Cryptocurrencies have created huge changes to the global economy. The prices of cryptocurrencies have skyrocketed in the last couple of years as they have become quite sought after assets. One of the best ways to acquire them is by the process of mining.
This sort of mining is defined as a validation of transactions in which successful miners obtain cryptocurrency as a reward. In order to be competitive with other crypto miners, specialized machines such as FPGAs and ASICs are used, and the race between miners has started with the introduction of the first decentralized cryptocurrency Bitcoin.
These machines cost a huge amount of money to set up. The costs are even higher if we include the cooling facilities used to cool the heat they produce and the electricity required to run them. Mining brings a lot of environmental concerns along with it. Btxchange.io reports quite the astonishing fact that in November of last year, the energy spent on crypto mining was more than what 159 countries of the world spent.
However, there are some startups looking to tackle this issue. For example, 4NEW’s ICO made $41.5 million to date. The startup created KWATT, the first ever cryptocurrency dedicated to energy use that tokenizes electricity.
The KWATT coins will be used for buying and selling the energy which is generated using nothing but waste. KWATT coin is an ERC20 token based on Ethereum smart contracts.
The company plans to have three power plants in total with an output of around one billion kilowatts per annum. In the long run, its vision is that KWATT becomes a standard for energy and waste transactions.
In order to find out more about Bitcoin mining and how much electricity it spent to do it, check out the infographic which follows.
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