Solar Energy Although mechanisms such as Proof-of-Stake are popular in the cryptocurrency market, cryptocurrencies that use data mining protocols such as Bitcoin (BTC) still predominate.
Data mining is considered the driving force of major blockchain networks that use Proof-of-Work mechanisms. However, the indiscriminate use of electricity for cryptocurrency mining can be worrying.
This concern affects countries like China, for example, which recently banned large Bitcoin mining farms, directly affecting the price of BTC in the market.
The use of electricity for Bitcoin mining has raised the alarm on a global scale while spurring the growth of renewable energy alternatives, as cryptocurrency mining consumes more energy than the whole of Argentina.
Renewable energy source
In an attempt to reduce the impacts caused by Bitcoin mining in the world, the Bitcoin Mining Council was recently created. Through this group, it was observed that cryptocurrency mining is using renewable energy sources such as solar energy.
According to a board report published in May 2021, 67% of mining companies that participated in the survey used renewable energy in the Bitcoin mining process.
Thus, considering the data obtained by the survey, which reached 32% of the entire mining industry, the council concluded that 56% of all cryptocurrency mining activity is the result of clean energy sources.
Data mining
Most networks using blockchain technology rely on data mining to register new blocks on the network. A survey carried out by the University of Cambridge points out that Bitcoin already consumes more energy than some countries, such as Argentina.
According to figures from the 2021 survey, Bitcoin’s electricity use amounts to more than 121 Terawatts per hour. In addition to surpassing Argentina in the ranking of largest consumers, the cryptocurrency is close to reaching the consumption of Norway in the list.
In total, if Bitcoin were a country, cryptocurrency would occupy the 30th position among the countries that consume the most electricity in the world. Considering the annual energy used by the cryptocurrency, it is as if 0.5% of all-electric energy production was directed to BTC mining.
The Light DeFi’s big bet
Electricity consumption through data mining in the cryptocurrency market is still of concern, and initiatives such as Light DeFi could solve this problem.
Light DeFi was developed to create a photovoltaic plant for solar energy production and intends to become one of the largest sources of renewable energy in Brazil that bets on solar energy.
According to the token project, the fees charged by the Light DeFi network will be responsible for financing the photovoltaic plant project. The token set aside a digital wallet where 5% of the network fees will be used to finance the construction of this plant.
At the same time that it will have a plant for clean energy production, Light DeFi intends to consolidate itself in the cryptocurrency mining industry. With a renewable energy source, the token can develop a mining farm right away, with clean energy and solving the electricity consumption problem in the data mining activity.
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