Blockchain technology is disrupting industries across the world – but with so many companies utilising the technology it can be difficult to understand them all. HIVE blockchain was previously known as Leeta Gold Corp back when it was incorporated in 1987. At that time, Leeta Gold Corp focused on mining gold. However as times have changed so has HIVE blockchain. Instead of mining for gold, the company now focuses on mining cryptocurrency.
HIVE blockchain and Genesis Mining
HIVE blockchain is the product of a partnership between Genesis Mining and Foire Group. Genesis Mining is one of the world’s leading cloud mining providers. Cloud mining is the process of soliciting crypto mining on somebody else’s hardware. This works through a company renting ‘hashing power’.
Hashing power is an essential element to the crypto mining process. It refers to the power that a device uses to run and solve different hashing algorithms. The same algorithms are the ones utilised to generate new cryptocurrencies as well as facilitate transactions. For example, Bitcoin is encoded with the SHA-256 algorithm.
This means data miners will need a device with enough hashing power to crack the 256-bit string that’s used to secure a Bitcoin transaction.
The process of mining can be very intensive on devices, often requiring high electricity costs. This is where cloud mining can be a useful option for people who wish to mine but cannot afford to pay energy charges. If they have the mining device, they can rent hashing power from a provider such as Genesis Mining. The contract will specify a fixed amount of hash power. The contract will vary dependent on the crypto being mined, the type of contract and the company selling the contract.
HIVE blockchain have purchased equipment and facilities from Genesis Mining through several agreements. The agreements led to Genesis Mining holding 30% ownership. It provides hosting and software solutions which were originally created by Genesis Mining. It now provides these as a service to Genesis.
Iceland, Sweden and Norway
The facilities purchased from Genesis Mining are located in Iceland, Sweden and Norway.
HIVE’s graphics processing unit (GPU) facilities were completed back in April 2018. They are equipped with custom Genesis A2 mining rigs – which are dubbed as the most efficient rigs for mining ETHash.
The facilities are powered entirely by hydro electricity and consume a total energy of 20.4 MW (megawatts). The Iceland facility produces mined cryptocurrency around the clock. It was chosen by HIVE because of the year-round mild temperatures which results in less energy needed to cool the facility. The electricity is provided by either geothermal or hydro resources to mitigate HIVE’s environmental footprint.
Sweden was chosen because of its political stability and the fact it’s actively exploring blockchain opportunities beyond crypto. It utilises excess green/renewable energy that allows HIVE to mitigate its environmental footprint in Sweden as well.
Finally, Norway was selected because the Norwegian government is actively looking for alternative areas to diversify country risk from fossil fuels. The Norway facility also has a cool jurisdiction with excess green/renewable energy.
What else does HIVE blockchain do?
Other than running multiple mining farms, HIVE blockchain also validates transactions on blockchain networks. Validation is an essential aspect of blockchain technology. This is because the technology is designed to be both transparent and immutable. Often, it is the data miner’s role to validate a transaction. In doing so, the miner is rewarded with the mining fee associated with a given transaction.
Validation helps ensure that the information being registered on the blockchain is legitimate and not falsified. Paired with the immutable nature of blockchain, this helps ensure the integrity of data stored on it.
HIVE validates transactions for blockchain networks and, in doing so, earns new crypto which can be used for revenue and cash flow. The HIVE website highlights how it offers shareholders exposure to the operating margins from cryptocurrency mining, plus a growing portfolio of crypto.
HIVE is listed on Toronto Stock Exchange
Interestingly, HIVE’s all-time high on the stock exchange coincided with the 2017 bull run which saw Bitcoin reach it’s own all-time high.
We do not recommend any cryptocurrency, projects or companies in particular and as such it would wise to conduct your own research.
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.