The developers of a new token that uses bitcoin principles on the Ethereum blockchain say that users can now mine coins without using any equipment required.
Bitcoinereum, which is an ERC-20 token created last year, is called by its developers as the “first bitcoin minable ERC-20 token on the Ethereum blockchain.” Its mining system copies the same mining mechanism on the Ethereum blockchain that is used for creating bitcoin. However, instead of using any mining equipment, the users are “just required to call one function of the token’s smart contract.”
According to the team of developers, the only thing that users need to have is a few ETH in their wallets which will be only used to pay for the Ethereum network fees.
“Anyone can mine bitcoinereum by calling the Mine() function of the smart contract. You just need to interact with the smart contract by using any Ethereum wallet like MyEtherWallet.com or geth,” they said.
“The token incorporates a similar mining mechanism to bitcoin, including the mining reward halving every 4 years. The whole process is quite transparent and we invite anyone interested to review the bitcoinereum source code.”
The website for the token says that only 21,000,000 coins can be mined and the initial supply was zero coins, as there was no pre-mine. The team claims that it could take around 132 years to mine every single bitcoinereum.
The developers put a cap on the number of bitcoinereum to be mined every 10 minutes—50 coins, which is the same mining reward as bitcoin in 2008. This reward will continue until 2021, when it will be cut down to 25, the team says.
On the other hand, bitcoinereum mechanism allows not only one miner to receive the full reward every 10 minutes. The reward is divided by 50 calls instead, and whoever makes the first 50 calls gets the coins during that period.
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These rules are created to sidestep a mining monopoly and get a better distribution of bitcoinereum across the community.
The concept of smart contract mining (also known as public mining) means letting anyone mine a token by calling a smart contract function, the team said. This concept was firstly introduced by Artemine, which is a token that doesn’t require any customary equipment for mining.
It was announced as an updated version of ‘minereum.’ At launch time in 2017, Artemine’s team was able to build a major platform that was focused on public mining and self-mining principles.
Artemine coins can be mined in two ways: by calling a contract function or by owning a Genesis Address. Another major update that was introduced was the possibility of decentralized trading of Genesis Addresses, “making them a sort of crypto collectable,” the team said.
The self-mining process in Genesis is automated and based on a formula. Additionally, users can move their Genesis Addresses and trade them on the open market—directly to the purchaser without any third-party participation.
There can be sales through smart contracts in a peer-to-peer environment. The project’s team expects all Artemine Genesis Addresses to be mined in the coming 40 to 60 years.