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“The whole mining process will be completely different in the next 5 years,” believes Stefano Virgilli, CEO at VOX ICO Consulting
Stefano Virgilli is an entrepreneur, ICO advisor and communications and innovations expert. In the framework of the Blockchain & Bitcoin Conference Prague on May 17, he will deliver a presentation “Blockchain and cryptocurrency mining explained to a 6 years old”, clarifying concepts in simple terms. In the interview, Stefano explained mining profitability and competition, and talked about blockchain anonymity.
Interviewer: Blockchain & Bitcoin Conference Prague (BCP)
Speaker: Stefano Virgilli, CEO at VOX ICO Consulting (S. V.)
BCP: In one of the previous year’s interviews, Vitalik Buterin mentioned that the role and profitability of mining would be gradually decreasing. What do you think about this?
S. V.: I think that the volatility of the cryptocurrency price still plays a big role in the mind of the miners. Although in future mining will become a less substantial role for Ethereum and Bitcoin as main market leaders, new cryptocurrency may rise, with different solutions to the mining process. This could lead to very different scenarios than the one we are presented with today.
BCP: What will happen with Bitcoin blockchain if the amount of miners reduces by two times, for example?
S. V.: As far as mining is part of the transaction validation, coins must be mined. Mining is a competitive process, where the most powerful processor solves the most complex operation and from there gain a token of appreciation. With fewer miners, the rewards will be easier to achieve. It means, in business terms, less competition.
BCP: How, in your opinion, will cryptographic technologies change when a quantum computer will be developed?
S. V.: There is a lot of speculation about this topic. If it's true that USA went on the moon with a 17Kb processor, back then they could have wondered how far we can go with 10 thousand times that memory? It turns out that such memory makes good cellphone but couldn't send USA to the moon again. As humans we often FUD (fear, uncertainty and doubt) on rumors. We are fascinated by potential catastrophes, but very often nothing happens.
BCP: What will face mining in such a case?
S. V.: My best guess is that the whole mining process will be completely different in the next 5 years. So predicting that one technology will change, while the other stays still, it is a not realistic analysis of the future.
BCP: What do you think about the initiative of some countries that are going to adopt the deanonymization of blockchain users within their jurisdiction?
S. V.: As much as Bitcoin was created for anonymity, no system is ever perfect. If there are glitches, it will be a competition between who will be the faster to take advantage of them, versus the one that will patch the glitch. In practical and real life terms, secret service spies are supposed to be completely anonymous, but at times they are identified and face consequences. That doesn't crack a system, but simply highlight a glitch.
BCP: What will your presentation at Blockchain & Bitcoin Conference Prague be about?
S. V.: In my presentation "How do I explain blockchain mining to a 6 years old" I will be sharing with the audience, in the simplest possible terms, how CryptoCurrency mining takes place. I will invite some members of the audience on the stage and simulate an "analog" cryptocurrency mining. The purpose is to make it simple to understand and simple to explain to others.
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