Crypto mining refers to a process by which new units of existing crypto-currencies are entered into circulation. This process "mines" different cryptocurrencies like Bitcoin, decentralized digital currencies based on a technology called Blockchain.
This so-called "mining" uses sophisticated hardware to solve a highly complex computational math problem. The computer which can find the solution first receives the next block of cryptocurrency, and the same process continues.
Even though mining cryptocurrencies is a very precise, costly process with less chance of success, it has a magnetic appeal. Many investors still prefer it because, by mining, they can earn crypto-currency without paying for it.
This is because the miners are rewarded with crypto tokens like Bitcoin for completing some blocks of verified transactions, which are added to the Blockchain. This incentive motivates investors to assist in the primary purpose of mining which is to legitimize, monitor, and ensure the validity of crypto transactions.
Mohawk Council of Kahnawake (MCK) first showed interest in crypto-mining. However, the idea was brought to the MCK by a company called Pow.re, a well-positioned organization in the crypto industry and will not require any community funds.
The MCK has legalized its creation called Kahnawake Blockchain Technologies to apply for additional electricity from Hydro Quebec to explore crypto-mining scopes. This will ultimately help in the development of the council's financial portfolio.
Attaining extra power is a necessary step as the process of mining is energy intensive. With the increasing difficulty of mining Bitcoins, it is no longer possible to mine them using a personal computer.
When there is more computing power collectively working on mining for crypto tokens, the difficulty level of mining increases to keep block production at a stable rate.
The chief of the MCK, Mike Delisle, claims that with zero investment and an opportunity to create a new industry within Kahnawake, it is exhilarating for revenue generation. There will be a fixed lease, and Kahnawake will receive a percentage of the Bitcoin mined.
Also, the energy available from Hydro Quebec fits with the vision of Pow.re, which is to follow environmentally-conscious crypto-mining and the use of renewable energy.
Pow.re's local spokesman has further added that there will be a very minimal financial risk for the local people of Kahnawake.