this post was submitted on 03 Feb 2024
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[–] Lifecoach5000@lemmy.world 9 points 9 months ago (6 children)

Does someone feel like giving me an ELI5 why Bitcoin mining eats up so much electricity these days? Is it just because the problems the machines need to solve have gotten more complex? Do other cryptos tax the resources as bad? Is there a viable crypto that would be considered “green” at this point?

Sorry for overboarding my questions if anyone even attempts to answer this lol

[–] Tetra@kbin.social 11 points 9 months ago (1 children)

All crypto is essentially designed around competition for who gets to be the one mining it. Things escalate, and that's how you end up with these ridiculous crypto farms that use as much power as entire cities. No crypto currency is "green". And UNLIKE cars, lights or banking, crypto serves no purpose, it's currency that doesn't get spent, it's basically just there to fuel speculation for tech bros.

Crypto is a complete waste of energy, it's not 'big money spinning Bitcoin as negative', it's just objectively idiotic, don't listen to that comment.

If you haven't, I recommend watching Dan Olson's documentary "Line Goes Up" on Youtube.

[–] SuckMyWang@lemmy.world 1 points 9 months ago (1 children)

No currency is green. Crypto, fiat or visa etc it all burns resources to maintain

[–] Tetra@kbin.social 6 points 9 months ago

Difference is that crypto is barely even a currency, it's basically just a vehicle for speculation. Visa is actually useful.

[–] ABCDE@lemmy.world 5 points 9 months ago

Price goes up, chances go down, more people/machines trying to mine, more electricity usage.

[–] zergtoshi@lemmy.world 4 points 9 months ago (1 children)

If you want to have rather green cryptos, you need to exclude those who rely on proof-of-work to secure the network.
Btw. Ethereum showed that a transition from proof-of-work to proof-of-stake is possible.
If you're not interested in the complexities that a lot of cryptos have, because you just want to transfer value efficiently, have a look at Nano (https://nano.org)

[–] Gamers_Mate@kbin.social 1 points 9 months ago (2 children)

I have heard nano uses a lot less energy compared to Crypto. Though how does it compare to visa/traditional payment systems?

[–] makeasnek@lemmy.ml 0 points 9 months ago* (last edited 9 months ago) (1 children)

The problem with nano is that it makes the assumption you can just give away transaction space for free. You can't. If you do, spammers and other low-value uses take up all the space. The more space gets taken up, the more expensive it is to run a node, and the more centralized your network becomes. So what did they do when they ran into this problem? They added a proof-of-work component. The very thing they created their coin to avoid! If you look at almost all of these non-PoW cryptos, the only reason they can get better transactions per second or low tx fees is because they are very centralized or because nobody is actually competing for that space because nobody uses them.

Bitcoin solves this scaling/fee problem with Bitcoin lightning, which is a layer on top of the main chain. The main chain provides security, while actual transactions live on the second layer. Fees on lightning measure in the pennies and confirm instantly. The scale you can take lightning to is basically infinite. That's actually useful as a currency.

[–] zergtoshi@lemmy.world 1 points 9 months ago (1 children)

Nano has alwas has a computational part associated with transactions. It once was used to prioritize transactions. Nano has evolved to a different prioritization scheme. That computational part will be phased out.
The lightning network is a silly attempt to merge bad parts of cryptocurrencies with bad parts of traditional finance: you need the electric energy guzzling Bitcoin and middlemen just like in traditional finance - or would you care to open and close your own channels, pay watchtowers etc. or "simply" use the channels of middlemen?
And how would you have cheap transactions without those middlemen, if operating your own channels requires transactions on layer 1?

[–] makeasnek@lemmy.ml 1 points 9 months ago (1 children)

Nano has alwas has a computational part associated with transactions. It once was used to prioritize transactions. Nano has evolved to a different prioritization scheme. That computational part will be phased out.

We'll see. It had to be "phased in" in the first place for a reason. Either you limit chain space and charge for it, or your chain grows an infinite size. There is no way around that problem.

And how would you have cheap transactions without those middlemen, if operating your own channels requires transactions on layer 1?

Because once a channel is opened, you can have essentially infinite transactions within it. So there is not a 1:1 relationship between channel opening/closing costs (layer 1) and transaction relaying costs (lightning). You need the layer 1 underneath to provide the security for the lightning transactions. Without layer 1, if somebody you are transacting with doesn't follow the rules, you have no way to enforce the rules. Incentives are setup in such a way that it's incredible rare you ever need to to go L1 to get that enforcement, since the deck is stacked against anybody who tries to break the rules.

[–] zergtoshi@lemmy.world 1 points 9 months ago (1 children)

I stated the reason for it being phased in: prioritizing transactions.

Tell me how to keep a channel open without risking loss of funds through flood and loot attacks.

[–] makeasnek@lemmy.ml 1 points 9 months ago* (last edited 9 months ago)
  • If you have a custodial wallet: Literally nothing, the wallet handles everything. You don't even need to know what a channel is.
  • If you have a self-custody wallet: Install it on your phone and make sure you can connect to the internet once every 5 days. You don't have to open the wallet, some background service does everything automatically. Most wallets have built-in automatic watchtowers, so you don't ever need to connect to the internet and somebody else watches the channel for you.

The attacks you can do in lightning are very limited. Basically the only one you can do is force close a channel and broadcast an old state on-chain. But your other party in the channel can correct you by publishing the more recent state. They have several days to do this. If you tried to cheat this way, not only do you not get the coins you wanted, but there is a penalty as well. You lose money. So nobody ever does it.

There's about 200M USD currently locked up in lightning contracts. If you think you can hack lighting, have at it. The best hackers in the world have tried, they have all failed.

https://bitcoinvisuals.com/ln-capacity

[–] zergtoshi@lemmy.world 0 points 9 months ago

Indeed it does use little energy, because its consensus is in some ways similar to PoS, so there's no mining involved. If you want to know more about it, have a look here: https://docs.nano.org/protocol-design/orv-consensus/
I believe that the Nano network can process around 100 transactions per second; at least that's a result from throughput tests I remember. That's way less than VISA can do, but a lot more than most other cryptocurrencies can process.
And in difference to the vast majority of cryptocurrencies, Nano has no built-in limits of transactions per second. As soon as hardware gets more powerful (faster CPUs, faster network connection, faster SSDs), Nano gets faster!

[–] vrighter@discuss.tchncs.de 3 points 9 months ago

the power is needed because trustless distribsuted ledger is mathematically impossible.

So there has to be some mechanism that actually prevents someone being able to just change anything at will. This is the mathematical impossibility part. What bitcoin does to get around it is to (artificially) make it cost resources to write into the ledger by making everyone solve a random useless puzzle. And with each block depending on the one preceding it, changing implies also changing all the subsequent ones.

This of course assumes that the chain is ever growing, otherwise the attacker just needs time to catch up. Bitcoin's security guarantees come from ensuring the network keeps growing faster than any one single entity could write to it. The only thing that keeps anyone from writing whatever is that they just can't do it fast enough.

This implies that the network is only (probabilistically) secure as long as there are people mining it. If people stop mining, bitcoin instantly loses all of its security.

It then follows that the security of the chain depends on its ability to keep its users wanting to mine it. This is handled by it being a currency. something that humans would have a psychological need to hoard.

This is also why any non-cryptocurrency application of blockchain simply cannot possibly work.

[–] vrighter@discuss.tchncs.de 1 points 9 months ago

the power is needed because trustless distribsuted ledger is mathematically impossible.

So there has to be some mechanism that actually prevents someone being able to just change anything at will. This is the mathematical impossibility part. What bitcoin does to get around it is to (artificially) make it cost resources to write into the ledger by making everyone solve a random useless puzzle. And with each block depending on the one preceding it, changing implies also changing all the subsequent ones.

This of course assumes that the chain is ever growing, otherwise the attacker just needs time to catch up. Bitcoin's security guarantees come from ensuring the network keeps growing faster than any one single entity could write to it. The only thing that keeps anyone from writing whatever is that they just can't do it fast enough.

This implies that the network is only (probabilistically) secure as long as there are people mining it. If people stop mining, bitcoin instantly loses all of its security.

It then follows that the security of the chain depends on its ability to keep its users wanting to mine it. This is handled by it being a currency. something that humans would have a psychological need to hoard.

This is also why any non-cryptocurrency application of blockchain simply cannot possibly work.

[–] Immersive_Matthew@sh.itjust.works -4 points 9 months ago (1 children)

It is the cost of securing the network. It is intentional as if it was low power and easy to mine, 1 person or organization could take over the network and thus it would loose its decentralization. Nothing wrong with using power as long as it is green. No one is complaining about how much energy social media uses, or electric cars, or the fiat banking systems or all the lights left on etc etc. Power usage is not the issue here, it is power generation. You best believe that big money is spinning Bitcoin as negative as possible as it is a threat to their establishment. Don’t be a sucker for the BS.

[–] assassinatedbyCIA@lemmy.world 13 points 9 months ago (2 children)

It still a problem if it’s using green power as it’s preventing that green power from replacing fossil fuels in more useful and essential parts of the economy. Therefore essentially increasing demand for fossil fuels. Additionally by increasing the nations total energy use it’s making the task of decarbonising energy just that little bit harder.

[–] makeasnek@lemmy.ml 1 points 9 months ago* (last edited 9 months ago)

The problem with green energy is that it produces on its own schedule, divorced of when people actually want electricity. Bitcoin miners are "buyers of last resort". They have to compete with every other miner on the planet, they don't buy electric at peak usage hours (which is when you fire up the non-renewables to meet demand). If anybody else was there to buy that electricity, Bitcoin miners don't. They can only afford the cheapest electricity and electricity which has nowhere else to go.

Bitcoin mining is part of the green revolution. By always having a buyer of last resort, it makes it easier to invest in renewable infrastructure knowing that somebody will always buy the power even if demand isn't ordinarily there to meet supply. It allows you to build your grid out to be almost entirely renewables. It's a form of energy storage. And it means when regular people buy power, it's cheaper, because they don't have to make up for that time period when electricity was being produced but there was nobody to buy it. Regular people don't have to subsidize the cost of a solar panel farm that is only useful for a few hours a day when demand is at the peak and otherwise produces energy there is no use for.