Welcome!

Wearables Authors: Elizabeth White, Yeshim Deniz, Zakia Bouachraoui, Liz McMillan, William Schmarzo

Related Topics: @CloudExpo, Microservices Expo, Agile Computing, Wearables

@CloudExpo: Blog Post

A Quick Look at Cryptocurrencies By @Cloudwedge | @CloudExpo [#Cloud]

Cryptocurrencies and Cloud Computing

A Quick Look at Cryptocurrencies and the Cloud

Cryptocurrencies have gained traction in the past half-decade for a variety of reasons. Bitcoin has become the most popular cryptocurrency in the world due to its sudden rise in value and acceptance within the international marketplace. You might be wondering: What does cloud computing have to do with cryptocurrencies?

Cloud computing is beginning to revolutionize the cryptocurrency industry. When cryptocurrencies first began gaining popularity, amateur miners would create rigs in their basements, garages and bedrooms that consisted of computing gear that sometimes housed dozens of video cards with high performance GPU chips. These cryptocurrency mining rigs generated enormous electric bills for consumers with power companies sometimes mistaking the sudden spike in power use as a drug operation. These sets of circumstances along with other economic factors have caused bitcoin miners to rethink the way that they handle their hash workload.

Enter cloud computing

The cloud is being used more and more to handle cryptocurrency workloads. Cloudwedge has extensively covered many of the up and coming cloud cryptocurrency startups including GAW Miners, CloudHashing and ZeusHash. Since cryptocurrency is created using cryptographic techniques, these companies have harnessed the power of the cloud to sell mining contracts to customers. The customers pay upfront for the hashing power and the cloud takes care of the rest. Clients will receive their newly minted cryptocurrenies in which they will be able to buy, sell or exchange at a time of their choosing.

How Does it Work?

Cryptocurrency mining is utilizes application specific integrated circuit (ASIC) technology. ASIC was specifically created to solve hashes and mine bitcoins. Due to the increasing difficulty of solving hashes it is now feasible for miners to cooperate and form groups known as mining pools. A mining pool is where miners cooperate and pool together their resources. Profits are then distributed based on each individual's contribution. Cloudhashing is a company that offers people a chance to join a mining pool and partake in bitcoin mining and share in the profits.

Where Are Cryptocurrency Datacenters Located?

Washington state has become the epicenter for cryptocurrency mining datacenters. Because abundant and inexpensive electricity is available, crytpocurrency miners instantly began setting up shop within the region. The computers that are used to solve hashes and mine for bitcoins require a large amount of electricity and an abundant supply of water to utilize the liquid cooling hardware technology that has recently been developed for the ASIC architecture.

Washington state provides cryptocurrency datacenter entrepreneurs with the free cooling and economic advantages that this industry needs. In March 2014, CloudHashing was reporting that it was generating 2.5 Petahashes per second with their cryptocurrency mining datacenter operation which is consequently located in Washington.

More Stories By Natalie Lerner

Natalie Lerner is a senior contributor for CloudWedge. In her spare time, Natalie enjoys exploring all things cloud and is a music enthusiast. Follow Natalie’s daily posts on Twitter: @Cloudwedge, or on Facebook.

IoT & Smart Cities Stories
The term "digital transformation" (DX) is being used by everyone for just about any company initiative that involves technology, the web, ecommerce, software, or even customer experience. While the term has certainly turned into a buzzword with a lot of hype, the transition to a more connected, digital world is real and comes with real challenges. In his opening keynote, Four Essentials To Become DX Hero Status Now, Jonathan Hoppe, Co-Founder and CTO of Total Uptime Technologies, shared that ...
Every organization is facing their own Digital Transformation as they attempt to stay ahead of the competition, or worse, just keep up. Each new opportunity, whether embracing machine learning, IoT, or a cloud migration, seems to bring new development, deployment, and management models. The results are more diverse and federated computing models than any time in our history.
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
At CloudEXPO Silicon Valley, June 24-26, 2019, Digital Transformation (DX) is a major focus with expanded DevOpsSUMMIT and FinTechEXPO programs within the DXWorldEXPO agenda. Successful transformation requires a laser focus on being data-driven and on using all the tools available that enable transformation if they plan to survive over the long term. A total of 88% of Fortune 500 companies from a generation ago are now out of business. Only 12% still survive. Similar percentages are found throug...
Dion Hinchcliffe is an internationally recognized digital expert, bestselling book author, frequent keynote speaker, analyst, futurist, and transformation expert based in Washington, DC. He is currently Chief Strategy Officer at the industry-leading digital strategy and online community solutions firm, 7Summits.
Digital Transformation is much more than a buzzword. The radical shift to digital mechanisms for almost every process is evident across all industries and verticals. This is often especially true in financial services, where the legacy environment is many times unable to keep up with the rapidly shifting demands of the consumer. The constant pressure to provide complete, omnichannel delivery of customer-facing solutions to meet both regulatory and customer demands is putting enormous pressure on...
IoT is rapidly becoming mainstream as more and more investments are made into the platforms and technology. As this movement continues to expand and gain momentum it creates a massive wall of noise that can be difficult to sift through. Unfortunately, this inevitably makes IoT less approachable for people to get started with and can hamper efforts to integrate this key technology into your own portfolio. There are so many connected products already in place today with many hundreds more on the h...
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Charles Araujo is an industry analyst, internationally recognized authority on the Digital Enterprise and author of The Quantum Age of IT: Why Everything You Know About IT is About to Change. As Principal Analyst with Intellyx, he writes, speaks and advises organizations on how to navigate through this time of disruption. He is also the founder of The Institute for Digital Transformation and a sought after keynote speaker. He has been a regular contributor to both InformationWeek and CIO Insight...