Search Results (54)

This study explores integrating Bitcoin mining with lignocellulosic biorefineries to create an additional revenue stream. Profits from mining can help offset internal costs, reduce business expenses, or lower consumer prices. Using sensitivity analysis and Monte Carlo simulations, this study identifies key profitability drivers, such as electricity costs, hardware expenses, starting year, and operational time. Time emerged as an extremely sensitive factor and showed that delaying mining operations significantly raised production costs and the probability of profitable outcomes. In contrast, longer mining durations had a smaller yet sizable impact. Hardware costs, computational efficiency, and electricity prices also strongly influenced the outcomes. The majority of simulated events showed a loss. Moreover, the model showed that the marginal profitability of mining decreases over time. Nonetheless, the model demonstrated that under favourable conditions, it is possible to integrate Bitcoin mining into biorefineries and other productive ventures, thereby allowing for cost recovery using Bitcoin profits. For a biorefinery to mine Bitcoin and maximise cost recovery, it must start early, access low electricity prices, and preserve hardware capital characterised by low expenditure and high revenues. Finally, a discussion about the opportunities, risks, and regulations is highlighted. Full article

The modern electric power-distribution grid is increasingly integrating various components, including distributed sources of renewable energy, electric vehicles (EVs), and Bitcoin-mining operations. This shift signals a transformation in energy management and consumption. The growing presence of solar and wind energy contributes to a more diversified and sustainable energy mix, while the incorporation of EVs advances the pursuit of sustainable transportation. However, the addition of Bitcoin-mining operations introduces new complexities, raising concerns over energy consumption and grid stability. To address these challenges, this study conducted 24-h load-flow analyses on a power system that integrates intermittent renewable sources, Bitcoin-mining farms, and EVs, considering the variability in power demand. The analysis examined changes in bus voltage and power factor throughout the day using a Matlab/Simulink 2016b program. Simulation results indicate that bus voltages remained relatively stable despite the fluctuations in the generation of renewable energy and load variations. However, as the penetration of distributed generation of renewable energy increased, power factors exhibited a significant decline, dropping as low as 0.59 at certain buses due to increased injection of reactive power. At 13:00, during the period of peak generation of solar energy and high EV demand, voltage levels increased by up to 1.1 p.u., while power factors deteriorated significantly. This study highlights the importance of limiting the production of reactive power from local renewable sources under high-production conditions to sustain power factor stability. The findings emphasize the importance of detecting unfavorable system conditions and implementing safeguards to ensure reliable resource management in the evolving landscape of electric power-distribution grids. Full article

Despite the many consensus algorithms being used in blockchains, proof of work (PoW) is still the most common nowadays. The state-of-the-art mining strategy for PoW-based blockchain protocols consists of including as many transactions as possible in a block to maximize the block reward. Unfortunately, this strategy maximizes the block orphaning probability too. Recently, we proposed a rational mining strategy aimed at carefully balancing the trade-off between the block reward and the risk of block orphaning. In this work, we present PROACTION, a PROfitable transACTions selectION greedy algorithm that implements such a strategy. We evaluate the algorithm both analytically and experimentally on Bitcoin by assuming a variable random percentage of winning miners adopting PROACTION. Experiments show that when executing PROACTION, miners gain higher long-term rewards than when using the state-of-the-art strategy. The gain is in the order of the block orphaning probability. This result is particularly relevant for those PoW-based blockchain protocols in which such a probability is significant. Full article

(1) Background: Cryptocurrencies have a substantial environmental impact. In particular, the mining procedure that is employed to produce and finalize the transaction is energy-intensive and generates carbon emissions. Consequently, the objective of the present investigation is to investigate the function of cryptocurrencies in a sustainable development. This research specifically investigates the function of stablecoins, a novel subject in finance and academia that has the potential to foster a sustainable business environment. (2) Methods: A bibliometric analysis was performed using the R statistical programming language together with the bibliometric tools Biblioshiny and VOSviewer to fulfill the research objective. Data were obtained from the Scopus database, and their selection was completed using the PRISMA methodology. (3) Results: The results of the current research highlight the crucial role of stablecoins in promoting an alternative decentralized financial sector, offering a unique opportunity for the market to create a more inclusive and environmentally friendly financial ecosystem. Moreover, research indicates that stablecoins might convert Ethereum into a stable currency and enhance their ecologically friendly path. (4) Conclusions: Stablecoins have become a crucial tool in the unpredictable bitcoin environment, offering stability in a tumultuous market. The research indicates that users need to acknowledge the sustainability of asset collateral, and so far, only the regulation of stablecoins is progressing in this area. Full article

Blockchain has several unique features: data integrity, security, privacy, and immutability. For this reason, it is considered one of the most promising new technologies for a wide range of applications. Initially prominent in cryptocurrencies such as Bitcoin, its applications have expanded into areas such as the Internet of Things. However, integrating blockchain into IoT systems is challenging due to the limited computing and storage capabilities of IoT devices. Efficient blockchain mining requires lightweight hash functions that balance computational complexity with resource constraints. In this study, we employed a structured methodology to evaluate hash functions for blockchain–IoT systems. Initially, a survey is conducted to identify the most commonly used hash functions in such environments. Also, this study identifies and evaluates a lightweight hash function, designated as HashLEA, for integration within blockchain-based IoT systems. Subsequently, these functions are implemented and evaluated using software coded in C and Node.js, thereby ensuring compatibility and practical applicability. Performance metrics, including software efficiency, hardware implementation, energy consumption, and security assessments, were conducted and analyzed. Ultimately, the most suitable hash functions, including HashLEA for blockchain–IoT applications, are discussed, striking a balance between computational efficiency and robust cryptographic properties. Also, the HashLEA hash function is implemented on a Raspberry Pi 4 with an ARM processor to assess its performance in a real-world blockchain–IoT environment. HashLEA successfully passes security tests, achieving a near-ideal avalanche effect, uniform hash distribution, and low standard deviation. It has been shown to demonstrate superior execution time performance, processing 100 KB messages in 0.157 ms and 10 MB messages in 15.48 ms, which represents a significant improvement in execution time over other alternatives such as Scrypt, X11, and Skein. Full article

Bitcoin, which has been used for 13 years, has a role in transactions and investments as a major cryptocurrency. However, as the number of users increases, Bitcoin faces difficulties, such as scalability for transaction throughput and energy-consumption problems due to the concentration of the mining pool. When Bitcoin first started to come out, it began to develop gradually through the mining of individuals. Nevertheless, as the price of the cryptocurrency gradually climbed, large mining corporation groups entered the mining competition with integrated circuit (IC) chips. Consequently, the substantial increase in power consumption is raising concerns regarding energy expenditure. This paper confirms that the verifiable random selection consensus protocol based on proof of work facilitates a fair and efficient system, enabling the participation of numerous individual miners in the mining competition while counteracting the monopolization of the hash rate by large mining corporations, thereby preserving the decentralization of mining. The protocol demonstrates the potential to mitigate substantial energy consumption. Moreover, it embodies features that create barriers to the adoption of high-energy-consuming application-specific integrated circuit equipment, significantly diminishing the principal factors contributing to extensive power utilization. Full article

The environmental impact of Bitcoin mining has raised severe concerns considering the expected growth of 30% by 2030. This study aimed to develop a Life Cycle Assessment model to determine the carbon dioxide equivalent emissions associated with Bitcoin mining, considering material requirements and energy demand. By applying the impact assessment method IPCC 2021 GWP (100 years), the GHG emissions associated with electricity consumption were estimated at 51.7 Mt CO₂ eq/year in 2022 and calculated by modelling real national mixes referring to the geographical area where mining takes place, allowing for the determination of the environmental impacts in a site-specific way. The estimated impacts were then adjusted to future energy projections (2030 and 2050), by modelling electricity mixes coherently with the spatial distribution of mining activities, the related national targeted goals, the increasing demand for electricity for hashrate and the capability of the systems to recover the heat generated in the mining phase. Further projections for 2030, based on two extrapolated energy consumption models, were also determined. The outcomes reveal that, in relation to the considered scenarios and their associated assumptions, breakeven points where the increase in energy consumption associated with mining nullifies the increase in the renewable energy share within the energy mix exist. The amount of amine-based sorbents hypothetically needed to capture the total CO₂ equivalent emitted directly and indirectly for Bitcoin mining reaches up to almost 12 Bt. Further developments of the present work would rely on more reliable data related to future energy projections and the geographical distribution of miners, as well as an extension of the environmental categories analyzed. The Life Cycle Assessment methodology represents a valid tool to support policies and decision makers. Full article

Despite advances in biofuel production and biomass processing technologies, biorefineries still experience commercialization issues. When costs exceed revenues, their long-term economic sustainability is threatened. Although integrated biorefineries have significant global potential due to process integration and product co-generation, it is crucial that they generate a positive net return, thereby incentivizing their continual operation. Nonetheless, research and development into new system designs and process integration are required to address current biorefinery inefficiencies. The integration of Bitcoin mining into biorefineries represents an innovative approach to diversify revenue streams and potentially offset costs, ensuring the economic viability and commercial success of biorefineries. When using bio-H₂, a total of 3904 sats/kg fuel can be obtained as opposed to 537 sats/kg fuel when using syngas. Bitcoin, whether produced onsite or not, is an accretive asset that can offset the sales price of other produced biochemicals and biomaterials, thereby making biorefineries more competitive at offering their products. Collaborations with policy makers and industry stakeholders will be essential to address regulatory challenges and develop supportive frameworks for widespread implementation. Over time, the integration of Bitcoin mining in biorefineries could transform the financial dynamics of the bio-based products market, making them more affordable and accessible whilst pushing towards sustainable development and energy transition. Full article

This study investigates the asymmetric impacts of Bitcoin prices on Bitcoin energy consumption. Two series are shown to be chaotic and non-linear using the BDS Independence test. To take into consideration this nonlinearity, we employed the QNARDL model as a traditional technique and Support Vector Machine (SVM) and eXtreme Gradient Boosting (XGBoost) as non-conventional approaches to study the link between Bitcoin energy usage and Bitcoin prices. Referring to QNARDL estimates, results show that the relationship between Bitcoin energy use and prices is asymmetric. Additionally, results demonstrate that changes in Bitcoin prices have a considerable effect, both short- and long-run, on energy consumption. As a result, any upsurge in the price of Bitcoin leads to an immediate boost in energy use. Furthermore, the short-term drop in Bitcoin values causes an increase in energy use. However, higher Bitcoin prices reduce energy use in the long run. Otherwise, every decline in Bitcoin prices leads to a long-term reduction in energy use. In addition, the performance metrics and convergence of the cost function provide evidence that the XGBoost model dominates the SVM model in terms of Bitcoin energy consumption forecasting. In addition, we analyze the effectiveness of several modeling approaches and discover that the XGBoost model (MSE: 0.52%; RMSE: 0.72 and R²: 96%) outperforms SVM (MSE: 4.89; RMSE: 2.21 and R²: 75%) in predicting. Results indicate that the forecast of Bitcoin energy consumption is more influenced by positive shocks to Bitcoin prices than negative shocks. This study gives insights into the policies that should be implemented, such as increasing the sustainable capacity, efficiency, and flexibility of mining operations, which would allow for the reduction of the negative impacts of Bitcoin price shocks on energy consumption. Full article

This research aimed to investigate the relationship between climate policy uncertainty (CPU), clean energy (ENERGY), carbon emission allowance prices (CARBON), and Bitcoin returns (BTC) for the period from August 2012 to August 2022. The empirical analysis strategies utilized in this study included the Fourier Bootstrap ARDL long-term coefficient estimator, the Fourier Granger Causality, and the Fourier Toda–Yamamoto Causality methods. Following the confirmation of cointegration among the variables, we observed a positive relationship between BTC and CARBON, a positive relationship between BTC and CPU, and a negative relationship between BTC and ENERGY. In terms of causal associations, we identified one-way causality running from CARBON to BTC, BTC to CPU, and BTC to the ENERGY variable. The study underscores the potential benefits and revenue opportunities for investors seeking diversified investment strategies in light of climate change concerns. Furthermore, it suggests actionable strategies for policymakers, such as implementing carbon taxes and educational campaigns, to foster a transition towards clean energy sources within the cryptocurrency mining sector and thereby mitigate environmental impacts. Full article

Since 2012, researchers have explored various factors influencing Bitcoin prices. Up until the end of July 2023, more than 9100 research papers on cryptocurrencies were published and indexed in the Web of Science Clarivate platform. The objective of this paper is to analyze the impact of publications on Bitcoin prices. This study aims to uncover significant themes within these research articles, focusing on cryptocurrencies in general and Bitcoin specifically. The research employs latent Dirichlet allocation to identify key topics from the unstructured abstracts. To determine the optimal number of topics, perplexity and topic coherence metrics are calculated. Additionally, the abstracts are processed using BERT-transformers and Word2Vec and their potential to predict Bitcoin prices is assessed. Based on the results, while the research helps in understanding cryptocurrencies, the potential of academic publications to influence Bitcoin prices is not significant, demonstrating a weak connection. In other words, the movements of Bitcoin prices are not influenced by the scientific writing in this specific field. The primary topics emerging from the analysis are the blockchain, market dynamics, transactions, pricing trends, network security, and the mining process. These findings suggest that future research should pay closer attention to issues like the energy demands and environmental impacts of mining, anti-money laundering measures, and behavioral aspects related to cryptocurrencies. Full article

Bitcoin, the most valuable and energy-consuming cryptocurrency, has recently been at the center of a heated debate over its environmental impact. This controversy has caught the public’s attention, prompting us to investigate the energy consumption of Bitcoin. In this paper, we have conducted a review of the literature on various aspects of Bitcoin mining, including its mechanisms, energy consumption, mining sites, and the potential for renewable energy use. Our findings reveal that the power consumption of Bitcoin is bound to increase with the continued adoption of the proof-of-work (PoW) consensus algorithm. Nonetheless, the growing availability of affordable renewable energy sources worldwide brings hope that Bitcoin mining will shift towards cleaner energy in the near future. Full article

In this study, we used a combination of AI-assisted analysis of social media discourse and collaboration with industry experts to delve into the key research needs associated with the Bitcoin mining industry. We identified primary threats, opportunities, and research questions related to the Bitcoin mining industry and its wider impacts, focusing on its energy use and environmental footprint. Our findings spotlight the industry’s move towards increasingly greater energy efficiency and an emerging commitment to renewable energy, highlighting its potential to contribute to the coming energy transition. We underscore the transformative potential of emerging applications in the Bitcoin mining sector, especially regarding demand response, grid flexibility, and methane mitigation. We suggest that targeted research on Bitcoin can serve policymakers, private sector decision-makers, research funding agencies, environmental scientists, and the Bitcoin industry itself. We propose that filling key information gaps could help clarify the risks and benefits of Bitcoin mining by encouraging collaboration among researchers, policymakers, and industry stakeholders and conducting research that provides baseline peer-reviewed evidence surrounding Bitcoin’s production and impacts. A collaborative approach could help mitigate the risks and realize the benefits of Bitcoin mining, including potentially positive and substantive contributions in alignment with the Sustainable Development Goals. Full article

Blockchains are becoming increasingly important in today’s Internet, enabling large-scale decentralized applications with strong security and transparency properties. In a blockchain system, participants maintain and update the server-side state of an application by appending data as blocks onto an immutable, distributed ledger through a consensus protocol within a peer-to-peer network. There has been a significant increase in profit in mining blocks. For instance, Bitcoin miners currently receive over USD 200,000 per mined block. An essential determinant of these rewards is the time it takes to disseminate newly mined blocks across the network. This paper addresses the challenge of optimizing mining rewards by exploring topology design in a wide-area blockchain network utilizing a Proof-of-Work consensus protocol. We show that under low block times, the geographical location of a miner critically impacts the number of successful blocks mined by the miner. We also show that a miner may improve its success rate by increasing its connectivity to the network. However, contrary to the general wisdom that a faster network is always better for a miner, we show that increasing network connectivity (e.g., by adding more neighbors) is beneficial to a miner only up to a point after which the miner’s rewards degrade. This is because when a miner improves its connectivity, it inadvertently also aids other miners in increasing their connectivity. We also present a network-level collusion attack in which a miner can increase its block success rate by becoming part of a tightly connected cluster. Here too, we observe that the mining gains obtained increase with cluster size only up to a point, and decrease thereafter. Our findings highlight that the network topology is a key variable affecting miner performance in PoW blockchains that must not be overlooked. We demonstrate our observations via detailed simulations modeled using real-world measurement data. Full article

Cryptocurrencies, like Bitcoin and Ethereum, have garnered global attention in recent years as digital alternatives to traditional fiat currencies. This paper explores the complex landscape of cryptocurrency adoption, consumer behavior, and perceptions. Beginning with the origin of cryptocurrencies and the dominance of Bitcoin with its USD 1.23 trillion market capitalization, the paper highlights popular online platforms facilitating Bitcoin trading. It also examines the varying legal statuses and regulations across different countries, with a notable divide between Eastern and Western nations, attributed to factors like wealth, risk tolerance, and government restrictions. The role of blockchain technology as the foundation of cryptocurrencies is explained, emphasizing its role in ensuring secure and transparent transactions. The paper delves into the processes involved in handling cryptocurrencies, including the blockchain, exchanges, wallets, and mining. Consumer behavior and the factors influencing cryptocurrency usage are analyzed, with a focus on speculation, algorithm trust, spending power, and demographics. Survey findings and case studies from diverse geographical areas reveal patterns of adoption and local consumer perceptions. The paper concludes by discussing the cryptocurrency market’s inherent volatility and sensitivity to regulatory changes, as well as the different types of cryptocurrencies and online exchanges shaping this evolving financial landscape. Overall, it offers insights into the complex dynamics surrounding cryptocurrency adoption and its potential impact on global finance. Full article