The landscape of blockchain mining technology is changing. Discovering new blocks and recording transactions on a global ledger has always been a resource-intensive endeavor. Lately, block reward miners have started experimenting with new technologies that can lower the cost of supporting blockchain networks.
One such company is US-based Riot Blockchain (NADAQ: RIOT), which recently announced that it will soon be testing new 8-megawatt immersion cooling technology at its plant in Texas. This project is a joint venture with Enigma Digital Assets AG and Lancium, LLC.
Riot’s goal is to evaluate solutions for efficient block extraction in harsh temperature environments. The Nasdaq-listed company will deploy new liquid cooling technology for ASIC mining hardware.
The proof of concept will test Enigma’s next-generation immersion technology created to increase mining productivity alongside Lancium’s Smart Response software, which reduces energy costs. Riot has scheduled the pilot program to start in the first quarter of 2021.
“Enigma’s innovative solutions appear to offer a very significant improvement in installation cost and productivity. Lancium’s scale-up and trading expertise perfectly complements this by providing an innovative solution to provide the pilot project with optimized and low-cost electricity ”, said Michael McNamara, CEO of Lancium.
Jeff McGonegal, CEO of Riot, added, “We are pleased to announce the pilot and look forward to advancing the company’s relationship with Lancium and Enigma … When combined, the two technologies have the potential to reduce Riot’s bitcoin production costs, increase hash rates, and significantly extend the life of the company’s bitcoin mining ASICs. “
In areas of high heat and humidity like Texas, cooling ASIC mining machines with liquid immersion instead of air could provide benefits to block-reward miners operating with low profit margins. The cooling method reduces heat, dust and humidity problems. Not only does liquid cooling offer a huge reduction in noise compared to cooling fans, but immersion cooling can also increase the usable hash rate per ASIC miner by up to 50%.
During the pilot project, Lancium will supply 8 MW of electricity. The company is dedicating the initial 3MW to a current generation Enigma immersion module used by Bitmain S19-Pro ASIC miners. It will make the additional 5 MW available for Enigma’s next-generation immersion module solution, which is expected to launch in early 2021.
Riot will control the pilot project with Enigma providing the immersion containers and Lancium licensed for its Smart Response software. If successful, companies can expand the pilot project to larger scale sites.
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