(via ZEXPR) Recently, two renowned public cryptocurrency companies, London’s Agro Block-chain and Canada’s DMG Block-chain initiated the Green Bitcoin (GBIT) mining pool approach for clean energy operations for the first time in the history of bitcoin. These companies have announced to combine their computational hash power to create a Terra-pool and use hydroelectricity as a clean energy source. As global warming is one of the burning issues thus, GBIT mining can be a good step in reducing it.
Bitcoin’s network is a virtual, decentralized ledger, an alternative to the banking system which means the system can operate and transfer the funds from one account to the other, without any central authority. It encourages its users to utilize their computational capacities to participate in updating the ledger of bitcoin transactions, known as the blockchain.
For that to work, fast tech computers are used with high hash rates to guess the numbers that solve the equation generated by the system. Hash rate is the computer’s ability to guessing the combinations to unlock the block. More computing power means faster unblocking and earning bitcoins, also known as mining.
The Investment Center broker Dennis Bierman explains how the future of Bitcoin mining can accommodate operations that are more energy-friendly while also taking into account the implications that exist otherwise.
A recent report of American bank mentioned the enormous environmental hazards of the bitcoin network as the energy consumption has grown over 200% in the last 2 years. The Cambridge researchers deliberate the energy consumption of Bitcoins to be 121.26 tera-watt-hours per annum According to an estimate, bitcoin’s energy consumption is more than Argentina’s electricity supply. To address the electricity shortage problem as well as environmental hazards, terra pool purposed a climate-conscious way.
The “terra pool” is a bitcoin mining pool, running on renewable energy sources. This latest terra-pool approach of Agro and DMG’s joint-venture will certainly increase their hash power for mining the new bitcoins from the system.
Not only that, they have announced to utilize their electricity need from hydroelectricity plant, the terra-pool network. This step provides a sustainable platform for cryptocurrency mining, not at the expense of climate change.
The CEO of Agro blockchain, Peter Wall said that the top priority in this partnership with DMG is enabling the GIBT mining pool to protect our planet.
Establishing A Suitable Location
To shift bitcoin networking to the cheapest and safest forms of energy, location is everything. For assuring the transactions “green”, locate the terra pool near the renewable energy resource like hydroelectric dams from where it can smartly produce clean energy.
China has built such hydroelectric dams already in Sichuan that produce more energy than local Bitcoin miners. The combined output of these dams is 190TWh. Such huge electricity output can cut off 12.2M tons of coal requirement and reduce the carbon dioxide emission up to 30.5Mt in a year. In addition to clean electricity generation, dams can avoid flooding and enable to use of 15% non-fossil fuels.
Another advantage of bitcoins being decentralized, relocating them to the nearest electricity source would be easier. During the seasonal migration patterns, it would be easier to shift the bitcoins mining network to a suitable station.
The Investment Center broker Dennis Bierman explains how in this regard, bitcoins are considered to be a global asset with utility. Also, much like China, if other Western mining countries also shift the mining trend towards GBIT, the bitcoin networks will become less polluting.
According to the latest data published on electricity consumption in bitcoin mining, a total of 0.16 % of the world’s electricity is being consumed and by the mid of the year 2021, the electricity required for this mining process will be more than the whole US’s.
As a green-alternative, the Colyer and Foundry proposed an “immersion mining” technology in which the machines will be submerged in a coolant instead of installing the air cooling systems in computers.
In the annual report of 2020, the Bank of America mentioned the use of quantum computers in the next 20 years will greatly reduce the energy usage for crypto-assets like bitcoins and help them to emerge with reduced carbon footprints. The environmental risks associated with bitcoin mining are alarming and to overcome that, quantum computers could be our latest choice.
Bierman quips on how quantum computers work on the principles of quantum physics for data storage and computational working. Their use in GBIT mining can outperform today’s best supercomputers. Theoretically, a 4000 qubit quantum computer can crack the encryption of bitcoins in seconds and the latest technology enable us to design 54 qubit computers.
The Elliptical Curve Digital Signature Algorithm (ECDSA) of today’s bitcoin hash block is standardized at SHA-256. With a quantum computer, the blockchain process can be reversed making any Bitcoin wallet accessible. Working with such technology could be dangerous and threatening for cryptocurrency. For security, the National Institute for Standards and Technology (NIST) has created a “quantum-resistant blockchain”, which remains resilient even to high tech quantum computers.
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