Finding crypto a place to call home
The last year has seen a notable proportion of crypto processing move from country to county. After being effectively kicked out of China at the start of the year, it moved into Kazakhstan, which initially welcomed it with open arms before the national power-grid started to struggle and the government started to actively discourage crypto infrastructure. Unless it takes a different approach, crypto could become a haunted shadow of its own potential, doomed to wander from country to country, grid to grid, in search of a place that it can call home. The good news is that there’s a solution already in place.
A recent article in Fortune magazine discusses what it describes as a rolling disaster taking place in the crypto space.
After China successfully clamped down on crypto mining in early to mid-2021, a large proportion of capacity moved into neighbouring Kazakhstan. Initially welcomed, the government quickly cooled on the newcomers as the country’s proportion of the global hashrate doubled to an estimated 18% between June and August. The additional activity put pressure on the national grid, causing blackouts for homes and existing businesses.
As a result, the article explains, in October the Kazakh government lowered the volume of electricity that miners could tap by 95%, from around 2,000 gigawatt hours, to just 100gWh. A further article from Decrypt adds further detail to the issue.
The consequence of this is that the miners are now once again being forced to pack up and find another home.
A tragic tale of lost potential
Crypto has the potential to represent a profound change in the way that businesses, individuals and governments interact, but it is not going to achieve that potential if we can’t find a way to offer stable and sustainable power.
What’s needed is a sustainable digital energy currency that serves the global blockchain economy to maintain the security and stability of the Bitcoin network and other decentralized finance (DeFi) applications that require a steady flow of energy.
Regulators, innovators and network participants need to work together in good faith to maintain fair, stable and responsible energy markets to power the blockchain economy of the future without jeopardising the needs of domestic consumers or existing businesses.
An effective solution
PermianChain offers a way to achieve this. We have created a platform that uses energy from excess natural gas that is currently wasted. Our digital energy currency is simple to use for the crypto miners that need the energy, and simple to implement for the oil and gas companies that have energy to offer.
And because it is based on creating energy from natural gas that would otherwise have been wasted, it offers two key benefits on the current situation:
1: It stops crypto activities competing with existing businesses and individuals for power, taking away the pressure on national grids. By removing the risk of blackouts, you reduce the risk of a government clampdown
2: It also reduces the impact that both the crypto and the oil and gas sectors have on the environment. By improving the way that crypto uses energy, you enhance perceptions of the sector and potentially attract more liquidity
Crypto is still in its infancy, but PermianChain offers stability based on clean, sustainable and responsibly produced energy. It will mean that miners will be welcomed for the income and innovation that they bring to a country.
We will put an end to the rolling disaster that has the potential to smother crypto’s myriad of potential enhancements.
PermianChain Technologies is a pioneer member of the Blockchain Research Institute. PermianChain is investigating ways to harness the power of blockchain technology, data science and artificial intelligence to digitize, tokenize and monetize proven but undeveloped natural resources, starting with oil and gas. The PermianChain, which already has secured oil and gas reserves to be listed on its platform, intends to unlock liquidity to revolutionise the way that oil and gas reserves are funded, produced, bought and sold on a permissioned-access blockchain. The firm is currently in the process of applying to for its regulated digital securities trading and investment platform.