Will 2018 Usher in A Brand New Era For Green Cryptocurrency Mining?
It has been documented that popular and well-known cryptocurrencies such as Ethereum and Bitcoin combined utilise more energy than Jordan, Syria, and Iceland. Driving crypto-miners to use clean energy, green cryptocurrency mining lowers costs, uses clean energy and helps the planet besides generating profits.
While mining is when new crypto coins are created, virtual currencies lack centralised control. How it works is that miners use software to solve hashes or mathematical equations and verify transactions. But the mining process is advanced, energy intensive, so much so that processors work to the tune of millions worldwide and need to be cooled, further increasing power consumption in exponential terms.
This brings us to the million dollar question: Will 2018 usher in a new era in green cryptocurrency mining.
Strain on the Grids
Researchers from Leiden University calculated if the Bitcoin network expands at the present rate, it could very well draw energy to the tune of 14 GW of electricity by the year 2020. This is equivalent to the power generated by the entire country of Denmark currently! As the value of cryptocurrencies rises, so does the potential for expansion and transactions. This means more pressure on the grids.
In Venezuela, authorities discovered a warehouse of over 10 thousand mining computers, drawing in enough energy to power a complete town. Rather than wasting energy or escalating mining costs, 2018 promises to be the year for ushering in a new era in green cryptocurrency mining. Focusing on the environment is pushing companies as well as individuals to mine cryptocurrencies through renewable energy. Crypto mining that harnesses the power of mother nature is the way forward for the promotion of clean technology.
The Rise of Green Cryptocurrencies
Green cryptocurrencies are set to emerge triumphant in 2018. This will advance the advent of a novel mode of financing and powering the mining process, which is as transformational as share markets appeared in their days. This comes from a union of technologies like smart contracts and blockchains with in-depth environmental data and the advancement of growing corporate focus in raising funding for green investments. Cryptocurrencies will further incentivise leadership and innovation by embracing clean technologies. Cleaner purchases will be rewarded and most of the biggest policy issues can be tackled.
A new future awaits cryptocurrency mining as blockchains will emerge where supply chain data from multiple economic areas will be pooled and combined into an international interoperable dataset which can be trusted. The level of transparency and specificity makes it easy to emphasise environmental benefits and turn these into marketable commodities.
For example, this data can be added to smart contracts powered by Ethereum which offers a means for exchange, in terms of not only payments, but also for life-cycle linked implications of the production-based processes, too. Large corporates are also deploying blockchains to optimise and manage complex supply chains.
Green Crypto Mining is the Future
The value of green cryptocurrency is based on changing the nature of monetary transactions itself. This includes GENERcoin, a virtual currency which can be exchanged for a specific biofuel or traded in the form of the most popular cryptocurrency, bitcoins. Other examples range across EnergyCoin which works like a community currency or SolarCoins, bitcoins that support solar/renewable energy. The evolution of such green cryptocurrencies forms the core of blockchain-enabled international datasets of environment-linked life-cycle data and with this, energy groups and companies could easily gain the first mover advantage in 2018.
The past years have seen a massive hype around distributive ledger technologies. 2018 could very well be the year of a green finance revolution in the cryptocurrency world.
Disclaimer: “This article was contributed by the CEO of Blackmore Group, Phillip Nunn. Entrepreneur, financial expert, corporate evangelist, fintech and crypto trading authority, Phillip is an industry speaker and renowned thought leader on topics such as Fintech, Cryptocurrency and Blockchain technologies. Follow his blog at https://phillipnunn.co.uk/phillips-blog/ ”