November 28, 2022 (GLOBE NEWSWIRE) — DUBAI, United Arab Emirates (GLOBE NEWSWIRE) — During the AIM Event, the largest alternative investment management summit, which took place in Dubai on November 22, 2022, JKL Group (www.jkl.group) Chief Executive Officer Lin Cheung participated in a panel discussion titled "Proof of Work vs. Proof of Stake" on the topic of energy.

Since the 15th of September, when the Ethereum Mainnet switched to Proof of Stake (PoS) mining algorithm, the cryptocurrency community has been engaged in a lively debate on the relevance of Bitcoin's native Proof of Work (PoW) algorithm. This debate has been going on since the Ethereum Mainnet switched to PoS mining algorithm. It was decided to bring together some of the most influential people in the Bitcoin mining sector, such as HIVE Blockchain, JKL Group, SATO Technologies, and Lake Parime, so that they could share their views into the current status of Proof of Work mining.

Panelists pointed out that the history of regulatory scrutiny of point-of-sale (PoS) blockchains in the United States goes back quite a ways. On September 19, the Chairman of the Securities and Exchange Commission, Gary Gensler, made a remark that seemed to imply that all Ethereum transactions are subject to the oversight of the United States government since almost half of all Ethereum nodes (46%) are hosted in the United States. In addition, the SEC is well recognized for its practice of identifying Proof-of-Stake (PoS) cryptocurrencies as being eligible for classification as securities due to their inability to satisfy the Howey Test. Participants on the panel were in agreement that as more rules are implemented in the digital assets industry, proof-of-work (PoW) blockchains would become increasingly important.

Another topic that was brought up during the panel was the function that Bitcoin mining plays as a load balancer for the electricity system. Power plants are engineered to operate on a specific frequency and with a narrow margin of error in their operation. The frequency will increase if the load on the electrical grid exceeds the demand for electricity, which may result in power plants being disconnected from the system. On the other hand, when there is a surge in power use that the grid is unable to meet, the frequency will fall. This might cause performance issues for the system.

"The production of energy and the use of energy are not steady. Lin Cheung made the observation that the storage of energy is not only prohibitively expensive but also inefficient on a large scale. The mining method known as Proof of Work possesses three characteristics that make it an effective load balancer for grids. To begin, PoW ensures that there is a consistent and ongoing demand for energy. Second, the process of mining Proof-of-Work may be started and stopped whenever the miner chooses. Third, the Proof-of-Work mining method is not location dependent.

About JKL Group

JKL Group was established in 2017 by a group of seasoned individuals who have backgrounds in traditional finance and knowledge in global financial markets, asset management, and quantitative investing methods. These areas of expertise were brought together to form the JKL Group team. The group's end-to-end digital asset experience, which includes quantitative trading, financing, over-the-counter services, and Bitcoin mining, gives it a competitive advantage in the marketplace.

You can learn more about the digital asset services and Bitcoin mining facilities that JKL Group provides by going to their website, which is located at www.jkl.group.

Regarding the AIM Summit

AIM Summit is The Leading Alternative Investment Management Summit, and it was established in 2015. Its purpose is to bring together investors and managers from the alternative investment industry (including hedge funds, private equity, venture capital, private debt, digital assets, and fintech), and to connect them with global industry leaders.