The business model behind cryptomining is exceedingly dependent on the supply of electricity. The two crucial factors for mining companies are price, and availability of electric power. Mining of cryptocurrencies in the recent past has significantly contributed to climate change. This increase is primarily due to the mining concentrated in countries using low-cost fossil fuels which are widely known to play a massive role in climate change. These countries also operate within structures with low socio-economic and environmental standards.
On the other hand, this concentration of miners undermines the distributed ledger system, increasing the risk of manipulation. This inequality leaves miners on a micro level susceptible to regulatory changes and price fluctuations of energy. With this going on, the next generation needs to build and restore the cryptocurrency economy into something more climate-friendly, profitable and decentralized.
Envion’s business model is technology-driven and on a global scale, combines green energy sources and economic viability.
As it stands, IT is one of the largest electricity consumers, using up almost 10% of the world’s electricity generated annually. Cloud computing is taking up more than a quarter of the world’s annual kilowatt-hour consumption. For comparison purposes, the carbon footprint created is roughly equivalent to that of the whole aviation industry. The extent to which it affects the environment is alarming, given that cloud computing doubles every four years.
In cloud computing, cryptocurrency mining is the fastest growing application. As of 2017, the energy consumed by Bitcoin and Ethereum has increased from zero to 19.2 TW h in the past seven years. The usage is equivalent to what Iceland and Puerto Rico produce. The growth implications of the IT industry are vastly affecting who can participate and who won’t be able to. It is only those with exponential access to electricity that can mine freely. This factor benefits just a few, including government and corporations, leaving individuals at the mercy of economic giants.
What makes cryptomining increasingly difficult to regulate is that there is not global body governing electricity. The difference between industrialized countries and the rest remains quite significant when it comes to energy production. Worldwide, the demand for energy is still growing. The harmful environmental effects and potential depletion of fossil fuels will see a 13% increase in renewable energy (mainly solar and wind) to meet the demand for electricity.
The energy imbalance has triggered massive fluctuations in spot market energy prices, price differences between sectors and regulatory responses in different parts of the world. To the understanding mind, it is easy to see how specific regions are being affected by being entirely left out in the participation of cryptomining. There is, however, a solution for this.
For cryptocurrencies to gain mass acceptance, system innovations need to be stepped up. From an energy perspective, mining operations should be free from fossil and nuclear energy. Industrialized countries using these sources of energy have the upper hand in the cryptocurrency economy, leaving out nations with medium to low electricity output who mostly rely on hydroelectricity.
In essence, through their Mobile Mining Units (MMUs) system, Envion is putting the power back to the crypto community. They are doing so by granting the holder the ability to tap into an electricity source in any part of the globe. The power sources include hydro, solar, wind, and fossil power plants. It means that individuals don’t have to make substantial investments in technology and hardware to take part.
Envion is working to pave the way to have a substantial audience take part in mining. As part of their strategy, everyone in their community has the right to vote or veto decisions. This further decentralizes the power, as opposed to having a privileged group of individuals setting the market trends.
Some of the decisions that community members can make are where a mining location will be and coin choices. Envion can be thought to be laying the foundation for the innovative future of crypto mining through their MMUs. By large, they are making blockchain technology accessible to anyone who wants to take part in this new economy.
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