Tech Tent: Green Bitcoin And Innovative Engines
Tech Tent: Green Bitcoin and Innovative Engines
A novel technology is eager to demonstrate that it will not destroy the planet. Meanwhile, a technology company founded more than a century ago wants to demonstrate that it can profit from big data without harming the environment.
This week's Tech Tent examines whether Bitcoin is going green and whether Rolls Royce's jet engine business can continue to innovate.
Green Bitcoin and Cryptocurrency
The fundamental tenet of Bitcoin and other cryptocurrencies is that they are decentralized, with no central authority.
However, this week, a group of North American Bitcoin miners decided to seize control, with the encouragement of crypto enthusiast Elon Musk.
To be clear, the members of the self-appointed Bitcoin Mining Council decided to act in response to the cryptocurrency's major image problem: its energy consumption.
As Tech Tent previously reported, the process of creating new coins and recording transactions consumes the equivalent of a country the size of Argentina's annual electricity consumption.
China and Iran have taken steps to prohibit cryptocurrency mining, which has contributed to the recent wild swings in the Bitcoin price.
According to Jaime Leverton, CEO of Hut 8 Mining, one of the Bitcoin Mining Council's members, the goal is to "counter the noise and some of the misinformation that's coming at the Bitcoin mining industry."
She asserts that they want to "shape the narrative around the cryptocurrency industry's energy consumption" in order to allay concerns about the industry's environmental stewardship.
She maintains that Bitcoin mining equipment - essentially computers packed with specialized chips - is becoming significantly more efficient, citing a study indicating that 39% of the energy used in mining is renewable.
However, North America accounts for a negligible portion of mining, with the majority occurring in China and utilizing electricity generated by coal-fired power plants.
Even if China prohibits mining, Reuters reports that many miners are considering relocating to oil-rich Kazakhstan, which has an abundance of cheap, non-renewable energy.
Frances Coppola, a long-time critic of cryptocurrencies, acknowledges that North American miners are increasingly concerned about the environmental impact of their operations. However, she points out that even a more environmentally friendly Bitcoin presents a slew of issues.
"Because Bitcoin is an add-on to existing financial systems, it actually increases emissions - it will increase emissions simply by virtue of its existence. Additionally, there are threats such as ransomware - criminals use Bitcoin to make ransomware demands "'She stated.
While this new technology grapples with its climate impact, a much older industry - air travel - has been under pressure for years to reduce its carbon footprint. Additionally, the pandemic's effects have had a devastating effect on the industry's finances.
Innovative Engines
However, on a visit to Rolls Royce, founded at the turn of the twentieth century, we discovered a workforce determined to innovate its way out of trouble.
At its Derby plant, a massive new engine test facility opened this week, dedicated to the company's new UltraFan engine, which the company claims will "redefine sustainable air travel" – though production will not begin until the end of the decade.
Elsewhere, new technology – from snake robots that enable keyhole engine surgery to augmented reality training applications that eliminate the need for airline engineers to travel to Derby to maintain their skills – is assisting in cost savings.
However, data is critical to ensuring a sustainable future for both the environment and Rolls Royce's finances. Nowadays, every engine sold is equipped with sensors that are constantly transmitting data to Derby for analysis.
Stuart Hughes, the company's chief digital officer, says collecting this data is critical if engines are to remain in the air rather than in the repair shop for as long as possible.
"Some of our engines, when they are removed from an aircraft, can take up to 200 days to repair," he explains.
"We use that data to minimize the amount of time an airline is without an engine - data is critical."
In Conclusion
Two diametrically opposed technologies, cryptocurrency and aerospace, are attempting to adapt to a rapidly changing world.
However, what is fascinating is how investors value them differently.
Rolls Royce still employs more than 40,000 people despite significant workforce reductions, but the market values the company at approximately $13 billion (£9.2 billion).
In comparison, the cryptocurrency exchange Coinbase – a relative newcomer to the stock market – is valued at more than $50 billion.
Nonetheless, as recent weeks have demonstrated, markets can change their minds very quickly. It is entirely possible that the engine manufacturer will be worth more than the cryptocurrency exchange in a year.
Courses and Certification
Cryptocurrency Course and Certificate
Aerospace Engineering Course and Certificate
Forex Trading Course and Certificate
Ethereum Course and Certificate
Bitcoin Course and Certificate
