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Over the past 8 years, we have been hearing about crypto mining and how miners generate massive revenue from this venture. In 2013, the revenue generated by miners was only a mere $1 million per month. Fast forward to 2021; cryptocurrency miners are generating up to $60 million in a single day. To the average mind, this can be seen as a huge success on the part of these miners, but things aren’t always as they appear on the surface.
The revenue from crypto mining is highly dependent on the price of the mined cryptocurrency. Therefore, there might be increased profitability in crypto mining, but that’s no guarantee that mining is developing positively. For instance, let us compare the two different price surges of bitcoin and the mining profitability within this period. In December 2017, the price of Bitcoin was $18,600, and on November 9, 2021, the price of Bitcoin hit $68,000. You would expect the mining profitability to increase by approximately 4 times, right? Well, that is quite the opposite because the crypto mining profitability reduced by more than $33 million. The implication is that the profitability of crypto mining is actually getting worse. One of the major factors contributing to this reality is the issue of Bitcoin halving.
Aside from the declining profitability of crypto mining, there is an increasingly high cost of mining equipment. Today, due to the high computing power of graphic cards, miners have transitioned from CPU mining to GPU mining.
Crypto Mining Problems That DriveMining Seeks to Solve
Crypto mining has become more complex and also less accessible while its profitability has continued to decline. Miners residing in regions with low prices of electricity are already increasing their market share. This will undoubtedly lead to centralized crypto mining, which is against the fundamental premise of the vision of blockchain technology.
Another pertinent problem of cryptocurrency mining that the DriveMining technology is seeking to solve is the accessibility of the crypto mining market. DriveMining is opening the world of crypto mining to transportation companies so these companies can build mining farms with their vehicles. The DriveMiner is designed based on the FPGA-Chip technology.
By utilizing the worldwide patented technology of the company DriveMining GmbH & Co.KG, known as CIM and other mobile mining systems, DriveMining is making crypto mining more accessible.
DriveMining has different mining rigs that transportation companies can install in their electric or semi-electric vehicles. To make a good profit in cryptocurrency mining, miners must minimize their energy consumption while simultaneously maximizing their hash rate. This is exactly what DriveMining technology provides to these transportation companies by helping them mine the EnviDa token (EDAT). EnviDa is a project of DriveMining GmbH and it uses the DriveMining technology to collect and store environmental data. To mine the EnviDa token, these transportation companies have to connect environmental data collection sensors to the DriveMiner. The token uses a Proof-of-Work (PoW) mode of operation, and miners can mine it exclusively using the DriveMiner. EnviDa token is the utility token of the entire EnviDa ecosystem. The EnviDa PoW mining model is identical to that of Bitcoin.
DriveMining allows transportation companies to benefit from the cryptocurrency mining market without capital-intensive investment in additional infrastructure . The DriveMiner can be installed in a functioning vehicle, and it generates income for the transportation company. The technology is the first of its kind to be installed in both electric and semi-electric cars that have sufficient generating power and electricity storage capacity. For more information about the EnviDa project and DriveMining technology, see the whitepaper
Conclusion
With its crypto mining model, The DriveMining technology is on course to revolutionize the crypto mining market. Although the DriveMining technology is relatively new, it has been market-tested. In September 2020 in Berlin, 7 taxis and 11 Uber vehicles were equipped with DriveMiner as pilot projects and they are still in operation till date. Therefore, only time will tell the full impact of DriveMiner in opening up the crypto mining industry.
