It is no question the world of cryptocurrency mining must undergo major changes to withstand the backlash against the power it consumes on a daily basis. This is why GEAR has developed a closed-loop mining network which not only mines cryptocurrency in environmentally friendly ways but also supports the further development of renewable energy solutions.
PoW Mining is in Danger
In 2009 Bitcoin began its process of mining to secure transactions on its network and mint new coins, a process known as proof-of-work (PoW). At the time its network was so small it didn’t take a great deal of power and energy to secure transactions. Fast forward to today, and the Bitcoin network has grown exponentially to the point where securing the Bitcoin blockchain takes 72 TWh of electricity per year, higher than the output of 160 countries.
Due to the success of Bitcoin, other cryptocurrencies have come along and built networks based on these same PoW principals. This has created many more networks which add to the growing energy crisis facing PoW blockchains, where the output of energy is not only economically costly but environmentally costly as well.
Green Mining with GEAR
GEAR is the world’s first closed loop green energy and renewables investment token which uses green energy in its mining facilities to secure transactions on PoW blockchains. This provides an injection of renewable energy into the PoW mining sector from wind, solar, tidal, hydroelectric, biomass, and other sources.
At the same time, GEAR utilizes the proceeds from its green mining operations to support the growth of more efficient models of securing blockchain transactions and green energy research and development as a whole.
The Four Pillars of GEAR
GEAR stands on four main pillars which support its closed loop, self-growing network. These pillars work together to produce a flowing network which will allow for internal and natural growth of the GEAR network.
One goal of GEAR is to expand without the need for outside financing. This requires reinvestment of income back into the growth of green energy farms and data centers to compound PoW mining capabilities. Additionally, GEAR believes the future of the cryptocurrency industry lies in more efficient forms of transaction verification than traditional PoW, such as proof-of-stake (PoS). This is why the company will allocate a portion of its mining proceeds to supporting the growth of these more energy efficient tokens.
To incentivize token holders to reinvest proceeds, GEAR Earn will pay out a portion of the company’s annual income to token holders, providing an ethically responsible and renewable return on their capital investment. Concurrently, GEAR will distribute cryptocurrency into public markets to be made available for secondary market transactions, giving participants in these markets the peace of mind their cryptocurrency has been minted in an ethically sustainable way.
GEAR Capital is a venture capital fund which is set to fund initiatives and research for renewable and green energy projects with the hope of working toward a carbon neutral environment. The company will take a small portion of its mining proceeds to invest in advancements in energy conservation, fuel switching, carbon capture, battery chemistry, and more.
A reserve amount of funds are set to finance network upkeep, operations, and address any unforeseen circumstances should they arise. This will allow for the continued development and improvement of the GEAR network without impeding on other parts of the company.
It’s not too late
Some question whether cryptocurrencies are already too entrenched in vast amounts of energy consumption that it is too late to turn the clock back. GEAR sees this challenge as something to face head-on with green mining and investing in better, more energy efficient solutions across the industry and beyond.
Dan is a freelance cryptocurrency and blockchain content writer. He has written content for startups, ICOs, financial planners, venture capital firms, and more. Previously he founded an e-commerce company that grew to $1 million in revenue and profitability in less than 3 years. Dan has a degree in Economics and Finance from Bentley University.