Intel’s New Patented Energy-Efficient Technology Could Turn Bitcoin Green

A new invention by legendary chip-maker Intel may effectively create a much-needed boost to the design of cryptocurrency Bitcoin.

On November 27 the company secured the patent for a processing system using an energy-efficient hardware that could put a significant dent in the currency’s excessive production costs.

Bitcoin’s original design has hinged on the tremendous amount of energy required to make a single unit. The cost of this energy, resulting from countless computers spending months grinding away on computations, was thought to be key to providing value.

The company has been issued a new patent that can reduce power consumption by as much as 15%, according to its filing with the United States Patent and Trademark Office, outlining a specialized processing system for mining the Secure Hash Algorithm 256.

Intel Hardwired to Compute

New Bitcoins are produced by a complex set of interactions which involve the generation of a code made of a string of numbers and figures. This code is then independently validated through the generation of a perfect match by a second computer. It’s the process of getting to that match that eats up so much power: The existing process requires computers to churn randomly through the millions of possible combinations to come up with the correct 32-bit string of code known as a nonce.

The new patent has reconfigured the need for exorbitant electricity consumption by hardwiring some of the range of options for the computations.

“Embodiments of the present disclosure employ micro-architectural optimizations including selective hardwiring certain parameters in Bitcoin mining computation,” reads Intel’s patent file.Opens a new window “The hardwiring of these parameters eliminates the need for recursive rounds of computations of these parameters.”

The new technology addresses what has been a major criticism of Bitcoin mining – tremendous energy consumption. The amount of power generation required is more than the total used in small countries, and ways to reduce the cost involved is driving technical innovation in FinTech, as well as more old-fashioned approaches to cost control.

“Some enterprising individuals have turned the large input of power consumption in their favor, seeking advantage over competition by moving to regions such as upstate New York which provide more cost effective hydroelectric power,” says Michael Lavere in Ethereum World NewsOpens a new window . Lavere notes that energy consumption and the intense criticism it has generated, especially given concerns over climate change, “is undoubtedly a feature that will have to be modified for cryptocurrency to reach mainstream.”

Value Fluctuations Hamper Currency Future

The patent was originally filed in 2016, but has come as the price of solving these Bitcoin puzzles may be endangering the entire system. Recently, Bitcoin prices have fallen to a two-year low, with many crypto-mining companies declaring bankruptcy and selling equipment.

This last year has been particularly painful: Bitcoin traded at an all-time high of just under $20,000 at the end of 2017, a figure that dwarfs its current value of just over $3,500.

“In the wake of Bitcoin’s price plummeting by more than 80% over the course of this year, crypto mining profitability has also suffered a marked decline while hashing difficulty remains up at all time highs,” said Ollie Leach in CryptovestOpens a new window , explaining that the Intel invention could be key in stemming the tide of departures from the sector.

“By increasing the efficiency of ASIC-based SHA-256 miners (SHA-256 is the hashing algorithm used to mine Bitcoin), Intel is helping to tackle the current mining deficit by minimizing mining company electrical costs which in turn should increase their profit margins,” Leach noted.

Some critics argue that the invention has come too late for Bitcoin to remain viable, hobbled by energy consumption costs.

And yet the patent also confirms that high-profile tech companies like Intel are still very interested in, and willing to, invest in the development of the blockchain sector, seeing its potential extend beyond the current struggles.

“The company’s latest patent, however, seems to focus more on what Intel is best at, which is creating high-performance semiconductor chips,” claims Bitcoin News. “The Bitcoin mining process developed by Intel shows the corporation definitely wants in on this innovative and growing industry of “SHA engines.”

The real question remains: Does it appear in time and can it restore Bitcoin to its former glory of five-digit prices?