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Virtual Currencies to Be Mined by Using Renewable Energy

2017/10/27 21:50
Sousuke Kudou, technical writer
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Miner Garage was certified as a company invited to Kazuno City, Akita Prefecture. (source: Miner Garage)

Miner Garage Co Ltd (Shibuya-ku, Tokyo), which runs a business of mining virtual currencies such as bitcoin, announced Oct 23, 2017, that it has been certified as a company invited to Kazuno City, Akita Prefecture, Japan.

The government of Kazuno City has been inviting companies that run businesses by using renewable energy-derived clean electricity. The city has an abundance of renewable energy including geothermal, hydroelectric and wind powers, and its self-sufficiency rate of electricity exceeds 300%.

Miner Garage will start operation of "Mining Center (virtual currency processing facilities)" in mid-December 2017 by using clean electricity infrastructures in the city.

When the word "mining" is used in the context of virtual currency, it means the provision of computing power for block chain processing (decentralized account book technology), which is a base technology. The block chain is maintained by a decentralized network consisting of many nodes that carry out mining. The Mining Center is used for such an information processing.

For a mining business, it is important to secure a low-cost, stable electricity infrastructure as well as heat exhausting/cooling measures because a large amount of data is processed. In addition to the abundance of renewable energy including geothermal, hydroelectric and wind powers, the average yearly temperature of Kazuno City is low, probably contributing to improving the heat exhausting/cooling effects to deal with heat generated by computers for mining.

At the Mining Center, 600 computers will be installed at first, and they are expected to realize a mining business worth about ¥300 million (approx US$2.63 million) per year by dealing with about 10 kinds of virtual currencies such as bitcoin. Moreover, Miner Garage expects to promote local employment and train block chain engineers. The company is currently negotiating with Tohoku-Electric Power Co Inc about specific methods to procure renewable energy.