Where is the next step for cryptocurrency and blockchain after “mining” has been banned across the country?

The main mining positions in Inner Mongolia, Qinghai, and Sichuan have all been shut down recently. A total ban on mining in China is a foregone conclusion.

On July 14, Hefei released the article “Comprehensively clean up and shut down virtual currency mining projects in our province” online. The article mentioned that in the next three years, the province’s electricity supply and demand situation will be severe, and there will be a large supply guarantee gap. While focusing on “internal construction” and “external introduction”, Anhui will comprehensively clean up and shut down virtual currency mining projects, and promote the implementation of residential electricity prices in new residential communities and public building heat pump systems.

The main mining positions in Inner Mongolia, Qinghai, and Sichuan have all been shut down recently. A total ban on mining in China is a foregone conclusion. How will the global mining landscape change in the next step? How will cryptocurrency be interpreted? Where will the development of the underlying technology blockchain lead?

Many miners and industry insiders told CBN reporters that large mines have been closed before, and small and medium mines have also been closed recently. Kazakhstan and other places seem to be the next “going out to sea” destinations for miners.

Although China bans cryptocurrency trading and “mining”, the exploration of blockchain technology continues. At the just-concluded World Artificial Intelligence Conference, Da Hongfei, the founder and CEO of Distribution Technology, said in an interview with a reporter from China Business News that “blockchain manageability” is a recent focus. The current global public chain market scale and growth rate are much higher than the alliance chain business, but the public chain has many limitations, such as illegal crimes, hacker theft, network risks, and blocked supervision, etc., and it brings a huge amount of irreparable losses. Therefore, how to increase the manageability of the blockchain will be an important issue for the blockchain to move toward the mainstream.

Various mines have been shut down one after another

In June of this year, most mines in Inner Mongolia and Qinghai have been shut down. Subsequently, Sichuan Province, which has gathered many cryptocurrency mines due to abundant water resources, also began to implement clearance operations. Sichuan Province’s clearance notice requires the completion of the screening and shutdown of key objects. The 26 virtual currency “mining” projects that have been investigated and reported by the State Grid Sichuan Electric Power Company shall be screened and closed before June 20. At the same time, it is required to carry out self-examination and self-correction of power generation enterprises, and to conduct a comprehensive clean-up and investigation. The self-inspection, rectification and clean-up and shutdown will be reported separately before June 25.

After the large mines were first shut down, now small mines are also shut down. “Some small mines in Sichuan will also be shut down next week.” A miner told reporters.

In fact, some miners have already chosen to go to sea. “A lot of people go to Kazakhstan,” said the above-mentioned miner.

North America is also a destination for many miners. It is reported that miners are flocking to Texas in the United States, where low electricity bills are attracting global mining companies. In the global Bitcoin mining network, Chinese miners have always occupied a dominant position. According to multiple authoritative data, basically two years ago, the computing power owned by Chinese mining pools accounted for 65% of the total Bitcoin computing power, but The current territory of power is gradually changing.

It is understood that Bitmain, the world’s largest mining equipment company, established a 50 MW facility in Texas in 2019 and plans to gradually expand the scale.

Bitcoin is still in a period of shock

With the tightening of China’s supervision and the disturbance of overseas liquidity, Bitcoin fell after reaching a historical high of US$64,000 in May, and has recently been around US$30,000.

Although the currency price has been cut in half, this round of big rise started in March 2020 at a low of less than $4,000. Therefore, the current currency price is not low, which is also related to the flood of overseas liquidity. Compared to 2017, the Fed’s balance sheet has now doubled, the European Central Bank has increased by 70%, and the Bank of Japan has expanded by 40%.

All walks of life generally believe that in the second half of the year, this turbulent consolidation pattern will continue, and volatility and liquidity changes will dominate the market. Matt Weller, head of global research at Jiasheng Group, told reporters that the overall US inflation rate in June reached 5.4%, the highest in nearly 13 years; the core CPI rose 4.5% annually, the highest in 30 years. The patience of the Fed will be challenged.

In addition, Bitcoin has gradually become a tool for money laundering and hackers to demand ransoms. Judging from the information publicly disclosed by the U.S. Department of Justice, the FBI has previously recovered a total of 63.7 bitcoins, valued at approximately $2.3 million. During the investigation, the investigators tracked Bitcoin through the public account of encrypted currency, and at the same time identified the cryptocurrency wallet used by the hacker organization to collect payments. In the end, the FBI obtained the private key of the wallet.

Industry insiders told reporters that although it is impossible to know how the FBI obtained the private key, some valuable information can still be obtained from public information. For example, investigators track the Bitcoin involved and identify the address used by hackers to collect payments by retrieving the transaction records of the encrypted currency public ledger. These operations all mean that the investigators and relevant departments have already had more supervision over Bitcoin. Deep understanding, and can use technical means to counter crimes related to cryptocurrency.

China explores “manageable blockchain”

Although mining and Bitcoin transactions are fully and strictly regulated, China’s exploration of the underlying blockchain technology will continue.

During the World Artificial Intelligence Conference, discussions from all walks of life focused on blockchain empowerment-blockchain technology can be deeply integrated with the industry to empower the real economy, bring positive and effective help to all walks of life, and promote mutual trust in finance. , Data security and industrial cooperation.

Specifically, in the blockchain sub-forum, the Shanghai Financial Information Industry Association and a number of industry research institutions released the “2021 Global Blockchain Innovation Application Demonstration Case Collection”, such as “Gangbao Digital Supervision Warehouse Movable Property Pledge Financing Platform”, etc. The case was selected. The platform is composed of “underlying blockchain platform + business platform + Internet of Things monitoring module + WMS system + digital supervision warehouse”, using blockchain technology to empower and increase credit, through the digital monitoring platform of professional bulk commodity storage enterprises , To help financial institutions carry out real-time monitoring of goods, mark-to-market prices on a daily basis, and trace the origin of goods. Warehouse receipt information cannot be tampered with, to ensure “consistency of manifests”, assist financial institutions in risk control, and solve long-standing working capital of large traders Insufficient, difficult to obtain bank financing and other pain points. It is understood that such applications are also more suitable for replication and promotion.

In addition to the above alliance chains, manageable public chains are also the focus of discussion from all walks of life. At present, the global public chain market scale and growth rate are much higher than the alliance chain business, but the public chain has many limitations, such as illegal crimes, hacker theft, network risks, and obstructed supervision, etc., and it will bring a huge amount of irreparable losses. As of the first quarter of 2021, the value of encrypted assets permanently lost due to operational accidents may have reached 200 billion U.S. dollars, and the economic loss in the decentralized financial sector due to contract mechanism loopholes reached 132 million U.S. dollars. Therefore, how to increase the manageability of the blockchain will be an important issue for the blockchain to move toward the mainstream.

Where is the next step for cryptocurrency and blockchain after "mining" has been banned across the country?

Da Hongfei stated that the manageability of the blockchain specifically includes several aspects such as reviewable, editable, authorizable, manageable, and auditable. “We need to explore a’manageable blockchain based on a two-layer ledger’. The permission-free ledger layer (DAG structure) and the regulatory-compatible consensus layer (BFT/POA) that require permission are composed to ensure that the blockchain nodes obtain regulatory approval.” This attempt will be based on consensus under the condition of clear consensus mechanism and governance rules. On-chain governance can shield society’s harmful information, block or intercept illegal transactions, stop services that do not meet regulatory standards, filter sensitive information, and disable services for specific identity participants.

Author: CBN Zhou Ailin

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/where-is-the-next-step-for-cryptocurrency-and-blockchain-after-mining-has-been-banned-across-the-country/
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