Bitcoin and all other cryptos that utilise a prrof-of-work algorithm are a good way to abuse the world's energy reserves and even worse they are adding to the environmental crisis.

Let us break it down into the cost per transaction. Below are the current estimates for the top 2.

Bitcoin Key Network Statistics


Ethereum Network Statistics


src: https://digiconomist.net/bitcoin-energy-consumption

​Now factor in that these per transaction figures are for the miner that is first in confirming the block. All the work done by the other min​ers is mostly thrown down the drain.

Also these estimates are on the lower side. but even if we were to work with 400KWh of power per transaction, relate that to how long you could run your house with such a figure. On my part this would be a month of heavy usage.

The reason i call this a waste is that there are better means of achieving the same blockchain based trust without the PoW algos. The best candidate so far has been Hashgraph but unfortunately the founders of this tech got greedy and decided to patent it instead of releasing it as open-source. 

All the same, there are other options that are still viable and hopefully we shall see these being implemented to keep the blockchain dream alive.

Regards,

Kevin

On 29 January 2018 at 12:30, Robert Muthuri via kictanet <kictanet@lists.kictanet.or.ke> wrote:
We're probably trying to conflate different business models which won't work. 
  • With traditional financial systems you outsource your trust to a middle man that then charges monopoly prices; 
  • with blockchain we're using mathematical proofing functions to gain some 'trust' and currently suffer hacks until the tech matures. 
What are the costs of running the first system beyond normal running costs, 2008 financial crisis, plus factoring cost of regulatory compliance which has risen constantly, at least for the time i've been studying it (2012)? 

Also, what are the eventual benefits of blockchain applications allowing our entrepreneurs ease of entry which they'd otherwise not have, efficiency, transparency (read corruption and related governance issues), disintermediation and globalisation? 

Kind regards, 
Robert

On Mon, Jan 29, 2018 at 12:09 PM, Sidney Ochieng via kictanet <kictanet@lists.kictanet.or.ke> wrote:
I don't know. Who is to say what provides value to people? If someone is willing to pay for it, it's valuable therefore I wouldn't say its a waste just because it doesn't provide value to me personally. Could that energy be put to better use? Perhaps. 

On 29 January 2018 at 11:45, Adam Lane <adam.lane@huawei.com> wrote:

That energy has a purpose, and provides value to a consumer somewhere. The energy used in “mining a currency” provides no value at all, but is calculating sums for no reason other than to control supply of such currencies. It’s not to say that banks, data centers or ATMs should not be more energy efficient, but it is important to question why a process is designed to waste resources.

 

Senior Director, Public Affairs

Huawei Southern Africa

Mobile: +254-7909-85886 

 

From: Sidney Ochieng [mailto:sidney.ochieng@gmail.com]
Sent: Monday, January 29, 2018 10:37 AM
To: KICTAnet ICT Policy Discussions <kictanet@lists.kictanet.or.ke>
Cc: Adam Lane <adam.lane@huawei.com>


Subject: Re: [kictanet] World's biggest ever digital currency 'theft'

 

I find numbers like this thrown around without context mean nothing. How much of the worlds current energy is used on other financial transactions, running banks, credit cards, atms etc? Would anyone say that energy is wasted? 

 

On 29 January 2018 at 09:41, Adam Lane via kictanet <kictanet@lists.kictanet.or.ke> wrote:

Let’s not forget the biggest flaw of all with crypto currencies is that they depend on basically wasting energy (Which may or may not be sustainably produced, even so it could be better used than on crunching pointless numbers):

 

·        In 2017:

    • 42.67 TWh: The annual energy consumption of Bitcoin and Ethereum combined
    • 0.19%: The percentage of the world’s electricity used by Bitcoin and Ethereum
    • 8.49: The number of U.S. households that could be powered for a full day with the same energy as single bitcoin transaction

 

 

Senior Director, Public Affairs

Huawei Southern Africa

Mobile: +254-7909-85886 

 

From: kictanet [mailto:kictanet-bounces+adam.lane=huawei.com@lists.kictanet.or.ke] On Behalf Of Admin CampusCiti via kictanet
Sent: Sunday, January 28, 2018 6:12 PM
To: Adam Lane <adam.lane@huawei.com>
Cc: Admin CampusCiti <info@campusciti.com>
Subject: Re: [kictanet] World's biggest ever digital currency 'theft'

 

Lesson:-

 

That we are not safe anywhere from thieves? :-)

 

Seriously though one of the fundamental flaws of cryptocurrencies is that once you have been liberated from your cryptos you have no recourse. This is a design flaw that we are all hoping will be resolved. Sooner rather than later.

Ali Hussein

Hussein & Associates

+254 0713 601113 

 

Twitter: @AliHKassim

Skype: abu-jomo

LinkedIn: http://ke.linkedin.com/in/alihkassim

Blog: www.alyhussein.com

 

"Discovery consists in seeing what everyone else has seen and thinking what no one else has thought".  ~ Albert Szent-Györgyi

 

Sent from my iPad


On 27 Jan 2018, at 8:53 PM, Victor Kapiyo via kictanet <kictanet@lists.kictanet.or.ke> wrote:

Dear Listers,

 

One of Japan's largest digital currency exchanges says it has lost some $534m (£380m) worth of virtual money in a hacking attack on its network. 

 

Coincheck suspended deposits and withdrawals for all crypto-currencies except Bitcoin as it assessed its losses in NEM, a lesser-known coin. If the theft is confirmed, it will be the largest involving digital currency. Another Tokyo exchange, MtGox, collapsed in 2014 after admitting that $400m had been stolen from its network.

 

 

What lessons can we learn from this?

 

Regards,

 

 

Victor Kapiyo

Partner | Lawmark Partners LLP

Advocate of the High Court of Kenya, Commissioner for Oaths & Notary Public

Suite No. 8, Centro House, Westlands, Nairobi | Web: www.lawmark.co.ke 

====================================================
“Your attitude, not your aptitude, will determine your altitude” Zig Ziglar

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