Bitcoin gets a bad name for its excessive energy consumption. However is there a way for blockchain-based systems to improve the management of conventional electricity systems, helping to reduce waste and manage their loads?
Perhaps there is: EZ Blockchain is a company that is using flared gas to run bitcoin mining stations. Cryptocurrency “mining” is the term used for using powerful computers to solve difficult equations, thus validating previous transactions and generating a reward when successful of cryptocurrency tokens. This is an essential feature of many cryptocurrencies.
Some cryptocurrency mining companies use hydropower or solar arrays to reduce the environmental footprint. EZ Blockchain has come up with a simple idea, with its mobile crypto mining rigs: it uses waste natural gas, which is often flared during oil extraction – when it can't be economically used – to mine bitcoin, generating a financial return which is split between EZ Blockchain and the companies.
Sergii Gerasymovych, is founder and CEO of the company. He says, “EZ Blockchain is a startup, the company was founded by me and my partner in 2017. We have now installed over fifty mobile data centers in five US states and Canada.”
It also deploys these data centers to use up excess renewable energy. Renewable arrays such as wind and solar need consistent demand. There are also time when there is too much power coming in. Instead of shutting the power down, the data centers start up mining cryptocurrencies, making use of the excess electricity. Sergii continues, “We can actually really provide the companies who invested into winds or solar assets a much quicker return on investment because Bitcoin mining paired with storage and with power generation gives much better profits than being shut down during the night, for example, when the wind blows, but there is not enough demand.”
This obviously makes sense to utilities, as there is a lot of demand for these mobile data centers: the company is growing very fast and has had to hire more staff to keep up with orders. This innovative approach clearly has benefits for both energy producers and cryptocurrency mining companies.