What is hydro mining?
When we hear the word ‘hydro’, we understand that it is about water. But how do water and cryptocurrency mining fit together? Hydro mining is a form of mining that uses water to generate electricity and cool down microschemes.
Mining itself is the procedure of cryptocoins creation. This process is also required to carry out transactions with the very same coins. People constantly transfer funds to each other within systems called blockchains.
The whole set of performed transactions must be approved. Nodes collect them and compose blocks. After a new block is created, it has to be processed by mathematical calculations and then added to blockchain. Obviously, all calculations demand a significant amount of resources to be supported, considering how huge modern mining rigs are. Consequently, more and more non-refundable fuel is used to provide the necessary power supply.
So what’s with hydro mining?
It seems mining, that relies on hydroelectric power and water cooling systems, brings a bunch of new opportunities to the ecology safety. It will remove ecology related complains from the pool of mining issues.
It is worth noting that the mining facilities of the two most popular cryptocurrencies, bitcoin and ether, consume as much power as the whole Morocco. To be more precise, for 12 months, a dish washing machine consumes as much power as the approval of five ether transactions. And there are 300,000 transactions made every day. Just imagine, how many dishwashers it is!
Referring to Digiconomist statistics, a single transaction in the Ethereum requires as much power as a standard American household could use during 36 hours. What about Bitcoin? The number exceeds 130 hours, which is much more astonishing.
Either way, no one can deny that Bitcoin security is one of its main features. Security needs calculations, and the calculations, in turn, need power that is mainly taken from common non-renewable resources. However, there are options. Some companies, like HydroMiner, implement mining rigs powered by water flow, hence making them cheaper and more ecological.
Moreover, the very same water is used to cool down the rigs. This reduces the cost of the facility by 85%. The more mining facilities adopt this method, the better, as it helps minimize harm done to the environment.
Are there other advantages?
There are more reasons why hydro mining is an attractive option — reliability, low price, and good performance. Special calculating devices used for mining work nonstop. Their breakdown in the wake of overheating is just a matter of time (and luck). Needless to mention that this problem is very important for miners.
If a mining facility does not work, it stops being profitable (obviously). Water cooling systems greatly reduce the chance of overheating. This method has been already tested by the computer hardware manufacturers and proved itself. Moreover, mining efficiency significantly increases, since the performance of mining rigs gets optimized.
In conclusion, hydroelectric power is somewhat natural. It prevents overheating, produces enough power supply, has an influence on the performance of mining equipment, and at the same time solves such a vital problem as the safety of the nature.