Tuesday, August 05, 2014
Bitcoin mining data centers represent new trends in data storage solutions
Cryptocurrencies, most notablyBitcoin, have gained momentum as their uses have expanded beyond peer-to-peer Internet transactions. Cryptocurrencies require users to verify and process transactions through a public ledger, but this verification process demands large amounts of computing power and electricity. This process is referred to as "Bitcoin mining." Users are compensated for their efforts in the form of Bitcoins, which can then be traded for traditional currency. As a result, more and more businesses are utilizing data centers to facilitate massive Bitcoin mining operations.
Bits for cash
One of the most recent Bitcoin mining businesses ventures was announced as a joint venture between the Bitcoin miners at Grey Matter Industries and the NextFort data center in Chandler, AZ. NextFort will supply Grey Matter Industries clients with VPN connectivity, so Bitcoin mining operations can be controlled from a distancethrough a remote console server, according to Data Center Knowledge. The NextFort data center was able to secure its deal with Grey Matter Industries by agreeing to short-term data center contracts that are more agreeable to average Bitcoin miners.
Datacenter Dynamics reports that telecom giant CenturyLink has recently secured a massive contract to serve the data center needs of Bitcoin mining company CoinTerra. The deal is notable for both its scope and size. CoinTerra currently supports about 15% of the entire Bitcoin currency, so it's no surprise the company negotiated a multi-million watt contract with CenturyLink. CenturyLink's extensive data center resources will help sustain CoinTerra's data and energy-hungry business while minimizing those costs.
Some Bitcoin companies are trending toward green data centers to minimize energy costs. An article from CoinDesk.com reveals that Seattle's HashPlex, the first data center opened specifically to support Bitcoin mining, is run almost entirely on hydropower. The article mentions that HashPlex's hydro-powered data center is up to ten times more efficient than traditional set ups.
The marriage of green technology, data centers and the Bitcoin mining industry points toward the future of how data will be consumed and managed. The need for data center solutions is already on the rise, and the popularity of Bitcoin will only generate more momentum. More success stories like HashPlex will demonstrate the natural overlap between cost-effective data management and environmentally-conscious entrepreneurism.
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