Such innovations are expanding the crypto market and creating a major change in the current financial structure.
However, several challenges in the crypto industry are stirring up debates between enthusiasts, governments, and other shareholders. One of the topics in discussion is the impact of crypto mining on the environment. Crypto mining involves the process of verifying and confirming transactions in a blockchain.
Miners usually compete to validate transactions by solving complex mathematical equations. In return, miners receive a reward for maintaining order in the blockchain network. Applying the mining concept requires a significant amount of power and hardware resources.
As such, it causes more harm than good to the environment with a large amount of carbon emissions. So, what benefits does nuclear power have to offer in the crypto mining exercise? Let’s have a look.
Greener Transaction Verification Processes
Nuclear power refers to the process of separating uranium or plutonium atoms in nuclear reactors. The energy generated is thereafter used to boil water into steam. Finally, the moisture becomes applicable in moving turbines which end up producing electricity. Implementing nuclear power can present several strengths in the digital currency mining space. They include:
Zero Carbon Energy Source
Unlike traditional energy sources, nuclear power doesn’t discharge any carbon into the environment. A 2019 study reveals that Bitcoin mining emits almost 22 megatons of carbon. The gas gets into the air once fossil fuels such as coal are burnt to generate energy.
Excessive release of carbon is a major contributor to the climatic changes seen today. Thus, we begin to see a change in our climate when the average global temperature continues to warm. Within no time, various parts of the world start experiencing extreme weather conditions such as drought.
Opting for nuclear energy can significantly reduce the amount of carbon getting into the atmosphere. A separate finding estimates that the US could reduce its carbon emissions by 476M metric tons in 2019. Hence, nuclear power makes it a convenient source of energy to perform crypto mining.
Nuclear is Readily Available
Multiple energy sources rely on weather conditions like wind or solar to produce sufficient power. Such conditions don’t affect how nuclear power plants generate their energy. Nuclear energy remains the most reliable source of power compared to other fossil fuels. What’s more, the power plants can operate on a 24/7 basis. The Office of Nuclear Energy states that power plants work for extended periods and refuel after two years.
Having a reliable source of energy gives crypto miners the ability to carry out blockchain operations non-stop. It also reduces the miners’ concern about where they can get a large amount of mining power. Thus, blockchain participants can easily validate transactions without any energy distractions.
Nuclear energy provides digital currency miners with cheaper electricity solutions. It originates from the fact that uranium has a lower price. Without a doubt, developing nuclear power plants might attract larger expenses.
However, the high cost of setting up the plants neutralizes with a cheaper and long-term operational charge. Nuclear reactors responsible for splitting uranium can run for almost 40-60 years. In the long run, miners can access clean and affordable electricity to manage blockchains.
Stable and Safe
The growth of technology is making nuclear energy a safer source to generate power. Major power plant entities continue to explore how they can generate nuclear energy without harming the environment.
Compared to other energy sources, nuclear power holds fewer accidental incidents, which could potentially bring destruction. At the same time, nuclear energy offers a lot of flexibility to users.
Crypto miners can set up their mining rigs in any environmental condition. As a relatively safe option, governments can allow users to take part in crypto mining.
High Amount of Energy
Nuclear power has a higher amount of energy density as opposed to burning fossil fuels. What’s more, the process of generating nuclear energy takes up minimal amounts of uranium. Nuclear fission procedures hold an efficiency that is 8000x greater when producing power. As such, a bigger energy volume makes it a convenient source of power for crypto miners.
Previous Calls for Environmentally Friendly Procedures
The discussion around crypto mining and its environmental effects is becoming more evident. On top of that, it involves popular influencers in the digital asset space. An excellent example of these well-known individuals includes Tesla’s CEO, Elon Musk.
In February 2021, the automobile company made a Bitcoin investment worth $1B. Additionally, Tesla began to accept Bitcoin payments for its luxurious cars. After a while, Elon declined to accept BTC payments because of the environmental changes that crypto-mining could bring.
In his tweet, the Tesla mogul expresses his concern about the growing use of fossil fuels for mining. According to him, Bitcoin mining cannot continue at the expense of endangering the environment.
A similar move came from Jack Dorsey’s Square Inc company. Going by a 2020 report, Square said that it plans on running with a net-zero carbon ecosystem. Jack believes that PoW currencies can take up clean power and reduce their carbon footprints.
In that regard, Square set aside $10M to support companies working on greener Bitcoin mining technologies.
The search for environmentally friendly approaches in crypto mining is receiving the global limelight. Individuals are becoming more aware of what mining activities can do to the climate. Selecting and using nuclear energy solutions can be of great help in maintaining a greener economy.
Through nuclear power, miners have access to affordable electricity, which is also readily available. Realizing a greener and decentralized financial system will require massive participation from everyone.
Even as the world hosts yet another climate summit, the push for cleaner energy solutions should be of top priority.