The future looks brighter for cryptocurrencies. Day by day, adoption grows more, little by little. Yes, fiat money is still in control of the world, but now cryptocurrencies are more than a thriving experiment and are certainly capable of managing peer to peer operations around the world.
But sometimes we forget about the underlying architecture that brings it all together and allows those operations to be possible. Mining. The computing intensive part of the network. For a cryptocurrency to be operational, there must be a mining collective capable of operating the network, and at the same time, being able to turn a profit for it.
Japanese Mining Turns To Solar
Today, OZ Mining, a subsidiary of Kumamoto-Energy, announced that they will use power from their solar plants to drive mining operations all around Japan, according to Bitcoinist. They also declared that they will partner with third parties to build more solar farms in the area where they operate. This announcement has two clear objectives for the company:
- Decrease the cost of the power used for mining purposes: Recently, a study that listed the cost of mining a bitcoin in every country in the world announced that Japan was one of the more expensive sites for running a mining operation. Renewables have a high cost of entry due to infrastructure, but in the long road, the costs decrease.
- Set a self-sustainable precedent for mining: The amount of energy used for mining today is negligible. But if cryptocurrencies really take over the world, they can take a large chunk of all the energy generated. To prevent that, this kind of initiatives must be taken.
The Bottom Line:
Mining will always be a necessary component of the cryptocurrency equation. So, every bit of help to make it more efficient and self-sustainable is welcome. The adoption of these renewable sources and the new advancements in ASIC bring hope that, in the future, mining will be more efficient and less power draining than it is now.