Welcome!

@CloudExpo Authors: Zakia Bouachraoui, Yeshim Deniz, Liz McMillan, Carmen Gonzalez, Elizabeth White

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.

CloudEXPO Stories
FinTech Is Now Part of the CloudEXPO New York Program. Financial enterprises in New York City, London, Singapore, and other world financial capitals are embracing a new generation of smart, automated FinTech that eliminates many cumbersome, slow, and expensive intermediate processes from their businesses. Accordingly, attendees at the upcoming 22nd CloudEXPO | DXWorldEXPO November 12-13, 2018 in New York City will find fresh new content in two new tracks called: FinTechEXPO New York Blockchain Event which will incorporate FinTech and Blockchain, as well as machine learning, artificial intelligence and deep learning in these two distinct tracks. FinTech brings efficiency as well as the ability to deliver new services and a much improved customer experience throughout the global financial services industry. FinTech is a natural fit with cloud computing, as new services are quickly develope...
David Friend is the co-founder and CEO of Wasabi, the hot cloud storage company that delivers fast, low-cost, and reliable cloud storage. Prior to Wasabi, David co-founded Carbonite, one of the world's leading cloud backup companies. A successful tech entrepreneur for more than 30 years, David got his start at ARP Instruments, a manufacturer of synthesizers for rock bands, where he worked with leading musicians of the day like Stevie Wonder, Pete Townsend of The Who, and Led Zeppelin. David has also co-founded five other companies including Computer Pictures Corporation - an early player in computer graphics, Pilot Software - a company that pioneered multidimensional databases for crunching large amounts of customer data for major retail companies, Faxnet - which became the world's largest provider of fax-to-email services, as well as Sonexis - a VoIP conferencing company.
Wasabi is the hot cloud storage company delivering low-cost, fast, and reliable cloud storage. Wasabi is 80% cheaper and 6x faster than Amazon S3, with 100% data immutability protection and no data egress fees. Created by Carbonite co-founders and cloud storage pioneers David Friend and Jeff Flowers, Wasabi is on a mission to commoditize the storage industry. Wasabi is a privately held company based in Boston, MA. Follow and connect with Wasabi on Twitter, Facebook, Instagram and the Wasabi blog.
Since their inception, Total Uptime has been delivering on their promise of unprecedented uptime to major brands as well as Fortune 500 corporations in the United States and around the world. Their Cloud network spans 17 countries and delivers the unique ability to seamlessly route Internet traffic from one site to the next when our customers need us to. It is built on the best SSAE 16 SOC 2 Type 2 and CSAE 3416 Datacenters and boasts an impressive line-up of Network and Transit Provider Redundancy. A back-end private network that spans the globe helps facilitate security and redundancy, key components for true Cloud architecture.
Ivo Lukas is the Founder/CEO for 24Notion. 24Notion is the first integrated marketing/digital PR & lifestyle agency with special emphasis on giving back to the global communities. With a broad understanding the art of non- traditional marketing, new media, communications and social influence. 24Notion ranked #12 in Corporate Philanthropy nominated by Portland Business Journal Book of List.