As you know, cryptocurrencies are digital money developed using cryptographic methods and based on blockchain technology. However, despite the fact that this type of asset presented exclusively in a virtual environment, cryptocurrencies are capable of causing damage to the environment. Due to the fact that Bitcoin uses more electricity per transaction than any other method known to mankind. The New York Times published an article last week that attempted to remind readers of the “incredible environmental costs” of mining cryptocurrency.
However, the situation is changing right now, blockchain is moving towards sustainable models in unison. Bitcoin promotes significant research into alternative energy sources; Ethereum is on the verge of transitioning to an energy efficient Proof-of-Stake consensus model; even many of Ripple’s maligned executives are in favor of more sustainable mechanisms.
All this is especially paid attention in space on Earth Day.
Moreover, the mining industry has developed a whole area called “eco-mining”.
Ecological methods of mining cryptocurrency
Ecomining distinguished by the use of renewable energy sources. These can be hydroelectric power plants or energy derived from the sun or wind. The crypto community doesn’t forget about the problem of excess heat. It is inevitably produced by mining equipment and can harm the ecosystem.
At the moment, the only way to reduce environmental damage from cryptocurrency mining is to use alternative electricity:
– wind energy (wind turbines);
– geothermal energy;
– solar energy (solar panels);
– hydropower (hydroelectric power plants).
Whenever possible, miners settle in regions where “green” methods of electricity production are available. These are areas with powerful rivers, enough sun for solar panels and wind energy. Mining has become a driving force in the development of hydropower in Sichuan province, which accounts for about 50% of the world’s bitcoin production. Hydromining considered as separate method of producing coins.
It is important for crypto mining participants to withstand high competition, therefore, it is becoming increasingly important to search for cheap and affordable energy sources.
“Green” mining is becoming an increasingly promising direction for the development of the blockchain industry.
Research group CoinShares estimates that about 74% of bitcoin mining is now coming from renewable energy sources. All over the world, you can already find many examples of the rational use of resources in mining. For example, the Myera Group found a way to utilize the excess heat generated by ASIC-miners: they use it to heat water, which they use to water plants in greenhouses and raise fish.
Eco-friendly mining has every chance of becoming a boon not only for the environment, but also for humanity as a whole, and there are a number of reasons for this. Utilization of surplus generated electricity and the development of “green” methods of production will reduce its cost. Migration of miners to countries that are not rich, but convenient for the production of cryptocurrencies, can have a positive effect on the economy.
As for ecology, practice has shown that there are all possibilities to make the mining of cryptocurrency completely environmentally friendly in the near future.