China, New York Grid, United States discussed on CRYPTO 101
New York Grid and the New York Grid is not yet one hundred percent clean and so what apple for example does is it builds its own solar power plants it builds its own wind farms to generate as much as possible clean energy energy to offset the the dirty energy that its using and then for a portion of what it does it buys a renewable energy credit got it so in offset if you will from a somebody else's project solar project for example. That's generating nineteen energy to offset whatever is left that it cannot offset direction so we're real quick. Let me let me just interrupt just one sec just to clarify so it's basically like there's credits and debits and you're using this distributed ledger to just kind of track credits in debits and those those things are energy credits energy debits right is that kind of what it's like exactly and that market off credits historically has been a paper market what when you then use the blockchain to power that market what happens is you take out the central any central authority basically like a government agency or private organization to everything you think that's to do with the certification and verification of that credit. US therefore and by by generating them via a token system you start creating them storing them and trading them in ultimately burning them to generate that credit on the blockchain that means you've got suddenly was a blockchain a global system which king which is transparent which has integrity and is not subject to interference interference by anybody to cheat in effect so let me get this straight. Let's say here crypto one. We were generating one hundred rid megawatts of electricity through our microphones for some reason could we're blasting music all night unreasonable lot of electricity to offset that like here. My a studio were plugged into the grid. Maybe we would then put another farm somewhere generating solar and wind to generate one hundred megawatts to watch of clean energy to offset it and then that credit would be stored on a blockchain. We would store the hundred megawatts. We're putting through the grit it on the blockchain and then say okay. We're using net zero energy. Is that a kind of what they're doing. Yes yes and if I can just modify the example slightly please you might build a ninety megawatts solar power plant instead of a hundred and so for ninety ninety out of the hundred you've got a direct effectively offset of the dirty energy or using against the keene energy that you're creating but then for the extract struck ten megawatt you might buy a certificate from somebody else old through a token to offset that rump that's left oft because for some reason you can't build a solar power plant directly to power your building. I see okay that makes sense. I get it now so I was doing a little bit of research on this before we got a chance to speak with you and I found there's dozens of renewable energy. The and carbon emissions marketplace's out there. It sounds like this is a really hot idea. What is the industry landscape looked like and emerging market and are there enough participants Pinson this movement to really keep it going. I completely agree with you when you look under the hood so to speak what you see by our count is that there are some one hundred ninety blockchain and energy companies and almost half a billion dollars today invested in these companies now people don't know many of them because many of them have chosen not to do ice fios or similar public type capital raisings by they do everything or rather we as an industry are taking the blockchain and are experimenting with using it across number one peer to peer power trading and and micro grids payment systems number to the management of the grid as well platform applications as well as financing applications applications so the blockchain is really being experimented with across a very wide area in the energy space in one hundred ninety companies is along and I think our sense is that people are starting these companies as you all the time yeah and I also think that like we just had jack sampling on the show from tenement from Cosmos Network and they're building inner blockchain communication stuff so what I think is really cool. Is that when you have all these one hundred ninety silo. D- companies right now essentially but once once inner blockchain communication becomes really prevalent you can have all of these decentralised power grids all connected and transferring data back and forth to one another and it's you know it's GonNa. It's GonNa really change the world so let's talk a little bit more about a pizza mind and I are big fans of Bitcoin which gets a lot of flack from the people that are talking about climate change and the people that are talking about you know. It just uses too much energy so I've got a lot of stats here. I kind of want to paint a picture. What's going on. let me also give a lot of credit to the coin shares report so if you just go to medium dot com slash coin shares you can find their report and and I want to give credit to Christopher Ben Dixon who did a lottery search so so my first question to you before I get into these stats I just Kinda WanNa. Take your temperature temperature. Excuse the Pun is like what's your take on Bitcoin mine in the energy consumption that proof of work chains well. I got strong objections to criticisms off the energy footprint footprint of bitcoin mining. That's my temperature. That is awesome because I did not expect that answer. I thought you were gonNA say like fuck. bitcoin mining. It's ruining the world and stuff but I'm glad that you have a good opinion or similar opinion. I should say and I agree with him. Please explain explain what you mean. Well listen. I have problems with criticisms of the energy footprint of bitcoin mining on so many levels so first of all. Why are we picking on Bitcoin bitcoin miners. I mean what's wrong with wile aren't we picking on people using their phones say or people using their TV's or people using their air conditioning conditioning you know and at the the reason we're picking on the bitcoin miners specifically is part of the reason why like you know there seems to be a threads out there that just don't like the blockchain decentralization crowds in general general I and so you kind of attack this particular bid but meanwhile the energy footprint of phones and cars and air conditioning and building and all that a free pass. That's on one level on another level. The the solution to the a issue around bitcoin mining is really very simple. If we were powered one hundred percent by renewable-energy then there wouldn't be an issue in other words bitcoin mining would also be powered on absent with renewable energy and so there's not a problem and finally you even even if they have a problem today people like us at renewable are providing a token which they can buy and that would offset all their energy use and if I if I could just one more point on that a lot of the bitcoin mining occurs in China and China is not actually what it scenes I think from faraway China today is the number one solar power market worldwide number one wind power market worldwide number one manufacturer of solar fans number one manufacturer off off winter mine's number one electric mobility markets worldwide so the Chinese are doing all they can and you cannot say that about many other countries to shift to renewable energy but of course there's one point six million of them and it's difficult but at least they are giving it a very strong we'll go and they are also watching the energy footprint of the bitcoin nights and so. I hope I just summarize there might might issues uh on on multiple levels with criticizing bitcoin lining energy footprints that was very well said and I'll just add one more point to it. It's in any cryptocurrency minor's best interest to be as most efficient as possible so many of these bitcoin mining warehouses especially outside of China are located located in very cold climates where they don't have to pay air conditioning costs because the natural climate provides the cooling and there are also hooking up to solar and even hydro electric energy to generally secure the bitcoin chain out of like senator basically so there's a lot of and the reinvesting testing their provinces to more and more renewable energy as well so really it's one hand holding the other absolutely and if you if you if you are a bitcoin minor and and you want to do something about your energy footprint than come to renew M..