One Bitcoin transaction takes more energy than a household uses in a week

November 13, 2017 by  
Filed under Business, Green

Although Bitcoin has suffered a dramatic fall in value over the past several days, 2017 has seen Bitcoin’s value reach new heights. But with its increased value comes an increased strain on energy consumption. According to cryptocurrency analyst Alex de Vries, also known as Digiconomist , it would be profitable to use 24 terawatt-hours of electricity, about the equivalent annual energy consumption to Nigeria, a nation of 186 million, to “mine” Bitcoins each year. Even simple transactions with Bitcoin consume large amounts of energy; 215 kilowatt-hours (KWh), or enough electricity to power an American household for a week, are required to complete each of the roughly 300,000 Bitcoin transactions that occur each day. Bitcoins are created by “ mining ,” a process which involves running a powerful computing system so that it may solve complex cryptographic puzzles and produce a Bitcoin. The price of Bitcoin is proportional to the amount of electricity that can profitably be used to extract Bitcoin from a computing rig. When the price rises, miners must compensate by adding more powerful computing components, which then adds to the energy bill. Motherboard estimates that, at a minimum, the energy used by global Bitcoin extraction network at present could power 821,940 average American homes daily. Related: This Russian cottage is heated for free with Bitcoin mining What does this energy consumption mean for climate change and the environment? Using data available from a coal-powered Bitcoin mine in Mongolia , the Digiconomist determined that this single mine produces the emissions equivalent of 203,000 car kilometers traveled per hour of mining. When asked by Motherboard whether this energy problem might be fixed as the system matures, the Digiconomist responded that “Blockchain is inefficient tech by design, as we create trust by building a system based on distrust.” Bitcoin transactions are thousands of times less efficient than credit card transactions, by design. In the brave new world of Bitcoin, it seems that unless drastic changes are made, the cryptocurrency will continue to consume enormous amounts of energy. Via Motherboard Images via Depositphotos (1)

Originally posted here:
One Bitcoin transaction takes more energy than a household uses in a week

This Russian cottage is heated for free with Bitcoin mining

November 7, 2017 by  
Filed under Business, Eco, Green

In the last month, Bitcoin — the biggest and best-known cryptocurrency — rose in value by 480 percent . The sudden spike spurred more people to invest in the currency, while others dedicate computers to the task of mining bitcoins . Siberian entrepreneurs Ilya Frolov and Dmitry Tolmachyov are engaged in the latter – and they’ve found that they’re able to heat a 20-square-meter with two machines while pocketing $430 per month. Bitcoin transactions require a lot of computer processing power, which in turn produces a substantial amount of heat . Most “miners” just release that heat into the atmosphere — but not Frolov and Tolmachyov. The Russian entrepreneurs built a cottage in the Siberian town of Irkutsk that is heated by two Bitcoin mining machines. Each month, the men make about $430. And, they pay $0 to heat the 20-square-meter abode. In the video above, Quartz details how this is possible. Related: Power-hungry Bitcoin could consume as much energy as Denmark by 2020 Because Bitcoin is relatively new, it is still considered a highly volatile investment . However it has provided gains exceeding those of any other currency in every year but one since 2010, according to The Independent. The process of “mining” Bitcoin determines which transactions are valid, and which should be added to the blockchain — an ever-expanding ledger that holds the transaction history of all Bitcoins in circulation. The blockchain lives in the thousands of machines on the bitcoin network. Mining also ensures the system cannot be gamed, thus, making the cryptocurrency more secure than the US dollar. Every ten minutes, mining computers collect a few hundred pending Bitcoin transactions and turn them into a mathematical puzzle. The first miner to find the solution declares it to others on the network. The other miners then check whether the sender of the funds has the right to spend the money. If enough approval is granted, the block is cryptographically added to the ledger and the miners move onto the next set of transactions. A miner who finds the solution gets 12.5 Bitcoins as a reward, but only after another 99 blocks have been added to the ledger. This gives all miners an incentive to participate in the system and validate transactions. It also provides protection; to double-spend a Bitcoin, digital bank robbers would have to rewrite the blockchain — that would require more than half of the network’s puzzle-solving capacity! Via Quartz , The Economist , The Independent Images via YouTube , Pixabay

Read more: 
This Russian cottage is heated for free with Bitcoin mining

How the blockchain will disrupt energy markets

October 3, 2016 by  
Filed under Business, Green

Comments Off on How the blockchain will disrupt energy markets

One big obstacle to a distributed grid is the decades-old transaction model. Now, the cryptography behind the Bitcoin digital currency could rewrite the rules.

More:
How the blockchain will disrupt energy markets

Lessons on climate leadership, from ballet dancers

October 3, 2016 by  
Filed under Business, Green

Comments Off on Lessons on climate leadership, from ballet dancers

How a Climate Week arts event provided insights on how we might better collaborate.

Go here to read the rest:
Lessons on climate leadership, from ballet dancers

Bad Behavior has blocked 1153 access attempts in the last 7 days.