Kenyan Firm Using Wasted Energy to Mine Bitcoin — Business Model Said to Potentially Help Decentralize Mining

Kenyan Firm Using Wasted Energy to Mine Bitcoin — Business Model Said to Potentially Help Decentralize Mining

A Kenyan bitcoin mining company, Gridless, recently revealed how it is helping local communities reduce electricity costs by using excess generated power to mine bitcoin. The Gridless model has been hailed because it potentially helps to decentralize bitcoin mining as well as move some hashpower to Africa. Using Wasted Energy to Mine Bitcoin

Gridless, a Kenya-based crypto mining company, has said the excess electricity from mini-grid hydro generators is now being used to mine bitcoin. The revenue generated from bitcoin mining helps to reduce or subsidize the cost of electricity.

In a recently issued statement, Gridless said while mini-hydropower plants that generate below 100 KW (kilowatts) are being used so far, the company’s objective is to work with larger plants which can generate 500 KW. The bitcoin mining company said: We’ve been working with mini-grid hydro generators in Kenya on how to use their excess capacity for Bitcoin mining, which also significantly reduces the cost of power to the local community. Small <100kW sites now, working towards 500kW soon.

According to one Twitter user known as Nick H, in Kenyan villages where the power plants are installed, the communities are only using an equivalent of 10% of the generators’ capacity. This means the power plants, which are being built to cater to the respective villages’ future electricity needs, are currently wasting much of the energy being produced.

Nick H posits that by “plugging in a few bitcoin miners to offtake the excess power,” the respective Kenyan villages can lower their power prices by as much as 90%.

Decentralizing Bitcoin Mining

Meanwhile, in addition to helping lower respective Kenyan communities’ electricity costs, it’s said that Gridless’ model — if widely adopted — could potentially see Kenya and the African continent, in general, become an important bitcoin mining hub.

“[This business model] serves as a welcome decentralization of the overly centralized mega-site bitcoin mining that goes on today. Not only does it move some hashing power to Africa, but it also further distributes hashing to smaller sites,” Erik Hersman, a founder at Gridless, said in a blog post.

On Twitter, many users praised Gridless’ “absolutely incredible” business model and some like Anita from Guatemala asked how this could also be done in her country. In response, Gridless advised those interested in replicating this in their respective countries to find a “partner who likes to build small hydro and then work with them on the model so that it becomes a win/win/win for the power producer/community/miner.”

Register your email here to get a weekly update on African news sent to your inbox:

Tags in this story bitcoin miner, Bitcoin mining, cheap electricity, Erik Hersman, Gridless, hashing power, Hashpower, Kenya

What are your thoughts on this story? Let us know what you think in the comments section below. Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route. Bitcoin Miner Cleanspark Completes Sandersville Facility Acquisition, Firm"s Hashrate Now 4.7 Exahash MINING | 1 hour ago Bitcoin Mining Difficulty Surges to an All-Time High, Network Prints 2022"s Largest Retarget Increase MINING | 1 day ago

Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleSpanish Crypto ATM Company Bitbase Eyes European and Latam Expansion Next articleJapanese Telecom Giant NTT Docomo Launches $412 Million Metaverse Unit Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItTony Hawk"s Latest NFTs to Come With Signed Physical Skateboards

Last December, the renowned professional skateboarder Tony Hawk released his “Last Trick” non-fungible token (NFT) collection via the NFT marketplace Autograph. Next week, Hawk will be auctioning the skateboards he used during his last tricks, and each of the NFTs ... read more.Today"s Top Ethereum and Bitcoin Mining Devices Continue to Rake in Profits Bitcoin ATM Operator Indicted in New York Allegedly Running Illegal Business Attracting Criminals Survey: Adoption in Argentina Grows, With 12 out of 100 Adults Having Invested in Crypto Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin