The crypto industry wants to go green — but that’s easier said than done

A modern-day gold mine is tucked away in snowy Swedish Lapland. It is filled with thousands of computers instead of picks and shovels.

The mining rigs are working around the clock to find new units of the second-largest token in the world.

They have to compete with others around the world to find the answer to a complex math puzzle, which grows in difficulty as more and more computers join the network. Ensuring the security of the system is the goal.

This ethereum mining facility is run by Hive Blockchain, a firm that focuses on using clean energy to mine crypto.

The whole process uses a lot of energy and is underpinned by a proof of work. The world's biggest digital currency is also using this framework. It consumes as much energy as all the other countries.

Governments around the world are concerned. China has gone so far as to ban allcryptocurrencies.

There are 15,000 mining rigs in the mine that is located in the military town of Boden. It's bigger than a soccer pitch at 86,000 square feet.

Hive Blockchain is a Canadian firm that uses green and renewable energy to mineCryptocurrencies.

At 86,000 square feet, Hive’s Swedish mining facility is bigger than a standard soccer pitch.

Hive's Swedish operation is powered by a hydropower plant in the north of the country. The region has a surplus of cheap, renewable electricity.

In the north of Sweden, 100% of the power is either hydro power-based or wind power-based, according to an advisor at Hive.

In other words, it's not required by households in the region because of the excess energy capacity used by the miners.

The amount of power needed to run Hive has alarmed officials.

These machines, known as mining rigs, work round the clock to find new units of cryptocurrency.

The European Union should ban the use of energy in the mining of cryptocurrencies, according to the Swedish finance watchdog.

The agency said in a statement last year that they are increasing their presence in the Nordic region.

Increased use of miners threatens our ability to meet the Paris Agreement, and Sweden needs the renewable energy targeted by the producers of cryptocurrencies for the climate transition of our essential services.

The coalition of companies that are part of the Crypto Climate Accord aim to achieve net-zero emissions by the year 2030.

Kirsteen Harrison is the climate policy advisor and she says that the initiative is working on a piece of software that would be able to verify the source of energy used in mining.

She said that there was a lot of trials going on with that.

Activists say that simply decarbonizing the production of cryptocurrencies isn't enough.

The proof of work mechanism in the digital currency is being replaced by a proof of stake mechanism. It would remove the huge computational cost of verification.

A move to proof of stake would reduce energy consumption by over 99%, according to advocates. Cardano and solan operate on proof of stake networks.

It's difficult to move a coin away from proof of work.

I don't believe that there is an option to do away with proof of work, because not one single player has control of the system.

Although Hive and other firms are turning to green energy to fuel their operations, there are plenty of others who aren't yet on board with the shift to renewables.

Some people are using gas that would otherwise be flared to generate electricity for mining.

The backers of the coin hoped that the ban would make it more sustainable.

A peer-reviewed study released in February found that mining of the digital currency was dirtier in the years to come, with miners flocking to areas that use coal and other fossil fuels.

The problem is with the nature of cryptocurrencies. While there are various groups claiming to represent the industry, the network has no central authority and anyone can participate.