Five minutes of steampunk: the Netherlands imagined Bitcoin in 100 years
Dutch National Bank (DNB) presented the results of the cryptocurrency experiment. Researchers have modeled Bitcoin development up to 2140 when mining of last coins will be completed.
According to Ron Berdsen, one of DNB top managers, the bank has involved Bitcoin software in order to understand the blockchain potential better. The working team tried to recreate the ecosystem of the first two months of Bitcoin existing: using five computers, participants mined the first DNBcoin block with the following generation of thousands of other blocks. Team members were sending digital coins to each other investigating every aspect, in particular, transaction fees. New blocks were appearing once per three minutes (and Bitcoin – once per around ten minutes).
Curiosity of the team has focused on Bitcoin system future: what will happen in 2140 when mining stops on 21 million BTC. To understand this fact one had to mine all DNBcoins: they were generated by one PC and then the network has been opened for everyone. To reduce energy consumption the first reward for found blocks was 1 billion coins.
According to Berndsen, one obtained the opportunity to generate three billion coins per a half of minute. When all DNBcoins were generated, one still could mine and add blocks. However, a miner didn’t receive rewards but collected transaction fees for finding the next block.
DNB manager has determined the main block chain advantages: seamless bank payments and monetary policy control.
But Berndsen sees barriers for national regulators to accept blockchain, such as operating incompatibility, development fragmentation and personal interest of financial institutions.