Jack Dorsey’s Block Bets Big on Kenyan Mining Company Gridless

Kenya seems ready to improve its Bitcoin hashrate miner like block, inc and niche venture capital firm Stillmark invest $2 million in first Gridless community venture.

Gridless will build more mining facilities near renewable energy facilities, prioritizing the electrification of the surrounding community before harnessing surplus power to secure the Bitcoin network.

Gridless makes electricity generation feasible

“Africa needs affordable electricity” indicated Gridless CEO Erik Hersman. “Our work supporting renewable energy mini-grid developers fills a gap, helping developers scale faster, become more sustainable, and serve thousands of homes.”

The company builds and operates data centers in rural areas devoid of reliable electricity, partnering with crucial energy companies like hydroelectric specialists HydroBox to launch at least three live installations, with plans to expand further in East Africa. Gridless’ partnership with HydroBox provides the power producer with 24-hour electricity to make power generation feasible.

Gridless CEO wants to harness Africa’s renewable energy potential

without a anchor tenant, generating a return on investment becomes impossible, according to Gridless. A mining facility provides a minimum base load against which power producers can plan.

Gridless can also tailor its power usage based on the needs of the community, with the possibility of introducing newer, more efficient mining computers. Mining is the process of securing the Bitcoin network by validating transactions based on specific consensus rules. Transactions are grouped into blocks. Miners must expend computing power to solve a puzzle and add transactions to the blockchain. The Bitcoin software then rewards them with new Bitcoin.

“Renewable energy is abundant on the continent. This presents excellent profit potential for both power generators and miners, as well as the ability to make a real positive impact in the communities where it is used,” Hersman said.

According to statist, 65% of Africa’s renewable energy mix in 2020 came from hydroelectric sources. Furthermore, the mainland has around 11.4 MW of solar capacity and 6,500 MW of wind capacity. Kenya leads the continent in geothermal power production after the Kenyan government recently eased regulatory burdens for the renewable energy sector.

Smaller mining facilities will improve Bitcoin security

A fundamental principle of Bitcoin miners is that they serve as a decentralized, automated clearinghouse for transactions. Only transactions validated by the clearinghouse are considered eligible to be added to the blockchain, since malformed transactions are rejected.

However, the movement of mining capacities beyond the scope of the average Joseph in the hands of large corporations has concentrated Bitcoin mining in centralized pools. The concentration will worsen as miners fight an uphill battle to remain profitable in the current bear market.

Bitfarms, Hive Blockchain, Hut 8 and Riot Blockchain, all mined 4,400 Bitcoin in the three months ending September 2022, with Riot producing the cheapest Bitcoin at $11,020 per coin. Riot operates the largest hosting and mining facility in North America and plans to To follow that domain in the first quarter of 2023.

On the other hand, projects like HydroBox can improve the security of the Bitcoin network through scattered deployments of smaller facilities while empowering African businesses with newly minted Bitcoins.

These projects can also bring previously disadvantaged communities into the global economic landscape through affordable electricity and Internet access. Payment company Strike launched a new money transfer service between the US, Ghana, Kenya and Nigeria on December 6, 2022.

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