- 1 Industry experts are exploring the usage of AI in crypto mining.
- 2 Research is underway to determine the amalgamation of two technologies.
Miners are looking for ways to leverage their Artificial Intelligence (AI) prowess into crypto mining to bring forth Crypto Mining 2.0. AI is slowly entering and altering nearly every aspect of human life. It is high time for crypto miners to realize that the technology has the potential to solve some of the critical challenges lying unchecked in the industry.
Crypto Mining Embracing AI to Evolve Mining 2.0
Significant players in digital asset mining are actively exploring the possibilities of artificial intelligence. For instance, Hut8 recently ventured into non-mining services while continuing to invest heavily in high-performance data centers. This would allow them to cater to the ever-increasing demand for AI and computing requirements.
In 2022, Hut8 purchased five traditional yet high-powered computing data centers. After this purchase, some of its GPUs and other supporting servers were busy mining Ethereum. Into data centers to carry out VFX rendering and machine learning for its customers, primarily in the gaming industry.
Before getting excited about the premise of AI taking crypto mining to the next level, it should be understood that both sectors have unique requirements. Digital asset mining relies on powerful computational resources and customized hardware to solve complex mathematical problems. At the same time, AI relies on data processing, machine learning, and high-performance computing.
How Can These Technologies Benefit Each Other?
The amalgamation of these two technologies would require addressing unique demands and challenges to cater to AI and digital asset mining. This would also require highly customized infrastructure, investment strategies, and expertise.
Bitcoin miner Xive’s co-founder and CEO, Didar Bekbauov, argues that only altcoin miners can switch to AI computation for mining. The reason mentioned was the use of GPUs, which help both in mining and sharing the computational workload required to train the generative AI systems.
Can Bitcoin Mining Gain Benefit from AI?
Nearly 99% of digital asset mining revolves around Bitcoin mining, which uses dedicated application-specific integrated circuits (ASIC) miners. These machines cannot be used for anything other than BTC mining. However, the underlying technology for building data centers and mining operations is nearly identical. Large-scale miners can dwell to build data centers for AI.
Bitcoin miners can leverage their knowledge and expertise to build AI data centers. Their experience in building and maintaining a mining facility can be of significant use when building data centers. Moreover, miners can participate by providing something for the global need for computing power.
However, for the mining companies to become potential data centers for artificial intelligence, transparency between the two sectors is a prime requirement. Although the software side of AI is evolving rapidly, the hardware side still needs to be improved. Users sometimes have to wait from a couple of minutes to days to receive a response for their prompts to AI.
Mining facilities provide AI with the required computational power. In return, AI can help analyze the data and prompt the facilities on when to increase the mining power, how to best save electricity, etc. The technology can also help predict the best timing for selling and holding the mined currency.
Both digital asset mining and artificial intelligence have their pros and cons, and experts are trying to merge them to get the best of both worlds, which would help both these technologies grow. AI could use the computational prowess of the mining industry, and the mining industry can use the data processing prowess of AI.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.