Today, traditional cryptocurrency mining operations are huge. Bitcoin and Ethereum mining consumers a large amount of energy that is equivalent to the energy consumption of Nigeria. A country that has around 180 Million inhabitants means around 2 percent of the total population of the world. It is predicted that this percentage will increase and become equivalent to Denmark’s energy consumption by the year 2020.
Cryptocurrency traditional mining usually makes use power that is needed for household networks. Doing so consumes a plenty of energy and demands an end of these kind of practices that are increasing each day. For a bright future of Proof-of-Work blockchain, the system needs to be changed or innovated.
The PoW mining (it is used for Bitcoin and other altcoin mining) has a few negative impacts on the environment. In simple words, PoW (Proof-of-Work) mining requires huge computing power, hence needs a huge amount of electricity. Thus, there is some environmental cost, such as creating and disposing the hardware, and cost of electricity are involved. Though, the same amount of energy is used to print paper Dollars, maintaining banks credit, and in gold mining.
Almost all of the exchange mediums and value stores have an impact on the environment. And Bitcoin, Ethereum, Litecoin, Ripple, Bitcoin Cash, Dash, Monero, and Zcash cryptocurrencies that makes use of PoW are no more different.
Fortunately, hardware and software are needed to fund bank credit (to support currency and types of value store); however, the cryptocurrency mining also requires software and hardware, but works in a totally different way.
Hardware could be created much efficient and software needs to be updated from time to time. The impact of digital banking system of the world, gold mining, cryptocurrency mining can be reduced through the modification of hardware and software. In addition, PayPal can also be upgraded.
To understand the PoW mining impact, first you need to know what PoW mining is.
PoW mining is basically a software that helps in solving complex cryptographic puzzles efficiently. These mathematical algorithms secures the transactions on the public distributed ledger, also known as blockchain. Anybody who owns a digital currency that makes use of Proof-of-Work mining can easily run the software and solve these cryptographic puzzles. These systems change the mining difficulty as per the timing in which puzzles are solved.
This mining process requires more power. The need of better hardware and more power is creating the negative impact on the environment.
Solution to Proof-of-Work Problem
Since the day Proof-of-Work mining started, it has impacted the environment. There is no doubt about it, Proof-of-Work solves plenty of problems. Its success can easily be measured by looking at the value stores, electronic systems, and all other value created by PoW, such as sustaining cryptocurrency and securing the blockchain technology. However, this doesn’t mean that every system can rest.
Renewable energy resources are one of the best solutions to this problem on the table.
While, Proof-of-Stake (in this mining method, the cryptographic puzzle solving effort is substituted by proving the ownership to the amount of a particular coin). Cryptocurrencies like Stellar, IOTA, and Ripple don’t make use of traditional blockchains.
Despite the above-mentioned attempts, there is no ideal solution to this problem is found yet.
However, this does not mean that creative and genius minds are not finding solution to this problem. A few startups are coming that are revolutionizing the traditional cryptocurrency mining by introducing the green factor.
HashGains’ Approach to Establish Green Mining Data Centers
HashGains is one of the known cryptocurrency mining platform in the market. Witnessing the bright future of cryptocurrencies, the veteran blockchain and energy management experts of HashGains are revolutionizing the mining method by introducing a green factor and planning to make it more profitable.
HashGains is planning to build two eco-friendly mega data centers (renewable energy resources like solar and wind energy will be used to generate electricity) in India and Canada. With Solar and Wind energy, HashGains is creating a green revolution in cryptocurrency mining industry. Now, experienced as well as beginners can mine their preferred cryptocurrencies with HashGains and get an access to the lowest cost of energy globally.
Scalability, decentralization, and unprecedented mobility are some of the competitive advantages of mining operations.
Seeing the harmful gas emissions from the cryptocurrency mining plants, the upcoming mining operations should be bio-friendly, more profitable, decentralize, and robust in contrast to fluctuations. The next generation is HashGains’ ground-breaking business model that combines renewable energy resources and competitive prices on a large scale.
The picture is clear that PoW (Proof-of-Work) mining make a negative impact on the environment, as a huge amount of electricity and hardware are needed to solve complex cryptographic problems. Therefore, it is better to opt for the trending eco-friendly cryptocurrency mining system as it has the potential to solve this problem and will also protect the environment from being damaged.