Mining bitcoin, or any other cryptocurrency, on a PC is no longer viable, but new technologies are making the process of creating new coins accessible again. One of these new technologies, developed by the PLC Ultima team, is coins.
As you will discover in this article, this new technology is available even on basic mobile phones.
Major Barriers to Cryptocurrency Mining
Mining in the world of cryptocurrencies is the process of solving complex mathematical computing problems using specialized hardware, video cards or ASICs.
Mining machines compete with each other to be the first machine to solve the problem, as the first to find the solution receives the reward. The more computers involved in the mining process, the more complicated the competition between miners. The level of competition can be measured by the “Hashrate”, an indicator that shows the number of attempts made per second to solve the problem.
In October, the Hashrate behind the Bitcoin network reached its highest point in history, reaching 321.15 exahash per second. This means that the competition between Bitcoin miners is getting tougher and currently unavailable to small miners, limiting this lucrative niche of the cryptocurrency industry to just a few investors who already have many millions in their pocket.
This is how small miners got kicked out of the mining game.
Another type of mining, based on the Proof-of-Stake algorithm, is said to have been created to solve this inaccessible mining problem. In PdP networks, transaction blocks are sent to the blockchain through validators, which are not chosen for their computational power, but rather for the number of coins sent and locked to a specific address.
In September 2022, Ethereum, the second largest cryptocurrency by market capitalization, switched to PdP and miners with their graphics cards and ASICs were replaced by validators. The Ethereum blockchain network now consumes 99% less electricity compared to the Proof-of-Work version on the network.
But even then smaller investors have limited opportunities. To become a validator, you must freeze 32 ETH worth $38,000 USD in a specific smart contract. Therefore, small miners are left at a disadvantage even on PdP networks.
If global adoption is what the crypto world dreams of, then it is necessary to reinvent mining so that the barrier to entry is lowered so that millions of potential users can enter the industry. Otherwise, the dream of a decentralized world with available financial services will only be realized by a small number of enthusiasts.
With dozens of new ideas in development, new technology is now available. The PLC Ultima ecosystem team, a decentralized fintech platform launched by investor, business coach and blockchain expert Alex Reinhardt, has developed a new technology that enables the creation of new currencies through special applications on mobile devices in ordinary mobile phones.
What is Coins?
Like other decentralized systems, PLC Ultima relies on the active participation of its community. It is the crypto community that takes care of the functionality of the blockchain network, completing transactions in blocks, writing blocks to the network, etc.
To maintain a high level of decentralization, the PLC Ultima ecosystem team has developed a technology called Coinage. It allows anyone to be an active member of the crypto community without having to buy expensive mining equipment or lock their coins worth tens of thousands of dollars.
To turn the mobile phone into a fruitful farm, the user needs to install two mobile applications (Ultima Farm and Ultima Wallet), register in the system and replenish the wallet with any number of coins from the Ultima PLC ecosystem. It is similar to the way the Ethereum blockchain works. But there is a big difference.
There is no minimum threshold to participate in the coining process in the PLC Ultima ecosystem.
It is possible to start mining with any number of coins. Moreover, while coins must be frozen for participation in the Ethereum network, in the PLC Ultima network there is no blocking of funds: the user’s coins remain under the full control of the user. The user is the sole owner of all access keys to the wallet and all coins in it.
The PLCU and PLCUX Coins
Like blood in the human body, life in the PLC Ultima ecosystem is carried by two liquid assets called PLCU and PLCUX coins. Both currencies perform critical infrastructure activities and complement each other.
PLCU is used as a currency for transferring value and paying transaction fees. It is a deflationary currency, with all fees paid with PLCU burned to avoid inflation in the secondary market.
PLCUX, on the other hand, is used to generate new coins. While both coins are minted, only PLCUX is available for new users.
The reward for minting, for keeping PLCUX in the wallet, is paid monthly, corresponding to the number of coins stored in the wallet and depending on the level of digital certificate purchased by the miner. This certificate acts as a form of enrollment plan, unlocking access to the coin technology. The higher the level, the more coins can be stored in the wallet and the higher the rewards can be.
Rewards are automatically distributed through a smart contract and the distribution process is free from any kind of manipulation.
All the new user engagement and nurturing mechanisms implemented in PLC Ultima explain why the ecosystem is growing so fast, both in the number of users and the number of applications on the blockchain. The ecosystem is already home to about a dozen fintech services with a base of thousands of users, including the very high limits PLC crypto debit card, crowdfunding platform Platin Hero and digital marketplace PlatinDeal.