Contents
In the eleventh episode of “The ABC of Modernity” we tell how cryptocurrency is mined and why it is dangerous for the environment
.
To keep up with the times and not miss new words, subscribe to the podcast on Apple Podcasts, Yandex.Music and Castbox. Rate and share in the comments the words without which, in your opinion, it is impossible to imagine communication in the XNUMXst century.
What is cryptocurrency mining
Mining (from the English mining – mining) is the process of “mining” cryptocurrency, virtual money, the emission of which is not regulated by anyone. The process works thanks to blockchain technology – a chain of blocks, each of which stores information about a separate transaction. The performance of the blockchain directly depends on the computing power of the computers connected to the chain.
All participants in the blockchain store the entire chain of blocks from the very beginning, constantly adding new blocks to the end. Miners collect and process information about all transactions that are currently taking place with cryptocurrency. If a new block in the blockchain is made according to the rules, it is added to the end of the chain, and the miner receives a reward of 12,5 bitcoins for this – now it is about $690 thousand. Bitcoin is still the first cryptocurrency by market capitalization, followed by Ethereum and Cardano.
Now cryptocurrency mining is impossible without special expensive equipment. For example, Bitcoin mining difficulty increased by 5% in two months. There are industrial mining farms – they can consist of 30-50 miners, or they can be gigantic and include tens of thousands of devices.
How mining heats up the planet
Cryptocurrency mining has a negative impact on the environment. Mining equipment around the world consumes huge amounts of electricity. So, scientists at the University of Cambridge calculated that mining takes 121,36 terawatt-hours (TWh) per year. By comparison, the Dutch energy consumption is 108 TWh per year.
The negative impact on nature can be reduced: for example, alternative energy sources can be used for mining – hydropower and solar panels, and the energy that is emitted as a result of the operation of mining farms can be directed to heating nearby objects. Now 39% of mining farms meet the criterion of carbon neutrality, almost two times less than in 2019.
Read more about mining in the Trends materials:
- How the cryptocurrency market works: podcast “What has changed?”
- Can bitcoin mining be sustainable?
- How the blockchain revolution will change the future of the financial market: seven trends
- How artificial intelligence and cryptocurrency increase the degree of the planet
- “Cryptocurrencies are worse than rat poison” – Warren Buffett’s five predictions
- Elon Musk, Jack Dorsey and Mark Cuban on the Future of Cryptocurrency