Bitcoin and Conduit Mining Comparison
Both Conduit and Bitcoin use the term "mining." The following table helps show how the mining process is different between the two.
| Area | Bitcoin Mining | Conduit Mining |
|---|---|---|
| Chain | One common replicated chain | A graph network of DLTs |
| Mining Algorithm | Proof of Work | Proof of Economic Activity |
| Mining Goal | Mining based on first mine to reach a mathematical goal of a hash that fits a pattern | Mining based on next time a Party reaches an economic goal of having purchased a certain amount of rewards for all Conduit Network Participants. |
| Race Between | All mines (only one wins) | Each Party mines on its own |
| Block Verified | After majority of nodes verify | After registry nodes issue CNDT |
| Speed to confirm block | Approximately 10 minutes | Approximately 1 second |
| Max Block Size | 1 Megabyte | N/A |
| Energy need per token | At least 143,000 kWh | Average of 78 kWh (1,833 times less energy) |
| Halfing Phases | 6 | 60 |
| Time of each phase | ~4 years | Takes longer for subsequent phases |
| New phase based on | Block count | Doubling of the economic activity |
| Tokens at genesis block | 50 | 16,777,216 |
| Blocks per phase | 210,000 per phase | Doubles each phase (starting at 1) |
| Distribution of mined tokens | Only one mine owner wins | 33.34% goes to mine owner, the rest goes to network pools (see distribution table for detail) |
| Max Tokens | 21M Bitcoin | ~1B Conduit (1,006,632,960) |
| Time to mine all tokens | 2.5 decades | A century or more |
| Economic Activity | Transfer of value using bitcoin | Use, sale or transfer of cloud based Resources (assets, IP, goods and services) |
| Use | Transferring value | Running decentralized cloud for web 2 & 3 |
| Max transaction speed | 7 per second for network | Theoretically limited only by number of Nodes. 6 per second per Quad Security Modules (Network speed is based on how many Security Module verify a transaction and geo diversity, network speed scales linearly to Security Module count) |
| Economics based on | Only one winner | All active contributors win, plus the miner gets a bonus. |
| Economics Incentivize | Centralization of faster mines | Decentralization of all mines into the hands of people |
| Mine owners | Can be anyone | Only KYC’d individuals or pools of individuals |