Biden Administration to Release Report on Bitcoin Mining in August

The Biden administration has its sights set on the proof-of-work (PoW) mining industry. Costa Samaras, Senior Deputy Director for Energy in the White House Office of Science and Technology Policy (OSTP), said the White House is preparing to release a report on blockchain mining.

“It is important, if this is to be part of our financial system in any meaningful way, that it is developed responsibly and minimizes total emissions,” Samaras said.

“When we think about digital assets, it has to be a conversation about climate and energy,” he added.

Forward directions for blockchain

The report is expected to be released in August. It will allegedly explore issues related to mining, such as noise pollution emitted from mining rigs, energy efficiency of different consensus mechanisms, and more.

“The growing global focus on environmental, social and (corporate) governance, climate goals and agreements, and rising energy prices, has prompted policy makers to really start to understand the economic and energy impact of blockchain technology,” said Bryan Daugherty. the Director of Public Policy for BSV Blockchain.

“Reports like these greatly affect the industry at every level, from innovation to understanding. This is an opportunity to ensure continued U.S. leadership in national security, innovation, and global fairness if the committee is made aware of the significant security differences between consensus models and capabilities. durable and scalable of a properly implemented proof of work. protocol.

“Because of the global leadership of the United States, if the report reflects a misunderstanding of the capabilities of a properly implemented proof-of-work model and is widely classified as energy inefficient, the industry and the nation will suffer. an increase in national security critical infrastructure vulnerabilities. and the financial inequities and abuses the report sought to alleviate,” Daugherty explained.

The report released by the Biden administration will have a significant impact on the blockchain and digital asset space. It will highlight the pros and cons of the industry and outline how the sector should look like in the future. Many companies operating in the industry will most likely adjust their business operations in preparation for this future.

Blockchain versus digital currency

Globally, governments are trying to reduce the amount of energy consumed by proof-of-work mining. Daugherty thinks it’s because there’s an educational gap between industry players and lawmakers.

“Cryptocurrency and blockchain are not synonymous, and not all Proof of Work blockchains are the same, unfortunately for anyone exploring this industry, including lawmakers, it’s not clearly written on the door,” said Daugherty said.

When most people think “blockchain,” they immediately think of the various coins and tokens available on exchanges like Binance and Coinbase (NASDAQ: COIN) that they can speculate on. But when you look at blockchain technology through the lens of the speculator, you miss the utility it can provide to businesses and consumers to reduce costs and increase profits while increasing transparency, security, and transparency. efficiency of all operations.

“The Crypto For Congress website seeks to “raise awareness and broaden access to blockchain technology, while broadening participation in the political process” If one were to review their toolkit for Congress, there is no has no information regarding the usefulness of blockchain, rather it aims to help cryptocurrency political supporters to accept campaign donations like bitcoin (BTC) In my opinion, this sends the wrong message about the real utility provided by blockchain,” Daugherty said.

“In comparison, a scale proof-of-work blockchain such as Bitcoin (BSV) is significantly more durable (more than 1100 kg of Co2 per BTC transaction against less than 2 kg of Co2 per BSV) and has already been in competition with legacy technology power consumption, greatly improving the current power usage. For example, Certihash ‘Sentinel Node’, which is currently being developed by IBM and SmartLedger, helps to reduce the detection time of ‘an average 212 day network breach almost instantaneously.This type of blockchain powered utility can have a resounding effect on future information security data breaches, but wouldn’t be possible without the security and stability provided by Proof-of-Work,” he revealed.

Daugherty thinks that if more lawmakers, businesses, and consumers knew that blockchain technologies could be used for more than speculating on the price of coins and tokens, the global sentiment around proof-of-work mining would be much more distorted than it is. today.

“While it is extremely positive that cryptocurrency, blockchain and energy consumption are covered in scope, I hope policymakers will be able to overcome some of the immediate hurdles while trying to navigate and understand all the different components of this technology,” Fille said.

“We hope the report will reveal the differences between consensus models, setting efficiency standards based on transaction volume and throughput, as well as using existing legislation to cover digital assets, rather than creating new rules.

“On the other hand, it is also possible that the United States may choose to increase regulation against proof-of-work consensus protocols, neglecting scalable implementations, and both stifling innovation and diminishing national security. critical,” Daugherty added.

Watch: Presentation of the BSV Global Blockchain Convention, Sentinel Node: Blockchain Tools to Improve Cybersecurity

New to Bitcoin? Discover CoinGeek bitcoin for beginners section, the ultimate resource guide to learn about bitcoin – as originally envisioned by Satoshi Nakamoto – and blockchain.

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