BitCoin energy consumption vs. BitCoin Cash

BitCoin energy consumption vs. BitCoin Cash

I have watched BitCoin's heavy use of electricity for about a year now, and se today BitCoin uses more electricity thanAustria. But I was told BitCoin Cash has a cost per transaction of one thousandth of a penny, regardless of the transaction size.

Is this true?

Does BitCoin Cash use a Blockchain database?

What makes it so energy efficient?

Thanks.
newbiewebSr. Software EngineerAsked:
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Dr. KlahnPrincipal Software EngineerCommented:
What makes it so energy efficient?

It is not energy efficient, and definitely not more energy efficient than Bitcoin.  It uses exactly the same amount of power per hash because it uses the same SHA-256 algorithm.

The reason that -- worldwide -- BCH uses less power, is because far fewer people mine it.  This indicates (to me at least) that most miners regard BCH as unproven and a riskier use of mining resources.  This (again imo) is confirmed by the continuing fall of BCH on the crypto exchanges.

But I was told BitCoin Cash has a cost per transaction of one thousandth of a penny, regardless of the transaction size.

Only so long as very few people use it.  If it ever becomes popular on the order of Bitcoin, -- just like Bitcoin, people will have to pay to get their transactions into a block.
McKnifeCommented:
I am interested in this this - where did you read this, newbieweb? I immediately found sites that say, it is about the same consumption of energy per transaction as bitcoin.

Anyway, why does it matter, do you want to start mining and leave no big carbon footprint? That will not be possible.
Terry WoodsIT GuruCommented:
If you want to find an eco-friendly cryptocurrency, you might want to look at the ones using Proof of Stake instead of Proof of Work.  Look for one with a large community, otherwise its life is more likely to be short.

Looks like there's a list of them here: https://www.reliablecoin.com/proof-of-stake-coins-list/
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newbiewebSr. Software EngineerAuthor Commented:
> where did you read this, newbieweb

I was raising my energy use concerns of BitCoin to this guy who presented himself as very knowledgeable on the topic. He said BitCoin Cash has a transaction cost of a thousandth of a penny.

How does Proof of Stake reduce computations versus Proof of Work? what kinds of reductions in computations does this change bring?
McKnifeCommented:
"He said..." - let him show you proof, or at least confirm that with a few websites.
newbiewebSr. Software EngineerAuthor Commented:
I have lost touch with this guy, which also says something...

What about Proof of Stake versus Proof of Work? To me, this sounds much more concise.

What kind of computational advantage does the former provide over the latter?
andyalderSaggar maker's framemakerCommented:
The transaction fee is in coins and since BCH are worth far less that BTC that's one reason the transaction fee is small for BCH. The blocksize is also larger for BCH so whereas if you are in a hurry to trade BTC you have to pay a high fee to be included in the next block with BCH the blocks aren't normally full so very low transaction fee transfers get through. There's also very little trading in BCH which is also why the blocks aren't full.

Looks at the Dec2017/Jan 2018 fees, with BTC every block was full so fees skyrocketed. https://bitinfocharts.com/comparison/size-btc-bch.html

Bear in mind also that transaction fees have nothing to do with the cost of mining the coins.
btanExec ConsultantCommented:
Pow is what currently undermine the mining competition among miner and this drives the electricity usage needs.

PoS is created to counter it for energy savings, yes that right, there is no longer block reward, so, the miners take the transaction fees instead. This is why, in fact, in this PoS system miners are called forgers, instead of miner in the PoW scheme. It is based on
Nodes (or the validators) must pay a security deposit in order to be part of the consensus thanks to the new blocks creation

Can read more on difference below
https://blockgeeks.com/guides/proof-of-work-vs-proof-of-stake/
andyalderSaggar maker's framemakerCommented:
I hope my Antminers don't get undermined, don't want a huge hole in my basement ;)
Terry WoodsIT GuruCommented:
Proof of Work rewards miners for doing processing using a CPU or equivalent, which generally requires dedicated expensive hardware and uses lots of electricity. To earn more, miners purchase more hardware and use more electricity. In a competitive market, this means the amount invested depends on the value of the currency and the quantity of the mining reward. Over time, it trends towards becoming unprofitable for all but the most efficient mining businesses. This trend favours large efficient mining businesses, which actually reduces security of the network because a few large players may be able to work together to double spend currency.

Proof of Stake essentially rewards people who already own some of the cryptocurrency. While on the face of it this seems like it will just make the rich get richer (which is true), my understanding is the percentage reward tends to be quite low (eg 0.5% per year), and the other benefits of PoS may outweigh that disadvantage anyway. To earn ("forge") from an existing holding of such a cryptocurrency, it may need to be kept inactive for a certain amount of time (eg 3 months) to encourage long term stability of the currency. When someone holds a substantial amount of the currency, they have a strong interest in keeping the value high, so they are incentivised not to sell too much at once (which can crash the value, which is undesirable). As the article that @btan links to indicates, Ethereum may monetarily penalise a forger for breaking rules, which helps keep the network honest.

Proving ownership of cryptocurrency is easy and hardly requires any electricity, so a PoS cryptocurrency uses vastly less electricity than a PoW one.

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newbiewebSr. Software EngineerAuthor Commented:
I predict Bitcoin Cash will never be mass market until they change the term forgers. It is not inviting for people to warrant that label...

Thanks for the help.
McKnifeCommented:
How does that fit into an eco-friendly/not eco-friendly discussion, Anne?
andyalderSaggar maker's framemakerCommented:
I predict Bitcoin Cash will never be mass market until they change the term forgers.

I predict you have not understood that BCH, like BTC is POW and has miners, not forgers. I wondered at the time why you accepted an answer that had nothing to do with the original question.
Terry WoodsIT GuruCommented:
I understand the term "forging" is used when "mining" Burstcoin (a Proof of [disk] Capacity cryptocurrency), but I'm not sure which others might used it. I think "staking" might be the term used when mining Proof of Stake cryptocurrencies.
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