HOUSTON--(BUSINESS WIRE)--Bitcoin Oil, or the Company, announces its plan to create a highly innovative Bitcoin fork and generate crypto-assets which the Company refers to as Bitcoin Oil, or OIL. In addition, Bitcoin Oil also announces its intentions to “go green” by utilizing the Power of Stake, or PoS, protocol to solve Bitcoin's serious energy consumption problems. “We have an opportunity as Bitcoin Oil to mitigate, for the first time, a significant concern that crypto currency users have regarding the large amount of electric energy consumed by crypto miners,” says Hannah Paddock, Bitcoin Oil's Chief Marketing Officer.
In today’s crypto ecosystem, Bitcoin and many other cryptocurrencies are experiencing a desperate need for electricity to meet the Proof of Work, or PoW, protocol. PoW is often described as “complicated puzzles” that miners must solve in order to earn the right to verify a block of transactions and claim the mining reward. Historically, cryptocurrencies were considered to be unregulated virtual currencies, using decentralized control as opposed to centralized currency and central banking systems, which means cryptocurrency networks could not be shut down.
Although that might have been true in the early days of cryptocurrency, the Company believes that Bitcoin can no longer be considered a truly decentralized cryptocurrency and government-independent, given that approximately 80% of Bitcoin’s mining pools (and its votes) are controlled by China – “Bitcoin’s most powerful adversary” as many say. The truth of today’s market is that abundantly cheap electricity supplies need to exist to continue PoW mining ventures. Overtime, mining has transitioned from ordinary activity carried out by many disparate miners to giant mining farms. As a result, governments have an increasing influence and at least indirect oversight over Bitcoin's largest miners.
In this context, government regulators are taking action to ensure that miners no longer receive preferential policies for electricity prices, taxes or land use - a highly political set of options with a lot of leverage for governments to significantly influence and control all major Bitcoin mining farms. To combat these legislative restrictions and become truly independent from political influence and government control, Bitcoin Oil's blockchain developers are “going green” by implementing the PoS protocol.
Ethereum will be the pioneer to this change as they begin to convert from PoW to a PoS algorithm, which is named Casper, as part of its Constantinople update. As the second largest crypto asset, this development is a huge endorsement for the PoS protocol. We believe the energy crisis is one of the first truly substantial trials facing the cryptocurrency world as it marches towards public prominence. Pitfalls and obstacles such as these are to be expected in such a nascent technology, but it’s the responsibility of the community at large to adapt to these tribulations. Bitcoin Oil will be following suit and “going green" with a conversion to an innovative PoS algorithm.
Alternative to PoW, PoS doesn’t require miners to solve complex mathematical puzzles in order to secure transactions. Instead, PoS uses economic incentives to secure network security. The concept is that using an economic game theory is a better and more efficient way to maintain network consensus. Implementing this new “green” system would mean network validators must deposit and lock up, or “stake”, coins to the network to act as de-facto collateral. These “staked coins” will be lost in the event a validator attempts to fake transactions or manipulates the system. In PoS, the amount of coins staked, along with the amount of time the coins have been staked to the network, help determine the likelihood a validator will be given the chance to secure the next block of transactions and thereby earning the validator additional coins as a reward for the validation work.
The divergence from completing mathematical computations in PoW to staking coins in PoS is the key factor in reducing the amount of energy required to operate and maintain a PoW-based network, such as Bitcoin, and PoS-based network such as Bitcoin Oil fork. This innovation eliminates the need for miners to use computing power to maintain the network, and instead relies on network participants to stake their coins in order to be recognized as network validators.
“If Ethereum’s successful algorithm change in Q1 2019 means anything, it should be a clear signal to the crypto community that PoW cannot persist in its current state. We believe PoS could avert Bitcoin from self-sabotage, which is one of the reasons why we believe Bitcoin Oil’s PoS-based technology will be superior to Bitcoin's current PoW model. Bitcoin Oil will remain vigilant in the improvement of Bitcoin and proactive with our solutions,” Hannah Paddock continued.
About Bitcoin Oil
Bitcoin Oil is a developer of innovative blockchain technology aimed at the improvement of Bitcoin. Bitcoin Oil is a developer of ledger technology aimed at the Bitcoin blockchain and the creator of Bitcoin Oil Coin, a new cryptocurrency based on the Bitcoin network with optimally improved ledger through the use of its “SSPSS” improvement strategy. The centerpiece of Bitcoin Oil and its “Optimally Improved Ledger” (OIL) will be the highly innovative “SSPSS” strategy focusing on the development and implementation of essential Bitcoin improvements in the fields of Stability, Sustainability, Privacy, Smart Sidechains, and Scalability, or “SSPSS”, including but not limited to key new Bitcoin blockchain features such as (i.) minimizing Bitcoin’s volatility (i.e. by connecting it with stable off-chain values), (ii.) drastically reducing Bitcoin’s insane energy consumption (i.e. by altering the consensus protocol to PoS), (iii.) implementing true privacy features (i.e. by enabling confidential transactions), (iv.) empowering Bitcoin based ICOs and STOs (e.g. by employing full smart contract functionalities), and last but not least (v.) developing cutting-edge scalability solutions (i.e. by complete integration of layer 2 protocols and offline transactions). To learn more about Bitcoin Oil, please review our next press releases as well as our forthcoming white paper, or if you are interested in investing with Bitcoin Oil, please contact us at email@example.com or call us at +1-8777-BITCOINOIL.
This press release shall not constitute an offer to sell or the solicitation of an offer to purchase any coin or right described herein, nor shall there be any sale of these coins or rights in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
This press release contains information about pending transactions, and there can be no assurance that any of these transactions will be completed in accordance with the terms described in this press release or at all.
This press release contains information about a possible hard fork of the Bitcoin network. Neither the OIL or such other crypto-asset generated through the hard fork nor the OIL or such other crypto-asset generated thereafter by any other method will be registered under the Securities Act of 1933, as amended, or the securities laws of any other jurisdiction and may not be offered, sold, pledged or transferred within the United States or such other jurisdiction without registration or an applicable exemption from such registration requirements. Even though Bitcoin Oil intends to deliver and distribute certain bonus OIL to the record holders of the Bitcoins then existing on the Bitcoin network, such delivery and distribution may be restricted or prohibited by laws of the jurisdiction in which such holders reside or such distribution or delivery may result in Bitcoin Oil being required to register such OIL under the Exchange Act of 1934, as amended, or the securities law of any other applicable jurisdiction. We are in the process of assessing regulatory requirements for the delivery and distribution of such bonus OIL to the then holders of the Bitcoins as part of the hard fork and there can be no assurance whether we would be able to make such delivery or distribution to any such holder in connection with the hard fork.
This press release contains statements that are forward looking (such as when Company describes what it “plans,” “believes,” “intends,” “seeks,” “aims,” or “anticipates” will occur, what “will,” “potentially,” or “could” happen, and other similar statements or the negative of such terms or statements), which may not be correct, even though Bitcoin Oil believes that they are reasonable at the time of this press release. Bitcoin Oil undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which the statement is made.