In the past few years, the dynamic changes in the market value of Bitcoin and skyrocketing electricity prices have put extreme pressure on miners across the globe to sustain their profits.
The process of bitcoin mining includes verifying of blockchain transactions by miners, who use powerful computing devices. These powerful computing devices consume a large amount of electricity along with excessive heat dissipation. The rapid consumption of electricity in mining also increases the detrimental effect on cryo mining on the environment.
Similarly, with every passing year, the popularity of cryptocurrencies has increased leading to oversaturation in the mining sector as a lot of people are constantly engaged in mining cryptocurrencies like bitcoin.
So, what it ultimately does is increases the mining difficulty of the entire network. The mining difficulty increases in a blockchain network when more people are engaged in mining, giving rise to the overall computational hash power.
Well, the important thing to note is that the fossil energy based mining hardware costs are incredibly high whereas the better alternatives like GPU processors are difficult to find in the market.
In such a scenario, the entire global mining industry is looking for alternative ways to make crypto mining profitable again in order to deal with the rising mining hardware and electricity costs. For instance, in China, a popular mining country, crypto miners are looking for second-hand mining equipment for mining operations.
Well, miners and numerous fintech companies around the globe are also working to develop crypto mining solutions that use alternative energy sources, i.e., solar energy, for running their mining rigs and equipment.
Pieta is also one such blockchain project that has been able to overcome the high energy consumption problem in mining operations effectively. So, you would now think what exactly does Pieta to overcome the high-cost electricity and mining hardware problem in mining? Let’s understand this.
Pieta uses green solar energy replacing the traditional energy source, i.e., electricity for crypto mining operations in order to make it more affordable and environment-friendly.
Adding to this, Pieta also uses the new X20 hashing algorithm that reduces the energy consumption up to 50% in crypto mining by keeping the mining equipment cooler while increasing the efficiency.
The X20 algorithm in Pieta coupled with the high efficient ASIC solar hardware reduces the electricity consumption by nearly half for the miners.
The new X20 hashing algorithm is Pieta also reduces the block size and block creation time, and increases the life of mining devices by keeping them cooler resulting in low power consumption.
Apart from this, Pieta also tackles the high electricity cost problem effectively by utilizing green solar energy. For such purpose, Pieta will establish the solar power farms in the African region and different other countries around the globe by investing a significant portion of ICO funding for the same purpose.
Since solar is a low-cost energy alternative, it will greatly help Pieta to overcome the high-cost problem in mining while benefiting the miners and investors.