Actual CO2 emissions from mining

David Kemp

Researchers from Denmark found that mining bitcoin each year results in only 17.2 megatons of carbon dioxide emissions, not 63 megatons as previously thought. The result obtained is 2/3 less than conventional calculations.

Research result

Massimo Pizzol and Suzanne Koehler saw a huge difference between CO2 emissions when creating electric energy in different territories of the PRC. They contain a significant share of bitcoin mining capacity. In Sichuan the electricity produced by hydroelectric power plants in the Eastern Mongolia – coal ES. In the first case, there are almost no carbon dioxide emissions, and in the second case, a huge amount of СО2. is released.

The Cambridge center for alternative Finance concluded that the annual consumption of the bitcoin network is almost 70 terawatt-hours. Austria and Colombia consume less, but Venezuela consumes more.

Scientists from Switzerland have created an alternative to bitcoin without energy consumption

Experts from the Polytechnic school of Lausanne reported on the development of algorithms that ensure the security of operations of cryptographic currencies at the bitcoin level. At the same time, their energy security is almost zero.

Rashid Guerraoui, a Swiss Professor, noted that the developed algorithm does not require reaching a network consensus in order to confirm operations. During its implementation, participants perform complex calculations, for which the equipment requires a huge amount of electricity.

The bitcoin ecosystem is built so that participants don't trust each other. Swiss specialists have the opposite approach. They use the Byzantine Reliable Broadcast algorithm, which is based on communication and player trust. The system initially expects all participants to be honest. This is how it will view them, unless there are signs to the contrary.

A random player confirms the operation (the question concerns data exchange). When malicious behavior is detected by one of the participants, others ignore it.

Mr. Guerraoui notes that when mining bitcoin, as much carbon dioxide is released into the environment as a country like Denmark produces it. The solution proposed by his team has a power consumption that is comparable to e-mail exchange. The expert emphasized, "Only a few grams of carbon dioxide will replace the 300 kilograms that are required for a single bitcoin operation today."

The proposed system has a narrower use in comparison with the bitcoin blockchain, it can be used exclusively to manage cryptographic and other assets. The algorithm does not allow working with smart contracts and other complex transactions. By the end of next year, scientists can reveal the source code of the Byzantine Reliable Broadcast. In the article "The Head of Forbs on cryptocurrency", you can read a lot about experts' opinions about the future of digital money.

Bitcoin mining requires more energy than Switzerland

The main cryptocurrency consumes more electricity than small States, including Kuwait or Switzerland. This statement was made by scientists from the University of Cambridge.

Thanks to a specially developed online tool, you can analyze the total electricity consumption from bitcoin mining. The resulting indicator can be compared with different countries of the world and other objects.

According to the service data, at the moment the power consumption of the bitcoin network is 7.5 gigawatts. This corresponds to approximately 0.28% of world energy consumption.

In annual terms, to support the #1 cryptocurrency network, which is based on the Proof-of-Work algorithm, it requires more energy than Kuwait and Switzerland need, as well as slightly less than Austria and the Czech Republic.

It is noteworthy that household appliances only in the United States that are used in Standby mode consume a huge amount of electrical energy. Its quantity would be sufficient to support the bitcoin network for 4 years. Yet it takes as much energy to power the bitcoin network as it would take to heat water in all of Britain's electric kettles for 11 years.

Bitcoin miners buy secondary equipment and prioritize the electricity generated from hydroelectric power plants

Miners from China are actively purchasing used equipment for mining cryptographic currencies, they enter into agreements with farm operators. They hope that the HPP will have accumulated significant reserves by the summer. This will allow you to buy energy at very low rates.

Yunnan and Sichuan provinces are projected to have the lowest tariffs. According to the operator of 6 Hashage farms, during the summer period, the cost of a kilowatt / hour will be about a quarter of the yuan, which corresponds to less than 4 us cents.

Xiong Cheng, who is the head of Hashage, said that private and corporate miners reported being ready to locate more than a million devices. The first group accounts for 1-3 thousand miners, the second - up to tens of thousands.

Of particular interest are miners from the provinces of Xinjiang and Inner Mongolia, where the cost of 1 kWh of electricity is about 5 cents.

However, Mr. Cheng noted that the Chinese market for secondary miners is growing. So, the Antminer S9 used model is sold in the region of 100-200 dollars. Some sellers claim that they can buy supposedly new S9 for three hundred dollars, but the official website of the manufacturer offers equipment for 450 dollars.

Although bitcoin is mined with lower energy costs than previously claimed, the figure is still colossal. For this reason, alternative cryptocurrencies are being actively developed. If you want to participate in investment, such projects have huge prospects. You should definitely consider adding it to your crypto portfolio.