Bitcoin is often mocked for its energy consumption. However, projects to limit its ecological impact are developing considerably. Focus today on the collaboration between Tesla, Block, and Blockstream. An initiative that plans to use solar energy for BTC mining. Can this revive Tesla’s interest in the number 1 digital asset? Response elements!
Mining Bitcoin Using Solar Power
This is the plan wanted by the Tesla company. The American firm, among the 10 largest in the world, has just partnered with Block and Blockstream for the extraction of green Bitcoins. If this project is presented today, it is the result of the first collaboration between Block and Blockstream which dates from June 2021.
For the creation of this greener mining farm, the stakeholders want to set up in Texas and use solar energy. Solar technology will also be an in-house creation of the Tesla firm.
To detail their ambitions, the companies issued a press release. He specifies that the project should be finalized by the end of 2022. To justify this collaboration, Adam Back, co-founder of Blockstream, evokes the desire to prove that Bitcoin mining can be done on a large scale by using renewable energy. An element that seems more and more real.
Indeed, according to data from the CryptoSlate platform, mining via renewable energies has surged in the space for a few years. It has thus gone from barely 1% to more than 58% today. And the trend should continue to continue.
How will this setup work?
The press release about this project presents the farm being powered by 3.8-megawatt solar panels. All accompanied by a 12 megawatt-hour megapack. This equipment will be provided by the giant Tesla. In terms of performance, the mine should be able to offer a hash rate of 30 petahashes per second.
The installation will also be equipped with a dashboard. This should allow the general public to follow the performance of the project and its evolution in real-time. Among the main performance metrics are energy production as well as the total number of BTC mined through the installation. Through this, Tesla intends to offer an interactive project. Why not the idea of seeing other projects follow suit.
In any case, this more environmentally friendly installation raises questions about the Californian firm’s interest in Bitcoin. In recent months, Tesla has changed its tune on Bitcoin several times. All this is under the background of ecological issues.
First accepted as a means of payment and then rejected by Elon Musk, Bitcoin could regain some form of popularity with Tesla. To the point of making it a means of payment accepted in the shop again? Why not. In any case, this is a track validated by a certain number of observers of the crypto world.
Bitcoin Mining: A Hot Topic
The emergence of a real ecological conscience is a major challenge in this 21st century. And on this point, Bitcoin is obviously no exception to the rule. Regularly singled out for its high energy consumption, Bitcoin divides.
To better understand why Bitcoin is such a big energy consumer, it is important to understand how its protocol works. This is based on proof of work. The Bitcoin mining protocol is articulated in such a way that it is increasingly complex to mine.
Always requiring more computing power to solve increasingly long mathematical calculations. It is this gradation of complexity that requires ever greater energy consumption. And it is this mechanism of exponential consumption that seems the scariest.
Recently, the MiCA text (Markets in Crypto Assets) highlighted these divergences. In its first version, the text of the law which seeks to regulate the crypto universe sought in terms to outlaw Proof of Work mechanisms. A text that could have put a severe halt to the mother of cryptocurrencies. A text that was ultimately not adopted by MEPs.