The Crypto Industry Wants to Go Green — But That's Easier Said Than Done

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The whole process behind cryptocurrency mining is underpinned by something known as “proof of work.” And it uses up an incredibly large amount of energy.

The mine in question, a warehouse-like building located in the military town of Boden, houses 15,000 of these mining rigs in total. At 86,000 square feet, it's bigger than a standard soccer pitch., a Canadian firm that focuses on using green and renewable energy to mine crypto.At 86,000 square feet, Hive's Swedish mining facility is bigger than a standard soccer pitch.

Eriksson says crypto miners are using excess energy capacity that would have otherwise been wasted — in other words, it's not required by households in the region.Finansinspektionen, the Swedish finance watchdog, is calling on the European Union to ban crypto mining due to its huge energy usage. "There's quite a lot of trials going on with that at the moment," she said."If that's successful, then hopefully that will filter out to the rest of the sector."

Ethereum is currently in the middle of a lengthy transition to proof of stake, a move advocates say would reduce its energy consumption by over 99%. And other cryptos, like cardano and solan, already operate on proof of stake networks.

 

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