Hydro Mining, The Basics

Mining is the process of creating digital coins and verifying transactions, using information stored in a ‘wallet’, that use these coins. Verification of transactions is done using P2P networks and a public and private key to create a digital signature that ensures that the person is the owner of the digital currency.

Transactions using Bitcoin and other digital currencies are done over unregulated networks like Block Chain. This network collects and records all transactions done during a specific period and compiles them into ‘blocks.’ Miners then confirm these transactions and record them into a public ledger by solving complex math puzzles or equations that use powerful systems and graphics cards. This process requires huge amounts of electricity to do. For example, mining operations of BitCoin and Ethereum use up the same amount of energy as the entire country of Morocco.

Hydro Mining: What is it?

The boom in transactions using digital currency like BTC has resulted in the need for bigger electricity sources by big mining farms. Hydro mining aims to limit environmental damage by using a low-cost,  renewable energy source to power operations.

Benefits of Hydro Mining

Hydro mining is an eco-friendly power alternative especially for an industry that uses excessive amounts of power to operate. A single Ethereum transaction uses up 53 kWh, while a typical dishwasher uses up an average of 288 kWh for an entire year. Around 300,000 Ethereum transactions are done in a single day, which speaks of the unbelievably high amount of electricity needed to power these transactions. Hydro mining uses water, which is a renewable source unlike coal and fossil fuel. It is also carbon neutral, minimizing the carbon footprint that is generated by mining operations.

With more and more people undertaking transactions using digital currency, miners are using complex rigs and processors that need to be kept stable at optimum levels to perform efficiently. While conventional miners use traditional sources of electricity that could be inadequate for the growing need of a mining operation, more and more miners are opting for the more reliable and energy-efficient cooling process offered by hydro mining. Water cooling systems in hydro mining are designed to provide effective cooling at lower costs and greater reliability with greater safeguards against downtimes caused by power shutdowns.

This is crucial since miners stand to lose hundreds to thousands of dollars if operations cease for just a couple of minutes. This is a risk that some mining operations cannot stand to take.

Water-powered electricity is also one of the cheapest sources of power there is. This translates to higher savings in power costs and higher profit margins that can be passed on to consumers.

In summary, hydro mining makes sense because it is


–energy efficient


–provides enhanced performance

–offers increased savings


The process of bitcoin mining requires excessive amounts of energy that poses an environmental dilemma especially since the use of digital currency in online transactions is expected to rise. Hydro mining is an ideal alternative, if only to reduce the carbon footprint of operations and ensure that transactions run smoothly without the risk of downtime.