The Solarminer is IOEN and Redgrid’s renewable energy solution to cryptocurrency mining’s energy problem. Los Angeles-based property developer Kinfolk Properties have teamed up with IOEN and Redgrid to integrate sustainable bitcoin mining and clean energy infrastructure into their flagship multi-dwelling residential development in Venice Beach. Stay tuned as we update you on the Solarminer campaign and the world around solar energy.
A Mining Background
The USA’s Empire State, New York, recently passed a two-year freeze on any new cryptocurrency mining projects that use carbon-based fuel. Mining cryptocurrency is an energy-intensive process. Not all types of mining, but most mining operations around the world are not good for the environment. Bitcoin mining itself draws the same amount of carbon-based electricity in a year as the entire country of Switzerland. The energy used to mine Bitcoin in Iceland has now surpassed that used to power residential homes for a year. Many other governments have seized and legislated against Bitcoin mining operations due to the extreme demand placed upon their energy infrastructure. The scale of the environmental impact that crypto mining now produces makes this otherwise invaluable tool for wealth creation less viable every day. Here’s why!
Proof of Work
You know, we all know what cryptocurrency is from a distance. But it’s still a mystery to many as to the who, what and especially the ‘how’ of cryptocurrency. Specifically, why is Bitcoin mining so energy-intensive? To remain as technically decentralized and transparent as possible, Bitcoin uses a proof-of-work algorithm to ensure that Bitcoins are ‘minted’ in a way that stops them from being spent twice. You use a computer to mine (guess a string of numbers) and in doing so, you create a new block on the blockchain and receive Bitcoin as a reward. This method gives cryptocurrencies like Bitcoin a way to maintain a verifiable count of the number of coins. It limits the frequency with which they are produced by making the string of numbers harder depending on the speed that new blocks are added to the chain. Bitcoin mining is now so popular that ever-increasing numbers of computers are mining via the proof-of-work method while using more and more fossil fuel energy to do so. Much more energy, as you can see below in this data set produced by the United Kingdom’s University of Cambridge Judge Business School:
Photons for Positive Change
Solar energy is spreading across the energy infrastructure landscape but not fast enough. Solar infrastructure includes everything from solar panels to batteries. It’s going to be the cheapest energy generation tool for countries at all stages of development. Solar generated energy will have to increase its contribution to global energy production fivefold for the world to reach a global ‘net-zero’ greenhouse gas target by 2030. According to the latest IEA estimates, if Bitcoin mining moved to solar energy at its current consumption rate, we could shave close to 2% from the 6,970 TWh of solar energy needed to achieve the net-zero goal. Not to mention an annual saving of more than 115 million tonnes of carbon released into the atmosphere. Meaningful progress can be made toward this goal by transitioning all cryptocurrency mining to solar infrastructure, especially if that infrastructure can produce surplus clean energy. Energy security, a stable environment and a viable future for cryptocurrency wealth generation will come from the sun.
IOEN and Redgrid’s Solarminer project, currently underway in Venice, California, proves that cryptocurrency mining can be 100% clean and create enough excess solar energy to reduce the cost of living. Click here to #followthesun with our Solarminer in sunny California and see exactly how the IOEN and Redgrid team are accelerating a clean energy future from the rooftops of Venice.
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