According to a recent report, Bitcoin revealed the true cost of mining. According to the report, the energy spent on Bitcoin mining is more than the energy it consumes in most African countries. One of the main reasons for this is that Bitcoin mining is very costly. Since the Bitcoin consensus is based on old business evidence, it is very costly because of the large amount of electricity it consumes and the equipment required to maintain this mining.

Why does Bitcoin mining use so much energy?

Bitcoin is a blockchain-based system of collective work of decentralized nodes. Some of these nodes are miners and their responsibility is to add new blocks to the blockchain. To do so, miners must try to guess a pseudo-random number (known as nonce). When this number is combined with the information from the block and passes through a hash function, it must produce a result that matches the conditions specified (for example, a hash starting with four zeros). When a matching result is found, the other nodes verify the result and the miner is rewarded with the node block award.

Graph no. 1

Hence we have an increasing number of miners solving an increasingly difficult puzzle to confirm a comparative handful of transactions. The result is considerable waste. The power being consumed by miners to participate in Bitcoin mining is becoming undeniably substantial, especially when considered cumulatively.

Therefore, most of the newly developed projects have different consensus algorithms such as Proof of Stake or Proof of Formulation. Thanks to the newly developed consensus algorithms, we have minimized energy consumption. In addition, these algorithms, which do not require large investments, are more secure and more energy-efficient compared to the old consensus algorithm.

As I tried to explain above, Bitcoin mining or other cryptocurrencies minings are a very harmful business of classic mining. Because, considering its negative impact on the environment and its cost to you, it is clear that it is by no means profitable.

Bitcoin mining is a very old and outdated type of mining.

This is exactly why we need to focus on mining algorithms that consume much less energy and are more profitable.

PoF(Proof-of-Formulation): FLETA’s Own Consensus Algorithm

With Fleta’s Proof of Formulation consensus, you don’t need to put a fortune to mining. With Fleta, you can do different mining on the internet using the cloud system and node. Thanks to this mining algorithm, it is possible to make a profitable investment using only a simple computer without the need for powerful processors and graphics cards.

How does it work?

A Formulator is a mining node of FLETA. All Formulators participate in mining once per Phase according to a designated rank. Once the whole Formulators have participated in the mining, a new phase starts. That is, Formulator that first created a block at the Phase-1 can be the first or the last at the Phase-2. The rank is set randomly by changing each Formulator’s hash value into a number through a certain mathematical formula. There is no rule in the setting of the rank and the formula changes in every phase, so it is actually impossible to predict the rank.

It may seem inefficient that all Formulators participate in the mining. However, FLETA’s block time is only 0.5 seconds, and each mining creates 8 blocks. So, it takes only four seconds per mining. Pretend there are 1,000 Formulators. If these 1,000 Formulators participate in mining, it takes about 4,000 seconds or 66 minutes — 1,000 Formulators x 4 seconds (8 blocks x 0.5 seconds). Moreover, in the FLETA’s mining ecosystem, blocks are instantly confirmed through Observer Nodes. Among five Observer Nodes, three of them should validate the blocks immediately after generating the blocks, which enables the blocks to be disseminated quickly.

However, there are 2 different formulators in the system. General and Hyper. General, it is divided into 3 different groups — Alpha, Beta, and Omega.

Hyper is also divided into two different groups as Validator and Delegator.

You can be one of these 5 different formulas in the system. But they all have different requirements, rewards, and commissions. You can see the details in the chart below.

Graph no. 2

In this way, Fleta wants to offer different possibilities for all cryptocurrency enthusiasts by developing different algorithms for everyone.

Important note: If you are in the system as a General Formulator, you must pay some amount to the servers provided by Fleta. These commission figures are indicated in the graph. However, if you pay these commissions with Fleta tokens, you should get a 20% discount.

Being a General Formulator

Graph no. 3

If you want to become a General Formulator in the system, you should first visit FLETA’s Formulator Portal. You must have 200,000 FLETA tokens. The graphic above describes the requirements of General Formulator in detail.

What exactly is the difference between Alpha, Beta and Omega Formulators?

As we mentioned above, General Formulators can be categorized into three levels by each category’s performances. At first, you can start with Alpha Formulator, a basic level Formulator created after locking up 200,000 FLETA tokens.

After you lock your Fleta tokens in the system, you will earn monthly income. But first, you will enter the system as Alpha Formulator. At the end of one month, you will be Beta and at the end of the next month, you will be Omega Formulator.

The difference is that Beta’s prize pool is 1.15 times higher than Alpha. Omega’s prize pool is 1.3 times more than Beta. So the more you remain a validator in the system, the more ranks and rewards you will earn will increase.

Monthly commissions of Alpha, Beta and Omega are respectively $ 120, $ 350 and $ 500. But you should remember that you will get a 20% discount when you pay your commissions with FLETA tokens instead of the USD rate.

To sum up, you may lock up the same amount of FLETA tokens, but Sigma and Omega Formulators have greater efficiency at a lower cost according to their levels. You can upgrade your Formulators on the FLETA Formulator Portal.

Being a Hyper Formulator

The main difference between General Formulator and Hyper Formulator is that when General uses Fleta’s servers, Hyper uses his/her own server.

Unlike General Formulators, Hyper Formulators should lock 5,000,000 FLETA tokens into the system as shown in Graph 2. Also, the Hyper Formulators should be set up and run on at least 8-core CPU (the mainnet level).

FLETA invites Validators through its screening process. Let’s say an Alpha Formulator presents 1 mining efficiency, one Hyper Formulator projects 1.3 higher mining efficiencies which are as same as one Omega Formulator.

The following chart shows Fleta’s Hyper Formulators.

Let’s briefly familiarize yourself with the 6 Hyper Formulators above:

1) Hashtower: Hashtower is a validator brand of GDAC, a Korean cryptocurrency exchange. As one of the leading validator of Cosmos(ATOM).

2) Cosmostation: Cosmostation is one of the top 10 Validators of Cosmos(ATOM). It is also a validator of Tendermint-based blockchains such as IRISnet and Terra.

3) Bitsonic: Bitsonic is a cryptocurrency exchange founded by Skoop Media, a leading mobile application company in Korea.

4) Like Lion: Like Lion is an educational organization specialized in computer programming, led by a.k.a ‘genius developer’ Du Hee Lee.

5) Forour: FOROUR is committed to building a bridge between blockchain, VR and/or AI startups and corporates to foster digital innovations in the era of Fourth Industrial Revolutions

6) WBL: WBL is an education lab specialized in cryptocurrency investment. Aiming to create a value-driven crypto investment ecosystem, it has offered regular classes and education programs to the public.

Anyone who wants to be within the limits Fleta shows and draws can be Hyper Formulator.

However, if you do not have the necessary investment to do so, you can join the system as Delegators of Hyper Formulators.

The fact that the very powerful companies mentioned briefly above are the Formulators for FLETA shows how much they trust and support Fleta.

In addition, Fleta’s business partners are not limited to these companies. In the chart below, you can also see other partners of Fleta that do not have Formulators but collaborate with different types.