New York Bans Fresh Crypto Mining Projects Using PoW Protocol
On Friday, the state legislature of New York enacted a measure that would, among other things, prevent new licenses from being issued to specific fossil fuel power plants so that they might be used in Bitcoin mining. This comes as unfavorable information for those who are enthusiastic about Bitcoin and the Blockchain. The bill imposes a two-year embargo on the issuance of new licenses for cryptocurrency mining companies that confirm Blockchain transactions by using proof-of-work (PoW) authentication techniques.
In addition, the bill would cause an investigation to be carried out into the effects that mining facilities are having on the environment in the state of New York. The amended measure received approval from the Senate by a vote of 36 to 27. According to The Verge, it will soon be on the desk of Governor Kathy Hochul, who has the power to either sign it into law or reject it. It has been alleged that Hochul was given a contribution of $40,000 by the chief executive of a firm that operates a former aluminum mill that has been converted into a cryptocurrency mining operation.
The law was approved by the Assembly of the state of New York the previous month. A halt would be placed on the development of any new power-on-demand mining operations in the state that rely on carbon-based fuel. Existing crypto mining businesses that are in the process of having their permits renewed will, however, be permitted to continue operating.
Mining businesses with headquarters in New York have expressed their intent to move operations out of the state in the event that the ban is approved. According to Clark Vaccaro, interim president and chief strategy officer of industry trade organization BaSIC, the measure “is a dismal day for blockchain technology, essentially slamming the door on a budding business.” Vaccaro made these comments in response to the bill.
John Warren, CEO of institutional-grade bitcoin mining company, GEM Mining, said “The regulatory climate in New York will not only prevent them from accomplishing their goal, which is to mine carbon-based fuel proof of work, but it will also probably dissuade new renewable-based miners from conducting business with the state due to the possibility that the regulatory environment will become even more restrictive in the future.”
Mining Bitcoin (BTC) is a method that employs a significant amount of power. A recent analysis found that a single Bitcoin transaction uses around 2165 kWh of energy, which is the same amount of power that a typical home in the United States would require to power its appliances for 74 days. Every miner is frustrated by Botcoin’s proof-of-work (PoW) consensus process, which is one of the cryptocurrency’s fundamental characteristics. In order to earn a portion of the freshly minted currency, Proof-of-Work (PoW) requires users to solve difficult equations.
PoW has also been criticized for the impact it leaves on the environment, and its detractors believe that it is an inefficient and unsustainable kind of cryptography for the cosmos. According to studies, its levels of carbon emissions are comparable to those of whole countries. According to the findings of one of the studies, Bitcoin is responsible for almost 114 megatons of yearly CO2 emissions, which is roughly equivalent to the output of the Czech Republic.
Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.