Cryptocurrency mining is an activity that requires the use of huge computer equipment, known as mining rigs, which demand colossal amounts of energy, which has a direct impact on the environment.
With the aim of directing the cryptocurrency sector towards renewable energy, two blockchain companies prepare the first mining platform powered solely by renewable energy
For this reason, DMG Blockchain Solutions and Argo Blockchain, two companies dedicated to the world of cryptocurrencies and blockchain, have come together to launch a mining platform powered solely by renewable energy, the world’s first of its kind, according to a company statement.
This joint adventure between the two companies will receive the name of “Terra Pool” and it will mine Bitcoin using entirely hydroelectric energy, eliminating fossil fuels and therefore the emission of greenhouse gases from the equation.
While key details of the project are unknown, such as the launch date or its mode of operation (whether it will use its own power generators or require miners to use clean energy sources), the launch statement states that “Terra Pool will offer an accessible platform and incentives for miners who want to produce Bitcoins in a sustainable way “
This is more symbolic than practical (since it will hardly be a drop of water in the ocean of Bitcoin mining), and spokesmen for both companies say that Terra Pool will serve as a proof of concept for help improve the image of Bitcoin and other cryptocurrencies in relation to their climate impact.
The DMG Blockchain and Argo Blockchain initiative follows in the wake of similar ones. This is the case of the company Square, dedicated to Internet payments, which last December allocated 10 million dollars to projects that promote the use of clean energy within the Bitcoin environment.
This interest in pairing renewables and cryptocurrencies seems to be accentuated now that criticism of Bitcoin’s environmental impact is reaching a fever pitch due to the exponential growth of mining operations. Annually, and according to the Center for Alternative Finance at the University of Cambridge, the energy consumed by mining Bitcoin is 128.77 terawatt-hours per year, which supposes more energy than that consumed by countries like Poland, Argentina or the Netherlands in one year.