In the cryptocurrency space, rewards are offered to miners for adding/ finding new blocks into the blockchain network. Despite the network difficulty, the cryptocurrencies are designed in such a way that the creation of a new block should take a fixed amount of time. For instance, the creation of a bitcoin takes approx 10 minutes. The increased network capacity and miners are more or less harmful for the entire crypto space as it will result in faster creation of blocks, which ultimately will cause inflation and drop the price of cryptocurrency because a large number of new coins will appear on the network. To avoid this, the complexity of bitcoin hash is increased along with the growth of computing power.
Let’s first understand the concept of bitcoin hashpower. In simple words, the bitcoin hash rate or hashpower is the measuring unit that is generally used to identify the amount of power required for keeping a bitcoin network in a regular functioning mode. The functionality word here refers to the amount of power that is required for block generation at a normal meantime. For instance, in a bitcoin network, this mean time for block generation is 10 minutes.
However, in past few years, the hash complexity has rapidly increased as a lot of miners have emerged in the crypto space who uses the advanced computational infrastructure to earn high mining rewards. So as the network difficulty increases, more hash power and efforts are required from miners to add/find a block into the blockchain network.
It is now clear that the mining of cryptocurrencies is costly as it requires a large amount of electricity and computational hardware. A variety of indexes such as Bitcoin Energy Consumption Index (BECI) is used to identify the energy required for mining operations. Talking about mining again, an evident issue that is currently faced by the crypto industry experts is to identify the alternative energy sources for mining operations apart from to protect the environment. It is evident that electricity used for mining requires the burning of fossil fuels, which is detrimental to environmental safety. A lot of companies are now working to deliver renewable energy based blockchain solutions for mining purpose.
Pieta is also one such upcoming blockchain-based eco-system that uses renewable solar energy along with latest X20 hashing algorithm for bitcoin mining operations. With the help of its advanced X20 hashing algorithm, Pieta is capable of reducing the energy cost of GPU or ASIC based mining by nearly 50 percent. X20 hashing algorithm also reduces the block size to 2MB and block execution time to 20 seconds facilitating speedy transactions. With the reduced block size, it might overburden the mining hardware. To tackle such issue, the latest X20 hashing algorithm used in Pieta keeps the mining hardware cooler, which provides double advantages to miners in terms of reducing electricity consumption and prolonged life of mining devices.
Adding to this, Pieta will also receive the energy for blockchain mining from its solar energy production farms, whose production data is also shared on the distributed ledger on the Pieta blockchain to increase transparency in the entire ecosystem.