Cryptocurrency mining is a process that allows someone to generate new cryptos into a network. The person does this by solving a set of mathematical problems. Since the advent of cryptocurrency, mining has been an integral part of the industry and has helped keep the crypto market active. Irrespective of the enormous importance of mining to the crypto community, it has faced numerous criticisms, especially from environmentalists and government agencies. Therefore, it has become imperative to solve these problems of crypto mining and get everyone back on the same page. GoMining Company promises to have the solution that will bring to an end the problems of traditional mining processes.
The Chinese government recently started to clamp down on cryptocurrency miners, and that move has harmed the crypto market in general. Many environmentalists have come out to say that the cryptocurrency mining process is not sustainable for our planet. Therefore, if there is ever a chance to advocate for mainstream adoption of crypto, the problem facing mining needs to be solved first. Before we consider the crypto mining solutions presented by GoMining, let’s take a look at the system itself.
The GoMining Company
GoMining platform is a professional mining entity created during the crypto boom of 2017 by a handful of international investors. As of the time of writing this article, the GoMining Company has data centers across the globe. It also has its own exclusive power consumption infrastructure of about 200 megawatts. Most of the profits generated by the Company go into the creation of new data centers across the world. Another significant portion of the revenue is used to buy equipment and improve the upgrade of its infrastructures.
According to the GoMining whitepaper, the project is committed to activities that are in line with sustainable development goals. GoMining receives half of its electricity for the operation of the data centers from renewable energy sources. In the long term, the company plans to utilize only sustainable energy consumption to minimize environmental harm.
The Problems of Traditional Crypto Mining
Although there are lots of issues with crypto mining, such as crypto-mining malware and the risk of cryptojacking, there are two major problems with the process.
High Energy consumption
To successfully mine a cryptocurrency, miners have to combine several of Application-Specific Integrated Circuits (ASICs). This requires high power output to execute. According to a CBS News report, bitcoin mining alone consumes more power than about 150 countries on the planet. To make matters worse, most of their energy source is not environmentally friendly.
The high cost of mining hardware and energy
Those Application-Specific Integrated Circuits don’t come cheap, and hundreds of them are required for a mining process. Also, the high energy consumption doesn’t come cheap either. Therefore, the traditional crypto mining process is high capital-intensive.
The GoMining Token (GMT) and its Solutions
The GoMining token (GMT) was created as a solution to the problems of traditional mining. Unlike other crypto tokens, every GMT token is backed by a real and continuously growing computing power measured in “TH/s” and through the SHA-256 protocol. Instead of purchasing ASICs for mining, users can buy the GMT token, thus acquiring the computing power of the GoMining device fleet. This device fleet is already involved in bitcoin mining, and it generates daily income for token holders. The income is generated from the pool that the computing power is directed.
These GMT tokens are issued through a smart contract either of Ethereum or Binance Smart Chain. The initial number of GMT in circulation was 100 million, which is backed by 100,000 TH/s on the SHA-256 protocol. The supply capacity of the token constantly grows. Every week the team introduces new capacities and issues tokens proportionally to these capacities. After the additional issue, the team burns 20%-90% of newly issued tokens and redistributes the released capacity between other tokens. As a result, the supply capacity of a token increases which results in income growth.
This causes an increase in the mining income from each GMT token. Aside from its important role in leading an environmentally friendly crypto mining process, the GMT token is a good source of earning passive income for holders. Over the next few years, the company plans to increase the supply capacity of GMT several times. The big aim for Gomining is to provide 20% of the world’s BTC mining.