If there’s any criticism frequently hurled at blockchain tech, it’s impact on the environment. For instance, mining Bitcoin takes up a lot of energy, and many point out that it’s simply not sustainable. But things may be taking a better turn with the Intel crypto chip.
Launched in February 2022, the crypto chip can be used for blockchain apps, such as Bitcoin mining and minting non-fungible tokens (NFTs). Is this product finally the key to a more sustainable blockchain tech?
The environmental impact of blockchain
Since its early stages and long before the launch of the Intel bitcoin mining crypto chip, many have pointed out the need to reduce the carbon footprint of blockchain tech. After all, blockchain needs a good amount of computing power. As a result, it requires a lot of energy and can impact Mother Nature in a big way.
Though mining is just one process to validate crypto transactions, Bitcoin and other leading cryptocurrencies utilize this method.
But why does mining require large amounts of power? Crypto-mining entails using high-powered hardware, making it possible to decentralize the structure. That means it prevents a smaller group of miners from taking control of an entire network. As a result, crypto can operate without an intermediary like a central bank. But maintaining such a network means using up lots of power for the hardware.
The Cambridge Bitcoin Electricity Consumption Index says Bitcoin uses 122.87 Terawatt-hours of power each year. That means using more energy than entire states like Argentina, the Netherlands, or the United Arab Emirates.
Added to that, Digiconomist says one Bitcoin block can consume over 2,000 kilowatt-hours of power. That’s equal to the power consumed by an American household in 72.2 days.
Despite the impact on Mother Nature, many are willing to or choose to look the other way. After all, the bullish traction of crypto offers a vast promise.
Intel crypto chip gaining clients early on
With the Intel crypto chip launch, the firm aims to contribute to blockchain tech while putting a premium on greener options.
Intel’s senior vice president Raja M. Koduri says the firm is mindful that some blockchains require an epic amount of power. And it goes without saying that it translates to a huge amount of energy. Koduri says their clients are looking for more scalable and sustainable ways, which is why they came up with the Intel crypto chip.
The new product will ship later through 2022, but clients have already signed up as early as now. In fact, Intel’s first customers include Argo Blockchain, BLOCK (known formerly as Square), and GRIID Infrastructure.
Intel says it has pursued decades of research into reliable crypto tech and keeping Intel mining GPU at a minimum. The firm expects its circuit tech to produce a blockchain accelerator with over “1000x better performance per watt than mainstream GPUs for SHA-256 based mining.” This is surely a welcome move for those into crypto-mining looking for a greener alternative.
The firm has formed the new Custom Compute Group to focus on the project. This team aims to build custom silicon platforms to handle clients’ workloads, including blockchain.
Though the crypto players are yet to witness the field performance of Intel’s crypto chip, many are hopeful that it will be the key to a system that’s better for the environment. After all, pushing for cleaner crypto-mining in the US is a concern being debated in Congress. And policymakers have been weighing the use of renewable power or turning to other blockchains to solve the problem.
