1. Transparency and Integrity, No Monkey Tricks  

The Whive  protocol is a community-driven project with transparency and integrity being the major core values. From the onset, Whive developers had no pre-mining policy, which was aimed at giving every miner an equal opportunity to earn rewards for their work.

Furthermore, over 10,000 Whive community members, “The Whive Swarm” are actively engaged in Discord, Telegram, and Reddit where unethical behaviour is forbidden in a bid to keep the community focused on the project’s goals.  

The project’s team of developers is also keen on keeping a publicly viewable GitHub repo enabling users to track the Whive’s ’s development. Whive’s  real-time data can also be tracked on CoinMarketCap, CoinGecko, Nomics, Coinpaprika, and Coinbase.

  1. Liquidity

Whereas anyone can mine $WHIVE, monetising the coins is another issue altogether. Listing a coin on exchanges, especially with the rise of scam projects is not an easy feat. However, given the authenticity, long-term goals as well as evident commitment of the Whive  community, $WHIVE has been listed on several Centralized Exchanges (CEXs). 

These include P2PP2B, Dex-Trade, and Alterdice with more on the way. As such,  miners are able to buy, sell or swap their coins easily, therefore providing the much-needed liquidity to support the project. 

A Note on Bitcoin’s Hashrate and Power Demand

Following a two-week decline in the mining hash rate, which reduced the required computing power for mining BTC blocks to 199.225 exahashes per second (EH/s), the overall energy usage of the Bitcoin (BTC) network saw a sharp decline.

The Cambridge Centre for Alternative Finance’s statistics indicates that the year 2022’s lowest power usage for the Bitcoin network was 10.65 gigawatts (GW). The BTC network used 16.09 GW of electricity at its peak.

Bitcoin network power demand 

Source: ccaf.io 

The declining hash rate is to blame for the abrupt drop in Bitcoin’s power consumption. The amount of processing power needed by BTC miners to effectively mine a block is measured by the mining hash rate, which is a crucial security parameter. On June 13, Bitcoin’s mining difficulty hit an all-time high of 231.428 EH/s. Thereafter, the difficulty decreased by more than 13.9 per cent over two weeks.

Conclusion

With the cryptosphere getting bombarded with all sorts of projects, it can be hard to decrypt all the information that is out there, especially for miners. Regulators around the world are pushing for greener blockchains, driving up incentives to develop protocols that use  less energy while offering real solutions for real-world problems. 

While Whive utilizes a very small amount of energy to mine, its ultimate goal is to drive the adoption of sustainable energy sources such as solar. Currently, Whive is powering Melanin Solar, a Distributed Energy Storage & Sharing Solution that enables communities to store and share their excess energy through a peer-to-peer model to underserved neighbours. Learn more about Melanin Solar HERE.

Whive goes beyond the instant gratifications of monetary gains by providing a wholesome package for miners which entails reduced spending, high rewards as well as being part of building a product that the world will use for generations to come.So, what are you waiting for, set up a WHIVE mining node on your PC HERE start generating rewards ASAP.


0 Comments

Leave a Reply

Avatar placeholder

Your email address will not be published.