Those who are familiar with the term Bitcoin Mining are also probably aware of its impacts on the environment, but not many of us are aware of the extent by which the mining activity harms our nature. Let’s discuss in brief.
According to a DailyMail (UK) study, the mining of bitcoins produces the same amount of energy as generated by all cars in the UK combined. If the mining activity keeps consuming energy at the same rate, soon it might push global temperature by 2033.
In other terms, mining of bitcoins and other popular altcoins is a high
electricity consuming activity. For an idea, the bitcoin mining activity
consumes as much energy as required to power an entire small country for a
year. This is a very high amount of electricity which comes at an equally
significant cost, both in terms of price and impact on the environment.
In just 10 years of its origin, the crypto mining has become one of the most unfriendly things to our environment. For instance, the mining of Bitcoins is performed through vast farms of computers which consume a lot of energy and release an equally huge amount of carbon dioxide, which is detrimental to our ecosystem.
Another research finds that the greenhouse emission rate of bitcoin is already touching that of a midsize country, which means the carbon emission rate is only rising with each new bitcoin miner.
So, what’s the solution?
Pieta, an eco-friendly cryptocurrency mining initiative, is reportedly working on an energy-efficient crypto mining solution. For one, Pieta is aiming to harness the cost-effective solar power and use it for the mining of bitcoins and other profitable cryptocurrencies. The team is presently working to develop a different kind of mining rig/platform which could be powered entirely by the green solar energy. Besides providing a cost-effective energy source to the miners, Pieta will also address the environment-fatal aspect of crypto mining by effectively replacing the fuel-based energy options with renewable solar energy.
Solar power is not only cheaper but also supportive
As of now, the primary energy sources used in cryptocurrency mining include coal, natural gas and oil. All these energy sources are non-renewable and therefore harmful to our environment as their consumption results in the release of harmful greenhouse gases. What pieta aims to do is it wants to create a different kind of mining mechanism where only renewable solar energy would be used for powering the mining activities. This will have two benefits – lower cost of mining and lower Co2 emission.
Moreover, Pieta will also develop its own solar farms (across Africa and other countries) in order to harness and provide cheap solar energy to everyone who is interested in using it for mining and other purposes. To summarise, the Co2 emission problem of crypto mining can only be solved by replacing traditional energy sources with more efficient and eco-friendly renewable energy sources such as solar. Pieta is doing its job in that direction. It is
Blockchain or cryptocurrency mining is the key underlying
process behind the entire blockchain ecosystem. A cryptocurrency runs on a
blockchain, which is a decentralized distributed database that is shared by all
the nodes or computing devices present in a network.
This database stores the ownership of each cryptocurrency and every transaction executed on the blockchain network. The process of blockchain mining refers to the verification of these transactions by the miners, who hold powerful computing devices for the same purpose. For each token to gain the true digital asset status, they must be verified by miners.
So, how does the blockchain mining exactly work? Let’s understand this. The process of cryptocurrency or blockchain mining requires two major activities-adding of transactions on the blockchain (securing and verifying) and the release of the new currency.
Miners in the blockchain network also require a computer and special program, which helps them to compete against peers in solving a complex mathematical problem. This also requires large computational resources.
Cryptographic hash functions are used by the miners at frequent intervals to find and solve a block using the transaction data. A hash function is nothing but a numeric value of fixed length that uniquely identifies data. Miners make multiple attempts to determine a hash value that is less than or equal to the target hash value and the one who gets it first is eligible for mining rewards.
As discussed, miners are also eligible to receive small
bounties or rewards for verifying transactions. For instance, currency 25
bitcoins are offered to a particular miner for discovering and verifying a
Additionally, the miners also receive some free from the users sending transactions. This fee is offered as an incentive to miners by the users to add their transactions on the block. The above-explained process seems easy to implement, but in reality, a lot of issues are faced by the mining community in verifying transactions.
Talking about issues in mining, it is evident that
increased popularity of cryptocurrencies has populated the miners in the P2P
network, which increases the mining difficulty and decline the rate of block
As a result of this network congestion, the average block creation time has reached approx 10 minutes in recent times, which makes it extremely difficult for miners to reap greater benefits. Numerous fintech firms are engaged in developing blockchain based crypto mining solutions that overcome issues like slow transaction speed, high processing fee, and network congestion in blockchain mining.
For instance, Pieta is one such blockchain project that uses the new X20 hashing algorithm to make the blockchain mining operations fast, secure, and scalable. The use of X20 hashing algorithm also simplifies the mining process, which will encourage more and more people with minimal technical apt to invest in crypto mining.
Pieta Ecosystem is also the world’s first solar-powered crypto mining ecosystem that uses X20 algorithm along with the low-cost ASIC hardware to bring down the energy consumption up to 50 per cent for miners. The new X2o algorithm also runs 20 round of hashes together to verify the transaction faster with a maximum block execution time of 20 seconds. Therefore, the lower operating costs and faster transaction speed makes Pieta tokens ready for mass adoption along with global use.
Crypto mining companies are drilling into the power resources in Manitoba and Quebec.
The term ‘mining’ has been long associated with finding the natural resources in the ores dug by men deep down the earth and extracting oil and other precious metals from there.
Blockchain however gave ‘mining’ a new definition with which separated it from earth and blended it with computer & technology.
Recently in Toronto Canada, a compound was seen full of newly shipped containers, approx. 48 were seen. While the compound is dedicated for such containers and there are many more like them, the only thing that made these 48 different was the material they contained.
Unlike the other containers which were crammed with regular goods, these were loaded with high-powered computer, which are known as “rigs”. Machines they use to mine cryptocurrencies.
Spots like this are becoming very common to see in many cities in Canada including Quebec, Manitoba and B.C. , as the country offers cheap supply of green electricity with an innate cold environment, digital currency miners are making their bases in Canada.
The historical hike in bitcoin’s price drew everyone’s attention and stirred a conundrum with its frequent fluctuations reaching an all-time high to $20,000 and dropping to $7,000, and bouncing back to $11,000 within a period of two-week.
Shrugging off all the speculations and risks posed by regulators, investors have been keener about crypto mining and the location has been primed already for setting up large-scale operations.
Many companies are setting up their rigs on big scale while keeping their location secret. For instance, DMG Blockchain Solutions is all set to onset the operations and using the computers confirm the transactions and for mining both.
Sheldon Bennett, the CEO of DMG Blockchain Solutions says,” we consider them as credit cards which link the bank and the person who makes the transaction.
Companies like DMG Blockchain Solutions get paid to act as an intermediary for bitcoin transactions, confirming the recipients and payers of it.
Within the premises of the company which is around 27,000 square foot, the biggest patch of area is covered by massive coolers that try to minimize the heat generated by the pile of computers deployed for mining. These machines devour a great amount of power for confirming the transactions.
It was remarked by some analysts that crypto miners across the globe consumed more power than the entire Ireland last year.
The mining operations took off initially in China, but that’s changing now after the recent crackdown on cryptocurrency by the Chinese government.
Miners are now shifting to other countries including Canada. Targeted cities are Quebec and Manitoba because of the limitless cheap and clean hydro power supply.
According to the sources in Manitoba Hydro, more than 100 groups swarmed in to exploit the utility in these cities. Without revealing the names of the miners, the sources indicated a large gathering of groups since Christmas.
A lot of people are trying to gather information about the resources and possibilities of setting their mining rigs over here.
Sources also said that, “number of active digital currency miners operating in the province has reached 6 now”. The total consumption of energy by these miners are equal to what 18,000 households do.
There are several requests from foreign digital currency miners interested in opening up setups in the province which Hydro-Quebec address. The organization admitted that their campaign to attract data centers last year incited many bitcoin miners too.
Another aspiring cryptocurrency miner plans to utilize the natural gas which the company produces and deals in. The CEO of the company said, “crypto mining uses a lot of electricity and that could also be generated with natural gas”.
Being a natural gas provider we have plenty of it and make a good use of the gas for cryptocurrency mining.
The company’s vision is to power numerous mining operations shifting from China and currently in talks to achieve that goal. To start with, they are planning to setup 170 mining rigs.
China has already started to truncate the number of crypto miners as they are consuming power more than the country can provide. Baffled by the decision, miners are anxious to relocate to Canada for its cheap electricity and cooler climate.
The company has received 6 applications from Chinese companies requesting to host their mining operations, a few American firms have also contacted with the same intent.
The company also expressed a disregarding opinion from its members when it propounded the concept of hosting bitcoin mines, but confirms that they all realized the potential of this project later and agreed.
Miner Edge is all set to build the biggest cryptocurrency mining setup using the cheap green electricity provided by Canada. The first miner is going to be setup in Manitoba and it has already launched its ICO which is making a buzz in the cryptosphere right now. Be a part of this biggest crypto mining project and earn great profits.