As the readers may be well aware of, Bitcoin mining requires a lot of energy. The rate of block creation will go up when more miners join. That will increase the network difficulty. As computational requirements increase, the power consumption increases. Since mining provides a solid stream of revenue, miners are willing to invest in huge power consuming hardware.
The power consumption of Bitcoin network has grown to epic proportions in the past few years. Rough estimates indicate that the overall power consumed by Bitcoin network is greater than the energy consumed by Denmark. Instead of using the power generated from fossil fuels, 4NEW, a UK based company is planning to establish the world’s first eco-friendly, tangible, waste-to-energy block chain solution.
The company plans to recycle waste into energy, which will be then sold to national grid or used for crypto mining. The cost of producing the energy is expected to be offset from waste collection services and the sale of byproducts. Thus, energy produced will be available for sale to the national grid. The company also counts on the fact that the price of 1 kilowatt of power has been stable at about $0.15 for the past five decades. 4NEW expects the trend to continue in the foreseeable future. The company plans to apply this finite lifetime supply of energy to its coin, named KWATT. Each KWATT, the symbol of 4NEW’s coin, represents 1 kilowatt of electricity for a year.
Being a producer of energy, 4NEW believes that it can standardize transaction fees with the crypto domain. Since other block chains have to purchase energy, standardization of transaction fees might not be possible for them. The company is planning to create a payment system that can serve diverse industries, while standardizing waste, energy, and crypto currency industries. Going ahead, KWATT hopes to become a global currency used in all sectors.
The plant is planned to be erected at Sheffield (30 acres), Hertfordshire (10 acres), and New Castle (5 acres). To begin with, the first plant will be launched with a power generation capacity of 10 MW per hour. The maximum annual capacity aimed from the entire project is 346 million kilowatts per year.
After deducting the down time for maintenance and repair, 4NEW expects the total power output to be approximately 300 million kilowatts. So, the company plans to issue a maximum of 300 million KWATT coins only. The holders will be able to offer the energy to the national grid or apply to crypto mining farm. The management plans to reinvest 35% of its net profit to enable future development of plants. Further, the founders and insiders will be restricted from selling any of their holdings until January 1, 2019. The company is currently offering 1KWATT coin for $0.50. The value is adjusted daily on the basis of fluctuation in the value of Ether.