Published on: 2021-05-18T16:47:29+00:00
A draft proposal has been introduced to the Bitcoin development community, outlining a new proof-of-work (PoW) called Optical Proof of Work (oPoW). The goal of this proposal is to address Bitcoin's heavy energy consumption, which has led to mining centralization and limited participation in the network. The oPoW aims to shift the focus of mining expenses from energy to hardware, allowing for a more energy-efficient and secure system.By implementing oPoW, the operating costs of mining can be reduced, making it easier for new miners to enter the market. This would be achieved by investing in low-energy photonic miners, thus reducing the reliance on massive energy consumption. The authors emphasize the importance of maintaining the security of PoW while decreasing its environmental impact.The PoWx organization has proposed oPoW as an alternative method for cryptocurrency mining. It utilizes photonic processors that leverage waveguides in silicon to perform matrix-vector multiplications essential for mining. The organization has even developed example code for obtaining the matrix M using a pseudo-random number generation algorithm.The distribution of mining activity relative to the cost of operating a single mining hardware piece (CAPEX/OPEX ratio) is also discussed in the proposal. It suggests that a shift towards capital expenses rather than energy expenses can lead to reduced energy consumption and geographically distributed mining.To implement oPoW on the Bitcoin network, a hard fork is not necessarily required. It can be added as a dual PoW alongside the existing system through a soft fork. The PoWx organization anticipates demonstrating commercial low-energy mining on their network within the next six months due to significant advancements in optical and analog matrix-vector-multiplication chipsets.In light of recent events, such as the hashrate crash in China and Tesla's change in accepting Bitcoin as payment, the proposal highlights the real-world downsides of the current energy-intensive PoW. The authors recommend updating the underlying PoW protocol to ensure scalability and sustainability as Bitcoin evolves into a global currency.Overall, the oPoW proposal aims to address the environmental concerns associated with Bitcoin mining by shifting the focus from energy to hardware expenses. By doing so, it seeks to increase participation in the network, reduce energy consumption, and maintain the security of the PoW system. The authors plan to release open-source hardware designs for oPoW miner prototypes and continue their efforts to advance low-energy mining capabilities.
Updated on: 2023-08-02T03:53:12.628777+00:00