In October 2008, when the financial crisis was in full swing, an anonymous individual or group under the pseudonym ‘Satoshi Nakamoto’ published a white paper on Bitcoin, a “peer-to-peer electronic cash system” that ended up disrupting the financial system and sparked the creation of an entirely new industry: crypto mining.

Considering that many people view Bitcoin as a commodity, similar to gold, it only makes sense that the process of generating new Bitcoins would become referred to as ‘mining’. In a way, mining is an incentive mechanism to reach consensus in the verification of transactions in a decentralized network. While crypto mining originated from Bitcoin, the system has spread quite widely across the blockchain space.

More than a decade later, Bitcoin keeps intriguing individuals and organizations all around the world, and has become one of the most popular financial assets. Nevertheless, criticism and doubts around Bitcoin and crypto mining remain. The most popular cryptocurrency is also frequently brought to the spotlight around its potential affiliations to money laundering, financing of terrorism and cybercrime, as well as the energy the mining process of its cryptocurrency consumes. 

According to the Bitcoin Electricity Consumption Index of the University of Cambridge, the annual consumption of Bitcoin is currently estimated to amount to nearly 140 TWh. The United Arab Emirates (113 TWh) or the Netherlands (109 TWh) had a lower annual energy consumption than Bitcoin in 2020. Moreover, news outlets like The Guardian or BBC News reported on Bitcoin exceeding the energy consumption of further countries, including Ireland and Argentina. Within the last year, headlines like “Bitcoin Uses More Electricity Than Many Countries” in the New York Times or “Bitcoin’s growing energy problem: ‘It’s a dirty currency’” in the Financial Times were in no short supply.

Among the most popular quotes on the topic is Bill Gates’ statement in the New York Times in March 2021: “Bitcoin uses more electricity per transaction than any other method known to mankind, and so it’s not a great climate thing.” Not that this statement or the awareness of the issue would have prevented Microsoft from launching ION, a decentralized digital identity system, to run on the Bitcoin network.

But why is Bitcoin mining so energy intensive anyways?

At the heart of Bitcoin’s energy-intensive model is the Proof-of-Work (PoW) protocol. Bitcoin mining, the process of creating new Bitcoins using PoW, requires solving complex cryptographic equations to receive the rewards associated with the creation of the next block in the blockchain. PoW is carried out by computers, known as ‘miners’. 

In the early days, a simple computer was enough to mine Bitcoin. However, the difficulty of the mining algorithm increased as the network grew larger and more people started competing to earn the next block’s rewards. On average, it takes about 10 minutes to solve such an equation and to mine a new block. Today, Bitcoin mining has become a costly and elaborate endeavour – accessible only to large investors that can support powerful supercomputers – at the cost of local communities.

It’s only sensible that miners are beefing up their machines to increase their chances. In fact, the sector became so competitive that Intel created dedicated chips and specialized manufacturers for mining servers like Bitmain were established. With up to 3,250 Watts indicated by manufacturers, the power consumption of such devices averages 28,470 kWh per year if operated continuously. In comparison, the annual consumption of a freezer is estimated between 200 and 500 kWh per year. 

Additionally, operating a single mining machine is hardly the way to succeed. The biggest Bitcoin miners have fleets of hundreds of machines in so-called ‘mining farms’, carefully maintained and constantly ventilated, to prevent them from overheating. Some of the largest, like Northern Data in Texas, have an energy consumption of 1 GWh per year, the equivalent of the energy produced by about 3.1 million photovoltaic (solar) panels. 

In critical times where humanity is facing serious global challenges in relation to climate change and the collapse of biodiversity, we must rethink the basics of how to decentralize our world. 

Are there more energy-conscious solutions?

Proof-of-Stake (PoS) mechanisms have proven to be less energy intensive than PoW. With PoS, miners lock up (‘stake’) a blockchain’s cryptocurrency on escrow accounts to be granted mining rights. In exchange for this participation, miners receive an interest proportional to their stake as reward. 

PoS-based blockchains are faster and much more energy efficient than PoW-based blockchains. However, the implementation of a PoS protocol poses its own challenges. For example, it is known for incentivizing hoarding, rather than utilization, and driving centralization. The mining industry is attempting to shift perceptions and move away from its climate-polluting, power-hungry image by powering large mining activities with renewable energies or by offsetting their emissions with carbon credits.

While this might sound great at first, it does not resolve the underlying issue of incredibly high energy consumption. Should we really allocate relatively scarce renewable energy resources to such energy-intensive endeavours? Or should we rather look for more efficient alternatives – considering we have all the technology to create more energy-efficient models from scratch – and then support what energy consumption remains with renewable energy? 

ThreeFold Farming offers a greener paradigm

ThreeFold Farming is a decentralized, energy-efficient and meaningful alternative to mining. ThreeFold Tokens (TFT) are minted whenever new Internet capacity in terms of compute, storage or network is added to the ThreeFold Grid by connecting computers, known as 3Nodes. 

By contributing decentralized Internet capacity to the ThreeFold Grid, independent people and organizations called ‘farmers’ earn TFT in return – based on a Proof-of-Capacity  (PoC) algorithm. PoC is autonomously carried out by ThreeFold’s extremely efficient operating system. First, Zero-OS scans the computer’s resources. Then the operating system registers the computing power and Internet storage on the ThreeFold Blockchain, making the resources available to the entire network – thereby creating a decentralized model for Internet capacity provisioning. The energy consumption of a 3Node can vary, depending on the amount of Compute Units (CUs) and Storage Units (SUs) it holds. “The average consumption for a Titan 3Node is around 26.71 KwH per hour”, says ThreeFold’s Alexandre Hannelas. 

Farming supports the realization of an open-source peer-to-peer Internet free from centralized servers and authorities. Similarly to Bitcoin, the management of transactions and the issuing of TFT is carried out collectively by the network to create a decentralized Internet economy. In a way, what Bitcoin did to money, ThreeFold does to the Internet – while using much less energy. 

“By using blockchain for what it’s good at and other pioneering technologies, such as peer-to-peer networking, to complement it, we built the most efficient Internet infrastructure in the world, and by far.” – Kristof de Spiegeleer.

Developing sustainable solutions for our planet is essential to ThreeFold’s ethos which puts our planet and people first. A famous quote, we love and frequently refer to at ThreeFold, is Albert Einstein’s “We cannot solve our problems with the same thinking we used when we create them.”

Our planet needs regenerative solutions at a large scale, and ThreeFold aims to deliver on our promise providing better solutions for our planet and people through our technology. Based on the ThreeFold Grid’s average energy consumption, we’re planting trees with our partner Take Action Global to offset the Grid’s carbon emissions three times in the form of Voluntary Carbon Credits (VCC). Our VCC system was implemented in the PoC algorithm, so every 3Node mints additional TFT to offset its own carbon emissions based on the power utilization of the individual 3Node per month. The process is fully automated and executed by the ThreeFold Blockchain.

ThreeFold’s global community of farmers is on a mission to regenerate our planet through the planet-positive ThreeFold Farming which supports tree planting and other impact initiatives by default. We’re on track to provide a planet-positive Internet and support our partners in their initiatives in fields like climate education, climate action and economic inclusion worldwide.

Farming is about so much more than crypto mining. It’s about building a better Internet and shaping the world we want to live in. Together with a community of like-minded people, we’re taking action for a better world.

If not us, who? If not now, when?

• Join the global ThreeFold movement.
• Start farming today and become a part of the new Internet while regenerating the planet.

An example to illustrate this challenge is the fact that up to 60% of Ethereum (the world’s second most-popular blockchain) nodes run on centralized cloud providers and 25% of them run on Amazon Web Services (AWS).

While the topic is being addressed, it isn’t being solved at scale. The good news is that ThreeFold can play a large part in solving it.

Why should blockchains make this move?

The blockchain movement, as mentioned, is very heavily tied to the movement around decentralization. Cryptocurrencies represent the move away from centralized banks as the authorities and gatekeepers around money – just as ThreeFold and similar projects represent the move away from centralized clouds as the authorities and gatekeepers around data. The thing is, if blockchains are to rely on centralized cloud for hosting, they aren’t truly embodying decentralization.

Understandably, many blockchains have chosen centralized cloud providers in the past because there wasn’t much of an alternative. But now, the Decentralized Cloud (DeCloud) movement has changed all of that.

Here is how some specific audiences can benefit:

For Node Operators

Any full node or validator node can run on ThreeFold’s Peer-to-Peer (P2P) Cloud, making that particular Blockchain even more community-owned, and more decentralized from an IT/cloud level. Any node operator can choose to run their nodes from any farmer location on the ThreeFold Grid, totally peer-to-peer between the chosen farmer and the node operator. The deployed workloads are computed in a P2P manner, no middle party involved.

For dApp Developers

Web3/Blockchain developers can use ThreeFold’s P2P Cloud - offering both compute and storage - to build and power their applications in a truly decentralized cloud infrastructure, both blockchain-native and cloud-native. A strong advantage here is that developers have the ability to leverage Kubernetes, Docker, S3, and other cloud-native tools (all compatible / integrated with the ThreeFold) to power and optimize their data processing capabilities, as well as the overall functionality of their dApps. But the sweet spot is that it is deployed on a decentralized IT infrastructure, close to where users would be located.

But why choose ThreeFold over other DeCloud projects?

There may be bigger names in the space, but ThreeFold’s technology and offerings are much more comprehensive than the rest. ThreeFold provides decentralized storage, compute, and network all under one roof (whereas most other projects offer only one of the three) and as mentioned, we have created an environment for developers which is highly-compatible to the developer tools and solutions they use today. Further, ThreeFold is building new infrastructure from the ground up (rather than relying on extra space in data centers) and the technology is truly peer-to-peer.

We already have a number of partners in the space who recognize these advantages.

Any blockchain protocol or dApp, whether operating DeFi, NFTs, DEXs, etc, will at some point need to leverage the power of the decentralized cloud and escape from centralized cloud providers. We’re seeing some of that adoption from a decentralized storage side with IPFS, which has been adopted by many dApps, and others – but as a developer, you will have to think twice, not just about where your/your users’ data is being stored, but also about how (and where) your app is computed and powered.

Participate now in our quest to fully decentralize the Internet by becoming a node on our grid or buying TFT.

Find out more about Blockheating here: https://blockheating.com/

Find out more about our partners here: https://threefold.io/partners

Lack of internet access isn’t always just an availability or affordability problem. Today’s internet can be limited or even shut down at any point, by the right people. Take a quick look at NetBlocks.org, an organization that reports on global internet disruptions or outages. Typically governments are enacting these measures during times of unrest or protest or  important political moments. Even in the United States, the Executive Branch of the government has the power to shut down the internet in a case of a national emergency.

Cutting the internet or restricting certain services based on region (a common practice as well) is not only not right, it’s dangerous. People rely on the internet for information and communication and no government or entity should have the ability to shut the internet down at their discretion.

The ThreeFold Solution: Fair & Neutral Internet for All

In 2016, the United Nations declared internet access to be a human right, yet today if you are reading this post, you are privileged. All humans deserve access to the internet and ThreeFold has the solution.

With the ThreeFold model, nodes can be set up anywhere in the world where an existing internet connection and electricity are present. By putting physical infrastructure at the edge (close to users), greater levels of access can be reached.

Further, the ThreeFold Grid cannot be shut down or manipulated. It is a neutral internet owned by the people, where autonomous technology heals and runs itself and requires minimal human intervention.

Today we are working with partners in the clean energy and network / connectivity to build the solutions that are needed to provide fair and uninterrupted internet access with all corners of the world.

Of course we will need new safe, secure, and private solutions for people to collaborate online. Many of these are already live and deployable via ThreeFold Now Community Solutions. We are working with partners in the education space as well to build toolsets for students to enrich their lives.

We need a more inclusive internet, and that is what we are building.

Everything on the internet – websites, apps, photos, videos, etc – uses up capacity and is stored in huge data centers owned by big companies, mainly in North America, Europe, and some in Asia. In our solution, centralized data centers are replaced with a grid of “nodes” distributed around the world.

These nodes are owned by ThreeFold Farmers – but only the physical hardware – the data inside of the nodes belongs to the people or organizations who put it there. So, “farmers” plug in hardware and start to create capacity that can be used by people.

Farmers come in all shapes and sizes. Some farmers run small data centers while others simply run a node out of their living room.

When Farmers connect active hardware (add capacity) to the ThreeFold Grid, ThreeFold Tokens are created. Farmers can then sell those tokens to people who want to use capacity (e.g. a developer that wants to build or host a website, or a person who wants to store some photos). More on tokens down below.

Seems quite lofty. How will you build it?

It’s true that rebuilding the internet is not so simple. But a lot of infrastructure has already been built and the technology is quite advanced. Over the past 2+ years (as of May 2020), independent ThreeFold Farmers have already plugged in more than 40,000,000 GigaBytes worth of storage and 15,000 CPU Cores across 21+ countries. That might not mean a lot to non-technical folks but it is quite a significant amount.

21+ countries? What happened to equality?

As far along as we are, we still have work to do. One of our biggest goals in the near future is to expand the grid to Africa, South America, and parts of Asia where currently the Internet is too expensive or not available. Currently, we farming is incentivized around these key geographies.

And what do you mean by peer-to-peer?

Peer-to-peer means no middlemen – direct exchange of information and/or value between equal participants. Peer-to-peer means decentralization – breaking away from pyramid-based systems, greed-based systems – and putting people back in the center of their own (digital) lives.

So how can I access / use your internet today? What can I do on it?

By June, some of the first experiences will be live. This includes file storage and communication tools and a virtual browser, all with the advantages of being more sustainable for our planet and with full control of your own data. And over time, more and more experiences will come to this internet. We’ll be updating here and on our communication platforms as they come. But don’t worry, as a user it doesn’t change much – no coding required. :)

Will [enter website or app here] be available on your internet?

There are some tremendous reasons for a website or app to use our internet, but that will really be up to the website or the app. In the end, we are providing a responsible solution for responsible people and organizations. We would love to host anybody who believes in what we are doing!

How are you making sure it’s safe?

Hacking has become a part of life and is almost impossible to avoid in the current systems – they are too complex and require too many people to operate. This results in less security which results in lots of security breaches. We took a look at the existing Internet (seven layers) and simplified it down to three layers. By simplifying the architecture and instead creating technology that is self-driving & self-healing, we removed the human requirement and therefore vastly minimized the possibility for hacking or human error. Then we also developed a storage algorithm which makes it such that if some of the information gets lost or stolen (somehow) or if some hardware goes down, it is all retrievable. Long story short, we flipped the existing system on its head.

What about the data ownership part?

That has a bit to do with the security as well. Since you own your data, you decide who gets access. Which means your data isn’t just out “there” for the taking. Basically, we put you at the center of your digital life, where the applications and experiences you use serve you, not the other way around.

And how is it better for the planet?

There are a few reasons for us being more sustainable. Data centers are super unsustainable, so the simple (but incomplete) answer is “no more huge data centers.” But if you want more detail:

• We use up to 3x less hardware for the same output, and using hardware at least 2x longer while maintaining good performance
• Having capacity everywhere, local to where users are – this reduces network requirements (and can even improve security)
• Using new algorithms (e.g. the one mentioned above for storage) which have dramatic efficiency improvement
• Re-using hardware where possible – let’s not throw away

How much will it cost?

In the end we want to provide sustainable access to the internet and all of its solutions for less than a dollar per month per person but for now the cost will depend on what you choose to do. Certain experiences will cost money. Storing photos or videos, for example. But all at a fair price.

Speaking of money – so what’s up with the ThreeFold Token?

As we mentioned above, tokens are generated when ThreeFold Farmers adds capacity to the ThreeFold Grid.

Essentially, the ThreeFold Token is the medium of exchange on the new internet. So, if a developer wants to build something (e.g. a website or an app) or a user wants to store something (e.g. photos), he/she/they use(s) ThreeFold Tokens.

Need more answers?

We hope that helps explains things. Obviously there is a whole wiki to dive in to. If you don’t find what you’re looking for, please ask us on our forum!

Photo by Nong Vang on Unsplash.

To find out more about how you can become a farmer, please visit ThreeFold’s website www.threefold.io. Our wiki or register to for first access to our next batch of 3Node here: https://pre-register.threefold.io/. We are currently collecting interest for all types of nodes that anyone can host in their home, office, or anywhere else with a power outlet and internet connection.