How Cryptocurrency Mining Can Affect the Future of Green Energy using SolarBlox.
It would seem illogical at first glance, but any peak in consumption has always given rise to an update of the actual means of production
Global climate change is a topic that has been heard about even in the most remote places on our planet. Today, this topical issue is being discussed in the context of cryptocurrency mining. On one side of the debate are proponents who believe that cryptocurrencies can solve the world's problems. On the other hand, those who believe that miners use a lot of "dirty" energy from coal production in China and natural gas in New York, thereby leaving a devastating footprint on the environment.
The discourse got even more exciting after I came across the BCEI report published by Square. The authors of the work put forward the idea that the huge demand for electricity for mining, on the contrary, will accelerate the global energy transition to renewable energy sources. I analyzed the main theses of this report..
Bitcoin’s staggering power consumption is central to the operation of its blockchain technology. New bitcoins are “mined” by solving complex mathematical puzzles, which is called “proof of work”. This ensures the decentralization of the blockchain network. But it also requires massive computing power as miners try to solve these problems first. Recognizing the impact of an energy-intensive currency on the environment, more than 200 companies and individuals launched the Crypto Climate Accord last year, committing to zero-efficiency operations by 2030. mainly through the transition to renewable energy sources. But not everyone considers "green" mining a win-win solution for cleaning up "dirty" currency. Bitcoin economist and expert Alex de Vries says spending precious renewable energy on “random computing” rather than industries that provide jobs and other economic benefits to the national economy can be problematic. In fact, until recently, renewables Energies have already played an important role in cryptocurrency mining as they are often the cheapest source of energy. A study by cryptocurrency analytics firm CoinShares found that in 2019, at least 74% of global bitcoin energy consumption came from renewable sources, mostly cheap Chinese hydropower.
This approach draws miners from all over the world into a virtual race that requires solving a mathematical problem. The winner gets the opportunity to update the blockchain by adding a block with the latest confirmed transactions. Tokens are a reward for the work done. PoW leaves a significant carbon footprint as most electricity is still produced from fossil fuels (including oil, natural gas and coal).
An alternative approach is Proof-of-Stake (PoS), using a network of "validators" who provide a portion of their digital assets in exchange for the ability to validate new transactions and enable new blocks. PoS rewards validators who contribute the most over the long term.
When it comes to the environment, the Proof-of-Stake protocol leaves a much smaller carbon footprint.
At one time, changes in the legislation that regulates "green" energy, led to almost an investment boom in this industry.
It would seem that the case of renewable energy sources (RES) should have become the most successful among all the energy solutions of the state, but in a short time it turned into a failure.
At the start, the state did not skimp on bonuses
In 2009, the Verkhovna Rada established special ("green") tariffs for electricity generated from RES.
To further encourage foreign investors, the state tied these tariffs to the euro and undertook to buy all 100% of such energy through them until 2030.
At the same time, in order not to overburden the budget and providing for a gradual reduction in the cost of generating equipment, a gradual reduction of the "green" tariff was planned at the legislative level.
Investors are really interested in this case.
Oddly enough, domestic players were the first to enter the renewed energy sector
Blockchain is a transactional data storage architecture based on a proof validation algorithm to
synchronize and store data from individuals to the global decentralized network. This technology
has paved the way for creating cryptocurrencies and has opened up an infinite economic
potential, the most popular being Bitcoin and Ethereum. Both utilized the blockchain-based
technology with a different approach to how it proof and validate transactions; one is called Proof
of Work (PoW) and the other Proof of Stake (PoS).
Getting a Block on a chain.
A block on the chain will contain a specific directory called a “Hash”, a unique code to identify
its placement on the chain. Information is to be stored in multiple places while holding a class of
its own on the chain of blocks, creating the most secure distributed ledger in the world. PoW uses
a physical computation machine to validate and place each transaction on a specific chain; this
process is also known as “Crypto Mining”. Miners are rewarded with crypto coins as revenue for
configuring the mathematical cryptographic placement of a new block to the chain.
Similar to PoW’s PoS uses Stakes, a network authenticator node as a middle-man who stakes to
validate the transaction without using a physical computation machine. The reward is then given
to the staker of the node. The different approaches create a spectrum of benefits for both to be
selected and used for various projects.
The most popular will have to be the creation of “Bitcoin” in January of 2009 by the renowned
Satoshi Nakamoto, which uses PoW as a core design to its success on the global scale. Bitcoin is
used as a token to represent value as money was able to transfer and stored from one person to
another person without a bank. This decentralization has changed the idea of money ever since.
“Bitcoin constituted 66% of the total market capitalization of cryptocurrencies in 2020.”1
Crypto Mining Operations.
Crypto Mining is an operation to support the global adoption of the crypto economy. As more
miners join the network to validate and authenticate, the faster and more fluid the crypto
economy becomes. It has become one of the most significant infrastructure investments
developments. One can invest in various types of computation machines to mind the chain. The
most commonly used today will be the ASIC Miner. Application-Specific Integrated Circuit
machine that is optimized to compute a specific cryptography script. These machines use
electricity to operate. The power efficiency and the speed advancement have led them to be the
backbone of Blockchain today.
Revenue stream for Crypto Mining operation.
Crypto Miners serve as validatory authorities who authenticate data on the network and earn
cryptocurrency as rewards in return. The revenue from rewards is then offset by the overhead
cost and mostly from the electricity that is used to run the ASIC’s machines. These ASICs are
made to optimize electrical use to maximize the reward gain for their work.
Clean Energy Future.
The growth in crypto economy adoption has led to the shift in global energy usage from printing,
storing and transporting paper money into electrical powered script leisure booking networks.
To secure the advancement of the monetary finance future, we as operators are obligated to pave
a better way to support a new world of cleaner energy.
In this support for a cleaner future, governments and countries have joined to create many
incentives to migrate energy usage to a more sterile solution. A carbon credit is one of the major
milestones in creating an incentive for the renewable energy producer and user and incentivizing
the old and conventional high carbon emission power run operation. This will give an advantage
to sustainable investment in clean energy. The most common and scalable adoption will be the
use of Solar panels. The technology in producing high-efficiency panels have evolved the level of
mass adoption alongside its ecosystem of technical expertise. The solar efficiency can be
calculated via satellite imaging and projected to optimize infrastructure planning.
SolarBlox
Crypto Mining using Solar energy as substitute energy sources. Mining generates revenue, Solar
energy subsidizes cost and ensures offgrid power supply at fixed investment cost.
According to Elon Musk's expectation on August 5, 2021 (Renewables Now) - Tesla Inc
(NASDAQ: TSLA) needs to confirm that the percentage of renewable energy consumption in
Bitcoin mining is at or above 50% before it can resume accepting payments with the
cryptocurrency, according to CEO Elon Musk.
"Our mission is to reduce electricity bills at least 50%," said Sam Shin founder of SolarBlox and
founder of SolarXell. Sam Shin founded SolarXell to be the leading Solar infrastructure facilitator.
We are providing migration and renewable energy subsidization to local and international
businesses across the ASEAN. Therefore in this new endeavor, having crypto mining that uses
renewable energy for 50% is well achievable.
#cryptosolar #cryptomining #cryptosolarmining #solarmining #cleanmining #fentech
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