Twin Benefits: A Study on the Implementation of Digital Twin in Crypto Mining Optimization

Title

Twin Benefits: A Study on the Implementation of Digital Twin in Crypto Mining Optimization

Creator

Thomas, Nidhiya Maria; Natchimuthu, N.

Description

The economic downturns at the beginning of the twenty-first century were marked by peoples distrust of financial institutions. Leveraging the demand for a decentralized financial system, Satoshi Nakamoto introduced the concept of Bitcoin, based on blockchain technology. The growth of Bitcoin attracted attention to the Bitcoin mining farms and their substantial energy consumption. According to the Cambridge Bitcoin Electricity Consumption Index, the annualized energy consumption of Bitcoin reached 145.55 TWh (terawatt hours). Bitcoin ranks 27th in global electricity consumption and 67th in global greenhouse gas emission. The production and disposal of mining hardware is also a significant environmental issue. Crypto mining is an area that is constantly striving to achieve energy optimization. Currently, the main focus for energy efficiency optimization is hardware upgradation, resorting to renewable energy, or adopting overclocking. However, these solutions often focus on the individual aspects of the problem. Farms should have a system to leverage real-time data and analytics to make data-driven decisions for optimization. Digital Twin (DT) has the ability to address these limitations and provide a data-driven approach to energy optimization in crypto mining farms. The article discusses the scope of DT implementation in crypto mining, the benefits and impact of DT implementation, the challenges and considerations with DT implementation, various computational models that can be applied for DT implementation, and the policies and regulations to encourage DT adoption in mining farms. The article delves into the potential of computational modeling approaches like Digital Twin to optimize energy consumption and promote sustainability in the blockchain landscape. The article can also initiate further discussions on how financial technology and environmental responsibility can go hand-in-hand. The Author(s), under exclusive license to Springer Nature Switzerland AG 2025.

Source

Studies in Systems, Decision and Control;Volume;608;pp.757-766

Date

01-01-2025

Publisher

Springer Science and Business Media Deutschland GmbH

Subject

Bitcoin; Blockchain; Digital twin; Mining farm; Sustainability

Coverage

Thomas N.M., Christ University, Karnataka, Bangalore, India; Natchimuthu N., Christ University, Karnataka, Bangalore, India

Rights

Restricted Access; Hardcopy may be available in the library

Relation

ISSN: 21984182;

Format

online

Language

English

Type

Book chapter

Identifier

https://doi.org/10.1007/978-3-031-96641-5_63

https://www.scopus.com/pages/publications/105020418800?origin=resultslist