Asset Tokenization and Public Distributed Ledger is one of the key feature of Blockchain Technology. It not only ensures creation of secure digital assets of all types and size, but also facilitates frictionless transaction of these digital assets among community members and crypto enthusiasts alike. Bitcoin, the first known real world usage of Blockchain, was anonymously introduced to a specific list of renowned people who believed in decentralization and cryptography. Over the years Bitcoin gained great momentum and public response and in the process turned Blockchain the Apple of everyone’s eye in the global technology landscape.
The rise and rise of Bitcoin and subsequent cryptocurrencies triggered a race for faster blockchain adoption among crypto enthusiasts, entrepreneurs and companies alike. This is a technology adoption wave unwitnessed even during the great Industrial Revolution And the Internet Revolution of the early 90’s. But as they say “With Great Powers Come Even Greater Responsibilities”, the underlying needs for a seamless Blockchain Ecosystem has a set of prerequisites which if left unattended can trigger a whirlpool of unwanted events affecting one and all from Blockchain solution seekers, investors to solution providers at large. Key impact areas include primarily transaction speeds, block verification and subsequent addition.
Key impact areas include primarily transaction speeds, block verification and subsequent addition. This is particularly evident in blockchain environments with a large active user base. This inadvertently affects Miners too. Miners are the lifeline of a blockchain ecosystem. They are incharge of adding transaction records of a specific public ledger of past transactions or blockchain. Any significant increase in number of transactions requires proportional increase in mining speed for the Blockchain ecosystem to function uninterrupted.
Miners are important support pillars for any Blockchain based real world solution. It employs large units of powerful computing machines to verify transactions for a self-sustaining middlemen free decentralised environment. As the number of transactions increase the need for faster and efficient mining increases too. This pushes Miners to employ more powerful computing machines which overshoots their operational costs. In order to to keep the wheels moving either this cost has to be borne by the platform users or in the worst of cases shut operations all together. There also have been instances of Miners teaming up to form a cartel and selectively selectively exclude some transactions. Mining oligarchs is one threat that decentralised blockchain structures must be wary of.