Technologies of "green" cryptocurrency mining: SolarBlox
Reducing the negative impact of cryptocurrency mining on the environment is one of the main crypto trends that will be relevant in the next few years. This is indicated by the fact that more and more mining eco-companies are entering the market that use renewable energy sources and also integrate technical solutions that significantly reduce energy costs. We discussed the main directions of the development of "green" mining of cryptocurrencies and the prospects of this sector of the crypto industry.
How much energy does the Bitcoin network consume?
Excess energy consumption and the use of "dirty" energy (that is, obtained from the burning of fossil fuels) when mining Bitcoin are the most popular arguments among critics of the first cryptocurrency. Especially after Tesla refused to accept bitcoins as payment for cars last spring — when CEO Elon Musk accused bitcoin mining of polluting the environment. Earlier, we explained in detail how unfounded such criticism is.
But how much electricity does the Bitcoin network consume? It is impossible to give an exact answer to this question today — for this, you will need to collect data on all countries where miners mine bitcoins. And given the fact that in many regions this industry is not regulated in any way, there are no statistics on electricity consumption.
According to estimates by the Cambridge Center for Alternative Finance (CCAF), the network of the first cryptocurrency consumes between 49.31 TWh and 291.58 TWh. On average, this indicator is 125.13 TWh. This is about 0.56% of all electricity consumption in the world according to statistics for 2019. For comparison: up to 10% of the world's electricity goes to the Internet, and YouTube and Netflix use 1%.
It is noteworthy that now Bitcoin consumes less energy than a year ago - then about 150 TWh was spent on maintaining the network’s performance. However, the current 125.13 TWh is also a lot. For example, this is more than the annual energy consumption of such countries as Norway and Ukraine.
Bitcoin’s staggering power consumption is key to the operation of its blockchain technology. New bitcoins are "mined" by solving complex mathematical puzzles called "proof of work". This ensures the decentralization of the blockchain network. But it also requires a lot of computing power as miners try to solve these problems first. Recognizing the environmental impact of the energy-intensive currency, over 200 companies and individuals launched the Crypto Climate Accord last year, pledging to be net-zero by 2030, largely through a transition to renewable energy. But not everyone considers "green" mining to be a win-win solution for cleaning "dirty" currency. Bitcoin economist and expert Alex de Vries says that spending precious renewable energy on "random computing" rather than on industries that provide jobs and other economic benefits to the national economy can be problematic. In fact, until recently, renewable energy sources have already played an important role in cryptocurrency mining, as they are often the cheapest source of energy. A study by cryptocurrency analytics company CoinShares found that in 2019, at least 74% of global bitcoin energy consumption came from renewable sources, mostly cheap Chinese hydropower.
This approach involves miners from all over the world in a virtual race that requires solving a mathematical problem. The winner gets the opportunity to update the blockchain by adding a block with the most recent confirmed transactions. Tokens are a reward for work done. PoW leaves a significant carbon footprint because most electricity is still generated from fossil fuels (including oil, natural gas and coal).
An alternative approach is Proof-of-Stake (PoS), which uses a network of "validators" who provide a portion of their digital assets in exchange for the ability to verify new transactions and activate new blocks. PoS rewards validators who contribute the most over a long period of time.
In terms of the environment, the Proof-of-Stake protocol leaves a much smaller carbon footprint.
At one time, changes in the legislation regulating "green" energy led to almost an investment boom in this field.
It would seem that the case with renewable energy sources (RES) was supposed to be the most successful of all energy decisions of the state, but in a short time it turned into a failure.
At the start, the state did not skimp on prizes
In 2009, the Verkhovna Rada established special ("green") tariffs for electricity produced from RES.
To further encourage foreign investors, the state pegged these tariffs to the euro and pledged to purchase 100% of such energy through them by 2030.
At the same time, in order not to overload the budget and foresee a gradual decrease in the price of generating equipment, a gradual reduction of the "green" tariff was planned at the legislative level.
Investors are really interested in this business.
Surprisingly, domestic players were the first to enter the renewed energy sector
Blockchain is a transactional data storage architecture based on a proof-of-concept algorithm
synchronize and store the data of individuals in a global decentralized network. This technology
paved the way for the creation of cryptocurrencies and opened an infinite economy
potential, the most popular of which are Bitcoin and Ethereum. Both used blockchain
technology with a different approach to how it validates and validates transactions; one is called Evidence
of work (PoW) and other proof of stake (PoS).
Obtaining a block on a chain.
A block in the chain will contain a specific directory called "Hash", a unique code for identification
its placement on the circuit. Information should be stored in several places during the course of the class
own on the block chain, creating the most secure distributed ledger in the world. PoW uses
a physical computing machine to verify and place each transaction on a particular chain; it
the process is also known as "cryptomining". Miners are rewarded with cryptocurrency coins as income for
setting the mathematical cryptographic placement of a new block in the chain.
Similar to PoW, PoS uses Stakes, a network authentication node as an intermediary that stakes on
confirm a transaction without using a physical computer. Then a reward is given
to the node raker. Different approaches create a number of advantages for both
selected and used for various projects.
The most popular will be the creation of "Bitcoin" in January 2009 by the famous
Satoshi Nakamoto, who uses PoW as a core construct for his success on a global scale. Bitcoin is
was used as a sign to represent value because money could be transferred and held from one person to
another person without a bank. Since then, this decentralization has changed the way we think about money.
“In 2020, Bitcoin accounted for 66% of the total market capitalization of cryptocurrencies.”1
Cryptocurrency mining operations.
Crypto Mining is an operation aimed at supporting the global adoption of the crypto-economy. How more
miners join the network for verification and authentication, the faster and smoother the cryptocurrency
the economy becomes It became one of the most significant investments in infrastructure
developments. One can invest in different types of computing machines to understand the chain. The
the most commonly used today would be the ASIC Miner. Special integrated circuit
a machine that is optimized to compute a specific cryptography scenario. These machines are used
electricity to work. Energy efficiency and increased speed made them the best
the basis of today's blockchain.
Crypto Mining Operation Income Stream.
Cryptominers serve as verifiers that verify the authenticity of data on the network and earn money
cryptocurrency as a reward. Then the income from the reward is offset by overhead costs
cost and mainly from the electricity used to run the ASIC machines. This is an ASIC
made to optimize the use of electricity to maximize the reward for their work.
The future of clean energy.
The growing adoption of the crypto-economy has led to a change in global energy consumption from printing,
storage and transportation of paper money to leisure reservation networks with electric power.
In order to ensure the development of future monetary financing, we as operators are obliged to pave
the best way to support a new world of cleaner energy.
In this support for a cleaner future, governments and countries have come together to create many
incentives to shift energy consumption to a more sterile solution. Carbon credit is one of the main ones
milestones in creating incentives for producers and users of renewable energy and incentives
an old and common engine with high carbon emissions. This will give an advantage
to sustainable investments in clean energy. The most common and scalable implementation will be
using solar panels. The production technology of highly efficient panels has reached a new level
mass adoption along with an ecosystem of technical expertise. Solar efficiency can be
calculated using satellite imagery and designed to optimize infrastructure planning.
SolarBlox
Crypto Mining using solar energy as alternative energy sources. Mining generates revenue, Solar
energy subsidizes costs and provides off-grid electricity at a fixed investment cost.
According to Elon Musk's expectations, 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 help
cryptocurrency, according to CEO Elon Musk.
"Our mission is to reduce energy bills by at least 50%," said Sam Sheen, founder of SolarBlox and
founder of SolarXell. Sam Sheen founded SolarXell to become a leading enabler of solar infrastructure.
We provide migration and renewable energy subsidies for local and international
enterprises in ASEAN. Therefore, in this new venture, cryptocurrency mining uses
50% renewable energy is quite achievable.
#cryptosolar #cryptomining #cryptosolarmining #solarmining #cleanmining #fentech
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