Gridless, a Kenyan bitcoin mining company, recently revealed how it is helping local communities reduce electricity costs by using excess energy generated to mine bitcoins. The Gridless model has been hailed as potentially helping to decentralize bitcoin mining, as well as moving some of the hash power to Africa.
Using wasted energy to mine Bitcoin
Gridless, a Kenya-based crypto mining company, has said that excess electricity from mini-grid hydroelectric generators is now being used to mine bitcoin. The income generated from bitcoin mining helps reduce or subsidize the cost of electricity.
In a recently released statement, Gridless said that while mini-hydro plants generating less than 100 KW (kilowatts) are being used so far, the company’s goal is to work with larger plants that can generate 500 KW. The bitcoin mining company said:
We have been working with mini-grid hydroelectric generators in Kenya on how to use their excess capacity for Bitcoin mining, which also significantly reduces the cost of energy for the local community. Small
According to a Twitter user known as Nick H, in the Kenyan villages where the power plants are installed, the communities only use the equivalent of 10% of the capacity of the generators. This means that the power plants, which are being built to meet the future electricity needs of the respective villages, are currently wasting much of the energy that is produced.
Nick H. postulate that by “connecting some bitcoin miners to remove excess energy”, the respective Kenyan villages can reduce their energy prices by up to 90%.
Bitcoin mining decentralization
Meanwhile, in addition to helping reduce electricity costs for the respective Kenyan communities, it is said that the Gridless model, if widely adopted, could see Kenya and the African continent in general become a major hub for bitcoin mining.
“[This business model] it serves as a welcome decentralization from the overly centralized mega-site bitcoin mining that takes place today. Not only does it move some of the hashing power to Africa, but it also distributes hashing to smaller sites,” Erik Hersman, founder of Gridless, said in a blog post.
On Twitter, many users praised Gridless’s “absolutely amazing” business model, with some like Anita from Guatemala asking how this could be done in her country as well. In response, Gridless advised those interested in replicating this in their respective countries to find a “partner that likes to build small hydro and then work with them on the model so that it becomes a win-win for the producer of hydro.” energy/community/mining.”
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