Blockchain mines look nothing like copper mines. They are banks of computer that toil away at solving complex calculations. Blockchain is the digital ledger used by many cryptocurrencies such as Bitcoin. Because the computers generate heat, they could be used to warm the greenhouses to grow the tonnes of marijuana needed for Canada’s budding legal market.
Blockchain is a revolutionary way of tracking secure, indelible transactions of any sort not just cryptocurrencies. Experts say it will revolutionize businesses in every field. Manav Gupta, chief technology officer of IBM Cloud Canada, is enthusiastic:
“We view blockchain as having the potential to change all of technological interactions the same way that the internet changed communication in the nineties (Walrus magazine, Jan/Feb, 2018).”
Where the value of Bitcoins is highly speculative, the value of blockchain is solid. Unfortunately, that doesn’t stop blockchain from being caught up in a goldrush mentality. Irrational investors are madly rushing into some dodgy speculations. Convinced that anything with “blockchain” in the title is “the next big thing,” investors threw $2 billion into blockchain startups worldwide. One company saw shares rise 394 per cent by just adding “blockchain” to its name.
Blockchain can be used to secure any vital records such as medical files, business deals, legal agreements, tracing shipping containers, farm-to-market food security; even professional and academic records which are now open to fraud. Walmart and Nestle have already invested in blockchain.
Bitcoin miners loan their computers to solve the complex blockchain calculations required for each transaction. Miners are paid in Bitcoins in return. Drew Taylor has a Bitcoin mining operation in his Montreal house. He earns about $3,000 a month and pays additional costs of $200 for electricity. The computers generate a lot of heat. “But essentially it is free heat for at least one room,” he told CBC Radio’s The Current.
The amount of power used for each Bitcoin transaction is shocking high. Alex de Vries monitors the power used in Bitcoin mining. Just one transaction uses as much energy as the average B.C. household uses in 13 days. That’s 300 kilowatt-hours for each transaction. Researchers are looking for ways to reduce the power consumption.
The best place to locate Bitcoin mines is in places where the electricity is cheap. Montreal has relatively cheap hydroelectricity. Iceland has a large mine because the majority of their energy comes from geothermal and steam. Unfortunately, not all cheap energy is as green. China and India do most of the mining where the electricity is cheap but produced by burning dirty coal.
Once B.C.’s Site C dam is completed we will have lots of cheap, surplus electricity that could be put to use in blockchain mining.
Blockchain mining is comparable to copper mining because both use a lot of electricity. Highland Valley mine near Kamloops uses as much electricity as 60,000 homes, about twice what Kamloops uses.
An advantage of blockchain mining is that a secondary industry could use the waste heat. Marijuana greenhouses could use the computers as heaters so that not one kilowatt hour would be wasted. In addition, blockchain mines could be located near the dam to avoid the cost of transmitting electricity.
The digital mine would employ workers close to home in small towns in B.C. Instead of using our dam power to run LNG compressors, we could put people to work mining digital dollars and growing marijuana for Canadian’s burgeoning market.