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SAI Participated in the Bitcoin2021 conference, Clean Computing Power Promotes a Green New Economy

On June 4th, the first day of the Bitcoin 2021 conference, Jack Dorsey, Michael Saylor and other big names gathered in Miami to share their views on the application of Bitcoin and the computing power industry and the future development.

SAI’s North America market advisor Larry Li was invited to attend and delivered a speech in the morning. He said, “Through clean energy to empower the computing power track, use computing power to improve social efficiency, and use technology to achieve a green circular economy are the new ecology of the future integration of energy technology and finance. This new ecological model is sustainable, available and innovative, which is the origin of the name of SAI.”

 

 

The following is the speech delivered by Larry Li:

 

Use clean energy to empower the entire computing track

Hello everyone, I’m Larry,the Northern America advisor of SAI. SAI was established in 2019 and is positioned as a clean energy & computing operator who uses clean energy to empower high-performance chips.

First of all, I would like to thank the organizer for the invitation and let me have this opportunity to share my views on the impact of clean energy on the field of Bitcoin mining. Looking at the entire bitcoin industry track, it can be divided into two tracks, one is the trading track, and the other is the mining track. On the trading track, there is a relatively high degree of attention to exchanges, and the key word is compliance. The successful IPO of Coinbase as a compliant exchange is of extraordinary significance to our industry. On the mining track, the key word nowadays is clean energy. Clean computing power provided by clean energy is in line with the direction of social ESG development and greatly improves economic benefits. Many companies have already taken action, such as ArgoBlockchain and Square.

 

First of all, I would like to introduce SAI to you. We have been committed to solving the energy cost problem of computing since the beginning of our establishment. Our mission is to allow everyone to use cleaner computing power, electricity and heating services based on Sustainable, Available and Innovative technologies. Tesla is the world’s first vertically integrated renewable energy company, from electricity production to storage to consumption. When Elon Musk defined Tesla, he used a very simple structure, which is “clean energy + cars”. At present, Tesla’s market capitalization ranking has entered the top ten, and it is also the only company in the top ten market capitalization list with clean energy as the core concept. The core structure of SAI is “clean energy + chips”, dedicated to solving the energy cost problem of computing and making computing power clean, sustainable, and cost-effective. SAI is committed to become the world’s first horizontally integrated clean energy technology company, from computing to electricity, and to heating, which is empowered by clean energy to serve customers around the world.

 

SAI has four main business segments in terms of clean energy: SAIHEAT , SAIWATT , SAIBYTE , and SAICHIP.

 

SAIHEAT, by providing the server with “water cooling + waste heat utilization” technology, we collect the waste heat generated by computing and reuse it, which can greatly reduce the electricity cost, and replace the traditional heat source to provide clean heat services at the same time. SAIHEAT is based on chip energy technology to realize waste heat recovery and energy secondary utilization, open up computing power, electricity, and heating links to reduce costs and improve energy efficiency. The traditional heating system has been transformed and added a SAIHEAT series chip waste heat heating cabinet. Thus, it can solve many problems such as the replacement of the traditional heating system heat source and the high heating energy cost of heating enterprises. Taking a planting base in western China as an example, the local heating area is 16,000 square meters, and the cost of SAI’s transformation is about 15 million yuan. We can actually save nearly 30 million yuan per year. Within half a year, the technology has been put into operation in multiple locations, with a total heating area of more than 10 million square meters, reducing the heating cost by 35% and 67% of the initial power investment.

 

SAIWATT is to utilize more efficient clean generators and storage transmission technologies to develop clean power consumption scenarios such as hydropower, waste gas power, photovoltaic power, etc., as a computing energy supply to achieve peaking and consumption in the clean power market. After more than two years of development and preliminary accumulation, SAI has reserved more than 2 million kw of abundant low-cost clean energy resources.

 

SAIBYTE, establish a “computing power cloud service + Energy Internet of Things” network system to provide more cost-effective, clean and sustainable computing power, which can boost economic growth through cloud computing and internet energy.

 

SAICHIP, SAI researches and develops high-performance chips made of new material and technology. We are aiming to break through the limitations of manufacturing processes on chip performance and the production capacity on the growth of computing power.

 

At present, SAI mainly provides SAIP.LUS and SAI.RUN services to customers.

SAI.PLUS Provides more cost-effective computing power hosting and leasing services. We can realize one-stop full-process configuration and management of BTC mining assets. We have a wealth of computing power and energy asset-side resources, and have excellent management capabilities. We can help customers purchase high-quality computing power assets in a short time, and provide lower-cost management operation and maintenance services to increase customers’ revenue.

 

In the future, self-built clean and sustainable computing power service, that is SAI.RUN, will also be launched. Our customers we serve are mainly Chinese and overseas large funds.

 

Use computing power to improve the efficiency of the entire society

Why did we choose to enter the energy track of the computing industry? Twenty-five years ago, the American scholar Nicholas Negroponte asserted in his book “Being Digital” that “Computing is no longer just about computing, it will determine our survival.” Through our own in-depth research and analysis, SAI has proved that it actually matches an evolutionary logic.

 

Looking back at the development history of the three industrial revolutions, you will find that the energy efficiency of the entire society is getting higher and higher. In this process, the energy efficiency improvement process in the carbon-based world (that is, the physical world of human real life) can be understood as the improvement of atomic energy efficiency. For example, sending our paper letters from one city to another requires energy to move atoms, and the cost may be quite high. But in the silicon-based world, more value can be delivered through electronic mobility, such as WeChat and WhatsApp, which are fast, efficient, and low-cost ways of delivering information. Similarly, the transfer of value in the silicon-based world can also become more efficient through the global network of digital finance and crypto assets.

 

What are the core costs of computing? Miners are very familiar with these costs, which are chip and energy costs. If you stretch the timeline, you will find that energy costs will account for a greater proportion. Logically speaking, computing can be understood as a process of entropy reduction from a physical point of view, that is, to turn disordered data into order. Therefore, there must be energy input to complete this activity. In other words, there is basically a one-to-one correspondence of how many chips are needed and how much energy is consumed and how much computing requirements. Thus, we will see that whether it is traditional computing, such as Amazon or advanced computing like Bitcoin mining, computing is based on energy and requires a large amount of energy.

 

Therefore, solving energy costs is becoming more and more important to the computing industry. Combined with our accumulated experience in the energy industry and our knowledge of Bitcoin mining market, we have summarized our own development strategy.

 

First, looking at the current market situation, it can be divided into two dimensions: value chain and industrial chain.

On the side of the value chain, we divide computing into two categories: traditional computing and advanced computing. According to public data, traditional computing is expected to grow to a market size of almost $1.56 trillion by 2025, while advanced computing may grow to over $3.12 trillion. The traditional IDC industry contributes about $10.9 billion in electricity bills every year. While Bitcoin, Ethereum and other mining and crypto supercomputing contribute nearly $6.2 billion in electricity bills every year. According to the data, computing types such as Bitcoin and crypto supercomputing have taken a short period of about ten years, and have reached one-half of the scale of traditional computing, and the growth rate may further accelerate.

 

In terms of industrial chain, the focus on computing energy had been relatively low before. According to incomplete global statistics in 2020, about 5% of the total global electricity generation in 2020 was used for computing. However, according to official forecasts, 15% to 25% of global electricity generation by 2030 will be used for computing. In other words, among all the global electricity generation, the computing industrial electricity consumption will rank in the top two in the proportion of the entire electricity industry. The electricity consumption of the computing industry will increase, which is also in line with the evolution of the entire society.

 

Because of the common mission of carbon neutrality, traditional industries are now paying attention to the replacement of fossil energy and the promotion of clean energy. In the computing industry, more and more people are also concerned about whether the computing power uses clean energy, and whether the process of generating computing power is clean and sustainable, and whether it meets the requirements of environmental friendliness and sustainability. Therefore, we will see that in the energy link of the computing industry chain, on the production side, wind power, hydropower, and photovoltaic power will gradually replace thermal power. On the consumer side, water cooling, energy storage, electricity consumption, and electricity adjustment are getting more and more attention.

 

The second link in the industry chain is infrastructure, that is, data centers. According to incomplete statistics, the load of traditional computing in China is about 23 million kilowatts. According to the crypto computing power of the entire network, the advanced computing load is about 10 million kilowatts. The demographic dividend of traditional computing has gradually disappeared, and advanced computing is still growing, and there is an exponential growth trend.

In the chip sector, the ASIC field has a significant lead. The mining machines of big companies such as BITMAIN use the most advanced chip manufacturing process. For CPU and GPU, due to the influence of factors such as the international situation and production capacity, development will have some limitations.

 

In the algorithm link, advanced computing still has the leading advantage of continuous iteration based on the scale of data.

In addition, in the user link, advanced computing has a lot of room for growth at the user level. After all, there is a huge demographic dividend.

 

Use technology to realize low energy consumption and green ecology

This is the computing and energy center of SAI. Through our clean energy-based SAI computing&energy center, combined with water-cooled waste heat utilization technology and power absorption technology. We reduce computing power costs by about 30% for computing power customers. Meanwhile, we reduce the cost of heating power, and save electricity investment. This allows SAI to reduce the costs of our three-party partners in computing power, electricity, and heating, and our profit margin has greatly increased at the same time. In the future, SAI will establish such computing&energy centers around the world to provide services to more customers.

 

Finally, I would like to introduce the original intention of SAI. SAI represents “Sustainable, Available, Innovative”. SAI hopes to use our own efforts to reduce computing power, electricity and heating costs through technology, which are the core costs of the silicon-based world operation. We aim to provide sustainable computing power and heat services based on clean energy to form a green circular economy and truly realize the vision of Make World ₿etter.

 

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SAI was Invited to Participate in the World’s Largest Bitcoin Conference Bitcoin2021

 

On June 4th and June 5th, the Bitcoin 2021 conference will be held in Miami. SAI officially announced that its North American market consultant Larry Li together with former Congressman Ron Paul, Twitter CEO Jack Dorsey, and Miami Mayor Francis Suarez, Micro Strategy Chairman Michael Saylor and others were invited to attend Bitcoin2021.

In the past year, Bitcoin has experienced a strong rise from a sharp drop to $3,000 to a maximum of more than $60,000. Coupled with the cancellation of last year’s conference due to the COVID-19, the heavy return of Bitcoin 2021 will undoubtedly bring together front-line technology leaders, Bitcoin and related computing power industry experts and scholars and Bitcoin believers from all over the world after two years.

As the first digital asset company to join the United Nations Framework Convention on Climate Change, SAI is also the first company in the industry to sign a commitment at the United Nations to reduce carbon emissions and achieve carbon neutrality by providing clean computing power. As the only technology company at the conference that horizontally integrates clean energy to provide clean computing power, SAI has used new energy technology to integrate computing power, heating and electricity research, which has attracted a lot of attention in the industry. According to the aganda on the official website, on the morning of June 4th, SAI’s advisor Larry Li, Jack Dorsey, and Michael Saylor will give speeches successively.

 

The business of SAI covers worldwide. Larry Li, the North American market consultant of SAI who attended the conference, is also the managing partner of AMINO Capital. AMINO Capital is a venture capital fund that brings together Chinese executives from Silicon Valley IT giants, focusing on early investment in cutting-edge projects such as high-tech and information technology. Many companies including Zoom and Kuaishou Video have received its investment.

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Bitcoin Energy Consumption Memorandum: Bitcoin mining reduces the total carbon emissions of human society and accelerates the realization of carbon neutrality

Disclaimer: This report is prepared based on published information that SAI believes to be reliable, but SAI does not guarantee the accuracy and completeness of the information contained. The information or opinions expressed in this report do not constitute investment advice to anyone.

 

Recently, the debate about redefining Bitcoin’s energy waste and causing huge environmental damage has once again aroused people’s attention. Tesla CEO Elon Musk said Wednesday on Twitter that Tesla has “suspended vehicle purchases using bitcoin,” out of concern over “rapidly increasing use of fossil fuels for bitcoin mining. How is the climate problem proportional to Bitcoin?

 

More than eleven years after its creation, Bitcoin is gradually gaining wider institutional and market recognition. Although constructive criticism is beneficial, we believe that some influential financial research institutions are refuting Bitcoin based on outdated information, incoherent arguments, and flawed analysis.

 

In this article, we collected publicly available data from multiple channels including investment institution research reports and academic paper. This memo is made by analyzing those data and information.

 

Bitcoin mining produces less carbon emissions while being more efficient comparing with gold mining, financial system and traditional calculations.

 

The debate about Bitcoin’s massive carbon emissions and environmental degradation has not reached its goal. According to the analysis below, the result shows that the consumption of Bitcoin mining is less than the goldmining, financial and computer industries.

 

Ark Investment Management criticized the stereotypes of common Bitcoin myths. Bitcoin’s energy footprint is easily criticized. From the perspective of electricity costs alone, Bitcoin is much more efficient than traditional banks and gold mining on a global scale.According to a recent research, traditional banking consumes 2.34 billion GJ per year, gold mining consumes 500 million GJ per year, while Bitcoin consumes 184 million GJ, which is less than 10% and 40% of traditional banking and gold mining respectively. In addition, the estimated efficiency of the dollar cost per GJ expenditure of Bitcoin mining is 40 times that of traditional banking and 10 times that of gold mining.

 

CoinShares asserts that, given the amount of energy used, Bitcoin mining is more driven by renewable energy than almost every other large industry in the world. A more useful comparison is the way the industry has developed compared to gold and traditional finance (see below).

For gold, the researchers assumed that the energy consumption per kilogram of gold mined was 175 gigajoules. Approximately 3,100 metric tons of gold are mined each year, bringing the total energy demand for gold mining to close to 150 terawatt hours each year.

 

According to this chart, it can be determined that gold mining requires more energy than Bitcoin mining.

 

 

 

 

There is an important difference between how much energy a system consumes and how much carbon it emits. Although determining energy consumption is relatively simple, you cannot infer the relevant carbon emissions without knowing the exact energy mix, that is, the composition of the different energy sources used by the computers that mine Bitcoin. For example, a unit of hydropower will have a much smaller impact on the environment than the same unit of coal-fired energy.

 

As a result, estimates of the percentage of renewable energy used in Bitcoin mining vary widely. According to a CoinShare report, published in December 2019, it showed that 73% of Bitcoin’s energy consumption was carbon neutral, mainly due to the abundance of hydropower in major mining centers such as Southwest China and Scandinavia.

According to the International Energy Association (IEA), in stark contrast to all other fuels, the renewable energy used for power generation will grow by nearly 7% by 2020. Global energy demand will fall by 5%, but priority access to the power grid and continuous installation of new power plants have laid the foundation for the strong growth of renewable energy.

 

 

IEA also stated that it is expected that the decline in economic activity due to the pandemic will harm the heat consumption of renewable energy sources. Quote from Bill Gates, electricity and heating produce big amount of carbon emission, It is difficult for clean energy to solve the peak shaving and consumption problems. SAI(www.sai.tech) team innovatively reuse the heat from computing and provide heating services, which can solve the energy consumption and carbon emission problems at the same time.  We could use bitcoin mining as a “profitable battery” to consume the idle electricity.

 

Bitcoin uses the highest proportion of clean energy in both financial and technology industry

 

Another key factor that makes Bitcoin’s energy consumption different from most other industries is that Bitcoin can be mined anywhere. Almost all energy used in the world must be relatively close to its end-user production, but Bitcoin does not have this restriction, which allows miners to utilize power that is not available to most other applications.

 

Hydro is the most well-known example of this. In the wet season in Sichuan and Yunnan in China, enormous quantities of renewable hydro energy are wasted every year. In these areas, production capacity greatly exceeds local demand, and battery technology is far from advanced, so there is no way to store and transport energy from these rural areas to urban centers that need it. These regions are likely to represent the largest single stranded energy resources on the planet. Therefore, it is no coincidence that these provinces are the heartland of China’s mining industry, responsible for almost 10% of global Bitcoin mining in the dry season and 50% in the rainy season.

 

As mentioned earlier, bitcoin miners, on the other hand, are an ideal complementary technology for renewables and storage. Combining generation with both storage and miners presents a better overall value proposition than building generation and storage alone. In BCEI White Paper, by combining miners with renewables + storage projects, we believe it could provide the grid with readily available “excess” energy for increasingly common black swan events like excessively hot or cold days when demand spikes (e.g. the early 2021 outages in Texas).

 

In other terms, the electricity consumed by Bitcoin mining is some energy that is “destined to be wasted”, and to some extent it has increased the income of clean energy power generation.

 

Only by increasing the benefits of using renewable energy and reducing its costs, the market will spontaneously choose to use clean energy, and the transformation of energy use will be truly accelerated. At this point, Bitcoin mining has played a certain “facilitation” role.

 

Bitcoin mining is more in line with ESG and is conducive to carbon neutrality

 

Many journalists and academics talk about Bitcoin’s high “per-transaction energy cost,” but this metric is misleading. Most of Bitcoin’s energy consumption occurs during the mining process. After the coin is issued, the energy required to verify the transaction is very small. Therefore, it doesn’t make sense to just look at the total energy consumption of Bitcoin to date, and then divide it by the number of transactions. Most of the energy is used to mine Bitcoin, not to support transactions. This led to our final serious misunderstanding: the energy costs associated with mining Bitcoin will continue to increase exponentially.

 

Bitcoin mining is an energy intensive industry. Correspondingly, miners exude large quantities of heat as a by-product of the hashing process, which conventionally has been vented into the atmosphere. Represented by SAI (www.sai.tech), companies are exploring different ways to recover and reuse waste heat in order to create additional sources of income and offset electricity costs.

 

SAI was founded in 2019, and is a horizontally integrated clean energy technology company. As the vice chairman unit of the Clean Heating Industry Committee (CHIC), SAI has four core technology sectors: SAIHEAT (chip waste heat utilization), SAIWATT(clean power consumption), SAIBYTE (computing cloud network system), and SAICHIP (new computing chip).

 

The SAIHEAT Energy & Computing Center, which has obtained AAA-level certification for clean heating services, uses the “chip water cooling + chip waste heat utilization” technical system to realize waste heat recovery and energy secondary utilization, and open up the computing power, electricity, and heating links to reduce costs and improve Energy efficiency. The traditional heating system can be applied in civil and commercial buildings after adding a SAIHEAT series chip waste heat heating cabinet. In an ecological park of SAI in central Asia, the greenhouse can be maintained at a suitable temperature of more than 40 degrees by recycling the waste heat generated by computing when the outdoor temperature is minus 7 degrees. SAI can reduce the computing power cost of about 35% for customers, together with the heating cost of the heat demand side and the corresponding power investment.

 

For example, in a project of SAI Heat Technology located in Central Asia, the SAIHEAT Energy & Computing Center can use technical means to recover the waste heat generated by computing, and then use the heat for greenhouse heating. The greenhouse can be maintained at 43.4 degrees (the outdoor environment is minus 7 degrees). The average heat recovery rate of the whole process exceeds 80%. This allows customers to reduce the cost of computing power and heating power by about 35% while effectively reducing the power supporting investment, realizing a clean computing power solution.

 

Use the renewable energies to power the mining chips, reuse the heat the chips self-produced, it is a carbon neutral closed loop.

Prospects for the future

 

Arthur Lee, founder of SAI, said that SAI ’s mission is to enable everyone to use more clean and affordable computing power, electricity and heating resources. In the future, the company will adhere to “energy empower computing, computing empower future” corporate vision, continue to explore in the direction of providing high-performance computing based on clean energy, accumulate experience for the industry to achieve a comprehensive clean computing power. At the same time, SAI has also made a good circle of leadership and demonstration effect “carbon neutral” goal.

 

In conclusion, Bitcoin has been dealing with scepticism since its inception. Some theories are wilder than others, but arguably one of the most latched-onto debates has been around Bitcoin’s energy consumption and its alleged harmful level of emissions. The traditional banking system, according to a recent research, total consumption for banks during a year only on three metrics, is around 26 TWh on servers, 87 TWh on branches and 26TWh on ATMs for a total of close to a 140 TWh a year. Bitcoin consumes 1/4 the power of banks. But, this is just the start for bitcoins. As we move towards making every transaction using cryptocurrency, the power consumption decreases.

 

As the clean computing industry develops more mature, Bitcoin mining is more conducive to reducing the total carbon emissions of human society, and then achieving the goal of carbon neutrality.

 

References

 

https://ark-invest.com/

https://digiconomist.net/bitcoin-energy-consumption

https://coinshares.com/research/bitcoin-mining-network-december-2019

https://coinshares.com/research/bitcoin-mining-network-december-2019

https://www.iea.org/reports/renewables-2020?mode=overview

https://ourworldindata.org/grapher/renewable-energy-consumption?country=~OWID_WRL

https://ourworldindata.org/grapher/modern-renewable-energy-consumption?country=~OWID_WRL

 

 

 

 

 

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SAI Signed UN Climate Neutral Now Initiative, Who is the World’s First Company that Promises to Use Clean Computing Power to Achieve Carbon Neutrality

This year, Chinese researchers announced a study. According to their estimates, if the existing energy sources and use efficiency are maintained, the energy consumption generated by blockchain operations will reach a peak in 2024, generating more than Italy’s annual greenhouse gas emissions. Square recently released a memo by quoting ARK’s research model, stating that Bitcoin mining is supplying a larger proportion of grid baseload energy at a lower cost. Thus, the use of renewable energy systems has been enhanced.

 

Recently, the global computing operator SAI joined the UNFCCC Climate Neutral Now (UNFCCC Climate Neutral Now, hereinafter referred to as the “Neutral Initiative”) launched by the Secretariat of the United Nations Framework Convention on Climate Change (UNFCCC). This global computing energy operator empowered by clean energy for high-performance chips has become the world’s first digital asset company to join the UNFCCC, and also the first in the industry to sign a commitment to the United Nations to reduce the cost by providing clean computing power. SAI is committed to reducing carbon emissions and achieving carbon neutrality by providing clean computing power.

The “Neutral Initiative” plan was initiated and implemented by the UNFCCC in 2015 to encourage the whole society to take actions to protect the climate. The initiative is promoted and implemented by the secretariat of the UNFCCC, which provides scientific methods to reduce corporate carbon footprints and help achieve carbon neutrality. As of the end of 2020, there have been a number of contracted members including various enterprises, organizations, international and intergovernmental agencies, United Nations agencies, individuals, etc., covering multiple industries such as finance, technology, and engineering. The addition of SAI has also filled the gap in the high-performance computing industry related to blockchain.

 

SAI was founded in 2019 and is a clean computing technology enterprise. As the vice chairman unit of the Clean Heating Industry Committee (CHIC), SAI has four core technology sectors: SAIHEAT (chip waste heat utilization), SAIWATT (clean poåwer consumption), SAIBYTE (computing cloud network system), and SAICHIP (new computing chip).

The SAIHEAT Energy&Computing Center, which has obtained AAA-level certification for clean heating services, uses the “chip water cooling + chip waste heat utilization” technical system to realize waste heat recovery and energy secondary utilization, and open up the computing power, electricity, and heating links to reduce costs and improve energy efficiency. The traditional heating system can be applied in civil and commercial buildings after adding a SAIHEAT series chip waste heat heating cabinet. In an ecological park of SAI in central Asia, the greenhouse can be maintained at a suitable temperature of more than 40 degrees by recycling the waste heat generated by computing while the outdoor temperature is minus 7 degrees. SAI can reduce the computing power cost of about 35% for customers, together with the heating cost of the heat demand side and the corresponding power investment.

In addition, SAI has also developed its own EMS (environment management system) system according to the ISO14000 standard, trying its best to minimize the negative impact of business processes on the environment.

In a project of SAI, the recovery of the waste heat generated by computing is used for heating, and the greenhouse is maintained at 43.4 degrees (the outdoor environment is minus 7 degrees)

 

When talking about the next step of development, the founder Arthur Lee said that SAI ’s mission is to enable everyone to use more clean and affordable computing power, electricity and heating resources. In the future, the company will adhere to “energy empower computing, computing empower future” corporate vision, continue to explore in the direction of providing high-performance computing based on clean energy, accumulate experience for the industry to achieve a comprehensive clean computing power. At the same time, SAI has also put every effort to achieve the “carbon neutral” goal.

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SAI’s CEO Arthur Lee: Carbon Neutrality Determines the Future Trend of the Computing Power Industry is to Use Clean Energy to Provide Clean Computing Power

On April 17, the “Supercomputing · Fusion, 2021 Global Blockchain Computing Power Conference” officially opened in Chengdu, Sichuan Province, China. This conference is co-sponsored by Babbitt, ChainNode, and Poolin. WuSaidBlockchain is co-organized and 360Power is the general title sponsor.

In 2021, “carbon neutrality” will become a national plan, and China is facing the urgent need to transform from traditional energy to clean energy. On the other hand, enterprises and countries are carrying out digital transformation, and the demand for computing power in modern society is increasing. Increasing computing power means consuming more energy. Under such a background, how can computing power be “cleaned and energized”? Can clean computing power and energy-efficient computing power be obtained at the same time?

 

In the afternoon, Arthur Lee, the founder of SAI, was invited to give a speech at the conference, “A Century of “Carbon Neutral” Plan, How Can Sustainable Clean Energy be Applied in the Mining Field?” I believe it can bring some enlightenment.

The following is the full text of the speech compiled by Babbitt:

 

Hello everyone, I’m Arthur Lee, the founder of SAI. First of all, thank the organizer for the invitation and let me have this opportunity to share my views on the impact of carbon neutrality on the field of computing power that the public has been paying more attention to recently.

 

First of all, I would like to introduce SAI to you. We were established in 2019 and have been committed to solving the problem of energy costs of computing since our establishment. Today, I would like to take this opportunity to introduce our next development plan, and to discuss with all of you about energy cost, efficiency and sustainability issues in the current carbon-neutral environment and the future development of the computing industry

 

How to become the Coinbase of the computing power industry?

 

A few days ago, when Coinbase went public, it caused a lot of waves. As a compliant exchange, Coinbase’s IPO means that traditional capital recognizes emerging industries. The entire blockchain industry can be divided into two main tracks, one is trading and the other is computing power. The main concern on the trading track is the exchange, and the key word is compliance. Therefore, the successful IPO of Coinbase as a compliant exchange is of extraordinary significance to our industry. We think about how to become the Coinbase of the computing power industry?

 

The most important and arguably the biggest cost in the computing industry is energy. I believe that many miners and people in the mining industry face the problem of energy costs. Our company has been dedicated to solving the energy cost problem of computing with technology since the beginning of our company. After continuous exploration, we have accumulated more experience. In terms of the company, we have received investment from Bitmain and some domestic headquarter institutions. Our customers are mainly domestic and overseas large funds, and our business is mainly to help B-side customers to carry out computing power asset allocation and computing power hosting services.

 

How can clean energy be applied in the field of mining under the current carbon-neutral market demand?

Let’s start with the positioning of our company. I’m a great admirer of Elon Musk, who is a great entrepreneur. When he defined Tesla, he used a very simple structure, which is clean energy + cars. He has always insisted on this concept. He believes that Tesla is the world’s first company to vertically integrate renewable energy, from electricity production to storage to consumption. Tesla is currently ranked in the top 10 in terms of market capitalization and is the only company in the top 10 market capitalization list that has clean energy as its core concept. I believe it will have the same significance as the Coinbase’s IPO a few days ago, bringing us into a new era.

 

We learned from Tesla’s philosophy and combined our knowledge of the industry to establish SAI’s positioning. Our core structure is clean energy + chips, dedicated to solving the problem of computational energy costs. SAI is positioned to become the world’s first horizontally integrated clean energy technology company, serving customers around the world from computing power to electricity to heat.

 

 

Why did we choose to enter the energy track of the computing industry? Looking back at the development history of several industrial revolutions, we will find a rule. From the first industrial revolution, heat was first used on a large scale instead of manual work, to the discovery and application of electricity in the second industrial revolution, which could drive industrial production more efficiently, and then in the third scientific and technological revolution, the computing industry has greatly shortened the time and space barriers of the physical world through computing power. The whole society is getting higher and higher from the perspective of energy efficiency. In other words, the value created by each kilowatt-hour of electricity is getting higher and higher. In this process, we discovered that the energy efficiency improvement process in the carbon-based world (that is, the physical world of human real life) can be understood as the improvement of atomic energy efficiency. For example, sending our paper letters from one city to another requires energy to move atoms, and the cost may be very high. But in the silicon-based world, it is possible to complete the fast and efficient way of transmitting information by sending WeChat through the movement of electrons. Similarly, the transfer of value in the silicon-based world can also become more efficient through the global network of digital finance and crypto assets. In the silicon-based world, the efficiency of value and information transmission is mainly improved by continuously improving electronic energy efficiency. With the development of human society and the advancement of science and technology, this trend will further accelerate. From the evolution of the carbon-based world to the silicon-based world, and the evolution from atomic energy efficiency to electronic energy efficiency, it can be said that the essence of human social progress is the continuous evolution of energy efficiency.

We believe that all developments in the silicon-based world must be based on computing. So what is the core cost of computing? Miners are very familiar with these, one part is the chip cost, the other part is the energy cost. If you stretch the timeline, you will find that energy costs will account for a greater proportion.

 

In essence, computing can be understood as an activity of entropy reduction from a physical point of view, that is, to turn disordered data into order, and there must be an input of energy. In other words, as many computing requirements as there are, as many chips are needed and how much energy is consumed. So we will see that whether it is traditional computing, such as Alibaba Cloud, Amazon or Bitcoin mining, all computing is based on energy and requires a lot of energy. Thus, solving energy costs becomes more and more important to the computing industry. Here we also have a deep understanding of the characteristics of each computing industry, and combined our accumulation in the energy industry and our knowledge of this market, we have summarized our own development strategy.

 

SAI Development Strategy

 

The first overview of the current state of the market is divided into two dimensions: the value chain and the industry chain.

In terms of value chain, we divide computing into two categories: traditional computing and advanced computing. According to publicly available data, the market size of traditional computing is larger. Last year, the market size was about 3 trillion, and it is expected to grow to almost 10 trillion by 2025. Advanced computing includes high-performance computing such as artificial intelligence, crypto supercomputing, and edge computing. In 2020, its scale was about two trillion. However, data predicts that the advanced computing market may grow to 20 trillion or even 30 trillion by 2025.

 

According to incomplete statistics, the scale of IDC (Internet Data Center) in traditional computing, China’s stock load was 23 million kilowatts in 2019. The current load of the mining industry is about 10 million kilowatts. In terms of electricity bill contribution, IDC contributes about 70 billion electricity bills every year. Bitcoin mining and crypto supercomputing contribute nearly 40 billion in electricity bills every year. From the data point of view, Bitcoin and crypto supercomputing took a short period of about ten years, reaching one-half of the scale of traditional computing, and the growth rate may accelerate further. Therefore, from the perspective of the value chain, we believe that advanced computing has a faster development speed and more space for development.

From the perspective of the industrial chain, the industrial chain is divided into many links. The first link is the energy link, which is also the focus of our speech today.

The focus on energy of computing had been relatively low before, or the society had not widely recognized its importance. According to incomplete global statistics in 2020, about 5% of the total global power generation was used for computing. However, according to official forecasts, 15% to 25% of global power generation will be used for computing by 2030 . In other words, among all the global power generation, the computing industrial power consumption will rank in the top two in the proportion of the entire power industry.

Because of the common mission of carbon neutrality, traditional industries are now paying attention to the replacement of fossil energy and the promotion and use of clean energy. In the computing industry, more and more people will also focus on whether the computing power uses clean energy, and whether the process of generating computing power meets the requirements of environmental friendliness and sustainability. Therefore, we will see that in the energy link of the computing industry chain, on the production side, wind power, hydropower, and photovoltaics power will gradually replace thermal power. On the consumer side, liquid cooling, energy storage, power consumption and power adjustment are getting more and more attention.

 

 

The second link in the industry chain is infrastructure, that is, data centers. According to incomplete statistics, the traditional domestic computing is about 23 million kilowatts. According to the backward projection of crypto power, the advanced computing load is about 10 million kilowatts. The demographic dividend of traditional computing has gradually disappeared, and advanced computing is constantly increasing, which shows an exponential growth trend.

In the chip sector, the ASIC field has a significant lead. The mining machines of companies such as Bitmain use the most advanced chip manufacturing process. For CPU and GPU, due to the influence of factors such as the international situation and production capacity, development will have some limitations. In the algorithm link, advanced computing still has the leading advantage of continuous iteration based on the scale of data. In addition, in the user link, advanced computing still has a large space for growth at the user level, after all, there is a huge demographic dividend. In general, traditional computing and advanced computing have great opportunities from a strategic point of view. Among them, traditional computing mainly focuses on domestic large cycles, and advanced computing requires domestic and international double cycles.

 

In from the perspective of clean energy business, SAI has four main business segments: SAIHEAT(chip waste heat utilization), SAIWATT(clean power consumption), SAIBYTE (computing cloud network system), and SAICHIP (new computing chip). SAIHEAT, by providing the server with liquid cooling + waste heat utilization, collects the waste heat generated by computing and reuses it, which can greatly reduce the electricity cost, and replace the traditional heat source to provide clean heat services at the same time. SAIWATT(clean power consumption) is to use idle energy such as hydropower, wind power, and waste gas power to do consumption and peaking through the electricity consumed by computing, so as to reduce costs and increase efficiency for energy owners and reduce the cost of computing power for us. In addition, computing power cloud services and new chip materials are our main directions to jointly reduce the cost of the computing industry.

 

 

Speaking of specific business, we currently mainly provide customers with clean energy-based computing power custody services. Also, at an appropriate time in the future, self-built clean and sustainable computing power will also be launched.

 

Through our clean energy-based SAI computing and energy center, combined with waste heat utilization technology and power consumption technology, we can reduce the computing power cost of customers by about 30%, while reducing the cost of heating power, and saving power supporting investment. This enables SAI to greatly increase our profit margin while reducing the cost of our three-party partners in computing power, electricity, and heat. In the future, we will establish SAI computing and energy centers around the world to provide services to more customers.

 

Finally, I would like to introduce the original intention of SAI.

The prosperity and development of every industry must break through many difficulties. In such a fast-developing industry, we believe that even if everyone and every company buys BTC, ETH, Filecoin, etc., it will not necessarily make the world a better place. However, we hope that through our own efforts, we can use technology to reduce the core costs of computing power, electricity and heat, which are the core costs of the silicon-based world, and provide sustainable computing, electricity, and heat services based on clean energy, so as to form a green circular economy,  which can realize the vision of Mᴱake World ₿etter.

 

Thank you for your attention. If you have the right opportunity or have any business needs, you can also actively contact us.

 

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Top-level Strategy For China’s Energy Counting Industry

As a continuation of the series of articles “The Underlying Logic of SAI”, I have previously established a framework of basic principles including theories of Computing and energy, Computing and energy parameters, Computing and energy theorems, wealth blocks, energy efficiency acceleration, etc. Based on this framework, this article will propose how we should judge computing and energy industry trends and find out a strategic development path. Also, part of it is my post-reading reflection on Mr. Huang Qifan’s new book “Structural Reform”.

 

I. Fundamental Aspects of China’s Computing Industry

 

1. Industry chain

a. Electricity: China is the world’s largest power generation country, with low power generation and transmission costs and relatively perfect infrastructure; 5%-8% of global annual power generation is used for computing, and this percentage is expected to increase to 15%-25% in 2030.

b. Infrastructure: China’s traditional data center load size is about 23 million kw, concentrated in user-rich areas, i.e., first- and second-tier cities and their surrounding areas, with a scale CAGR of 15%+, accounting for more than 30% of the global scale; China’s supercomputing data center load size is about 10 million kw, concentrated in energy-rich areas, i.e., thermal power and hydropower-rich areas such as northwest and southwest, dominated by the encryption supercomputing industry, with a scale CAGR of Growth rate of 30% +, accounting for more than 70% of the global scale.

c. Chip: subject to U.S. technology sanctions, SMIC and chip production-related industries are still in full catch-up, CPU and GPU class servers face technical barriers and development bottlenecks; ASIC chips and servers have a comprehensive advantage, the world’s top five ASIC supercomputing server manufacturers such as Bitmain are from China, the product market share of more than 95%, light Bitmain a Market share of more than 60%, and become TSMC’s global top six, Asia’s second largest customer, products continue to use the most advanced chip process with Apple, Samsung, Nvidia and so on.

d. Users: In the field of traditional computing, China has the largest number of Internet and mobile Internet users in the world, with huge population and traffic dividends in the early stage, and the current population and traffic dividends tend to be saturated but will still maintain huge scale advantages; in the field of supercomputing, AI supercomputing has scale dividends and huge development potential by taking advantage of China’s data base, and encryption supercomputing has huge development potential by taking advantage of China’s electricity, infrastructure and chips. In the field of supercomputing, AI supercomputing has the scale dividend and huge development potential by taking advantage of China’s data base, and crypto supercomputing has the advantages of electricity, infrastructure, and chips to become the center of serving global computing power demand.

 

2. Value chain

a. China’s traditional computing industry, which contributes about RMB 70 billion to the annual electricity bill, with total data center assets of more than RMB 1 trillion, and the scale of the radiated telecom and Internet industries of more than RMB 15 trillion.

b. China’s supercomputing industry, AI supercomputing is still in its initial stage, and several unicorn enterprises have been born; crypto supercomputing contributes about RMB 40 billion to the electricity bill annually and is growing rapidly, the total asset size of crypto supercomputing centers exceeds RMB 200 billion, and the scale of global crypto asset industry served exceeds RMB 5 trillion.

 

3. Supply chain

a. China’s traditional computing industry, the core output value areas including chip server and underlying operating system are monopolized and restricted by other countries, so it needs to invest heavily in independent research and development and spend at least 5-10 years to catch up; the infrastructure of computing industry including data center, telecommunication network and other core supply chain is well supported, users have large demand based on Internet, mobile Internet and telecommunication business, and the scale of data is large, so it has The basic advantages of rapid development.

b. In China’s supercomputing industry, AI supercomputing is yet to be observed in terms of core algorithms and commercial application scenarios; crypto supercomputing has a comprehensive leading edge, with crypto supercomputing servers and crypto supercomputing centers in a leading leading position in the world in terms of technology and scale, and the trading volume of crypto asset trading service platforms accounting for more than half of the global scale.

 

II. Traditional Computing Dominates the “Major Domestic Cycle”

 

1. vigorously promote the new infrastructure

Service computing infrastructure is the foundation of industrial Internet and digital economy. The service object of traditional infrastructure is the traditional economy and human’s daily life, while the new infrastructure service is based on big data, cloud computing, artificial intelligence, blockchain digital economy.

The supply-side structural reform proposed by the country is centered on the five major tasks of removing production capacity, removing inventory, removing leverage, reducing costs and replenishing short boards. The vigorous development of new infrastructure can realize the effective upgrading and utilization of backward and idle energy production capacity, and find a new power point and breakthrough point for local governments in the environment of real estate overdevelopment, while it can lay a high-quality foundation for further reducing the running cost of computing industry and digital economy.

 

2. Chip / algorithm to make up for the shortcomings

At present, China’s main shortcomings in the traditional computing industry in chip manufacturing and software operating systems, such as photolithography, windows, android & ios, etc. are monopolized by other countries, and the leading edge of hardware and software in the 5G industry is also suppressed by the global market and supply chain. Therefore, at the national and enterprise levels, we are already doing our best to increase research investment and support, and strive to break the “neck” technology one by one.

 

3. Digital economy internal circulation

The double blow of the trade war and the epidemic has forced China to re-examine the international pattern to seek new power points, so the country has proposed a “domestic circulation-based”, of which the digital economy provides a huge support force for the domestic economic circulation. Including a large number of applications and services of the Internet and mobile Internet, effectively linking online and offline services, more efficient information transmission, product circulation, service support.

Therefore, in the next period, we still need to make every effort to promote the rapid development of the digital economy supported by new infrastructure and traditional computing industries, to promote the upgrading of the consumer Internet and industrial Internet, and to further reduce costs and increase efficiency for the domestic economic cycle.

 

III. Crypto-Supercomputing Plus “Domestic and International Double Loop”

 

1. New Infrastructure in Western Region

The traditional computing industry is mainly distributed in user-rich areas, so it is concentrated in and around first- and second-tier cities, which need to control energy consumption to alleviate power shortage and power costs. If these regions blindly catch up with the trend of “new infrastructure” and build a large number of traditional data centers, they will only face the serious problems of idle space, wasted resources and capital loss.

The crypto-supercomputing industry, with its low network and latency requirements and extreme sensitivity to energy costs, is well suited for vigorous development in energy-rich areas in the west, and the power consumption parks supported and promoted by local governments in the west in recent years are actively responding to the development trend of this market demand. The western region is rich in thermal power, hydropower, wind power and photovoltaic power resources, and there is a large amount of idle redundancy, which leads to huge pressure on peaking and consumption, and lengthens the return cycle of fixed investment. Vigorously promoting the development of encryption supercomputing industry in the energy-rich areas in the west not only realizes the full consumption and utilization of idle power resources, but also drives the de-backward production capacity and industrial transformation in remote and backward areas, realizes more local economic income with less initial investment than traditional computing, helps the western region to initially establish the infrastructure required for new infrastructure, and prepares for the full development of digital economy in the next step.

 

2. Computing power to serve the FTA

Traditional computing industry and digital economy mainly serve domestic market users and large domestic cycles, while the arithmetic demand of crypto-supercomputing industry is distributed and globalized, and China’s crypto-supercomputing industry dominates the world, so it can effectively use this advantage to develop arithmetic service trade.

At present, China’s service trade has huge shortcomings, one is that China has a large service trade deficit, and the deficit reached $292.2 billion in the total service trade import and export of $759.4 billion in 2018, ranking first in the world and accounting for 40% of the global service trade deficit; second, the structural efficiency is not good, and China’s service trade is mainly concentrated in labor-intensive industries, while knowledge-intensive industries, capital-intensive, resource-environment The service trade capacity of intensive industries is very weak, and they all show a large deficit.

If China’s leading edge and dominant position in crypto-supercomputing industry can be effectively utilized to drive the establishment of crypto-supercomputing centers and computing services FTAs in the western region to provide cost-effective crypto-supercomputing computing services to the world, it will produce very significant effects: 70-100 billion kWh of idle electricity will be consumed for the western region every year, adding 20-30 billion RMB to the electricity-related energy industry foreign exchange revenue; annual sales of arithmetic services to the world could reduce the service trade deficit by $25 billion, accounting for about 9% of the existing deficit; drive the digital transformation of backward production capacity and the overall economy in the western region, and pool global demand for arithmetic power to promote the rapid development of the domestic upstream ASIC and GPU server industries.

 

3. Offshore RMB settlement

Based on the globalization pattern of crypto asset arithmetic services and the leading edge of China’s crypto supercomputing industry, further attempts can be made to establish offshore RMB and crypto asset settlement systems in Hong Kong and Hainan to promote RMB internationalization and globalization of arithmetic service trade and attract global capital into China.

In early August 2019, the U.S. Treasury Department suddenly announced that China is a “manipulator of exchange rates”, which has never been done in the past 10 years, which shows the seriousness of this statement. In 2015, the U.S. introduced a bill that sets out punitive provisions for “exchange rate manipulators” around the world. Once a country is deemed a manipulator, the U.S. government can take ten disciplinary measures, including a series of sanctions and freezing measures in financing, credit, listing, trade, settlement, and assets. Among them, the eighth penalty clause points out that the use of the bitcoin system to help and stimulate the “exchange rate manipulation country” of enterprises and individuals to abscond with funds out of the country, for this article we argue to see, once it happens there will certainly be some domestic funds to find ways to flee the situation, but bitcoin is not the best choice, because the domestic bitcoin secondary market At the same time, in the existing world landscape, there will be more funds that are willing to enter China but are therefore hindered, as bitcoin trading has compliance channels in major developed countries and economies around the world, coupled with China’s arithmetic service advantage, which can help global funds enter China through crypto assets and crypto supercomputing services, the offshore RMB and crypto asset settlement system becomes This is especially important.

We see that the crypto asset trading platforms managed and run by Chinese teams account for more than half of the global crypto asset trading volume, among which Huobi and OKEX have successfully borrowed the main body of Hong Kong listing and relocated their headquarters to Hainan Free Trade Zone, while Hong Kong is also preparing to launch digital asset trading license, which all lay the foundation for the trade of arithmetic services and offshore settlement of crypto assets.

 

4. Multi-dimensional response to the financial war

It should be noted that the above ten articles for “exchange rate manipulators” basically cover all the contents of the “financial war”, either not to fight, or to fight is these ten articles, we should deal with the “exchange rate war ” “financial war” “long-arm jurisdiction war” is nothing more than the above ten.

Therefore, accelerating the new infrastructure in the western region and establishing arithmetic power to serve the FTA and the settlement system of offshore RMB and crypto assets is a systemic strategic defense system. At present, the global crypto asset industry has exceeded $2 trillion and is expected to increase rapidly to $20-30 trillion in the next 3-5 years. Currently, there are national-level compliant crypto asset trading platforms and services platforms in the U.S., Japan, Singapore, and South Korea. Take the U.S. as an example, Coinbase is the largest crypto asset compliant exchange in the U.S., and its spot trading volume accounts for more than 20% of the world; Bakkt, as a key investment project of the Intercontinental Exchange Group (ICE), is gradually becoming the largest cryptocurrency derivatives compliant exchange in the world; the U.S. Grayscale Fund has accumulated more than $12 billion in bitcoin trusts under management and is growing rapidly; Fidelity Asset is fully engaged in the crypto-asset related industry; PayPal has launched the service of buying bitcoin for tens of millions of users and supports the transaction settlement of bitcoin and other crypto assets in 28 million global merchant systems.

The U.S. is doing its best to seize the secondary market for crypto assets, while China is uniquely positioned to dominate the primary market for crypto assets in terms of arithmetic. The arithmetic power is the security foundation and value foundation of crypto assets, and the strategic significance is becoming more and more apparent as the voice in the crypto arithmetic industry can be effectively transmitted to the secondary market of crypto assets.

The crypto supercomputing industry should become one of the multi-dimensional strategies to deal with the financial war, and at the same time do a good job of supply-side structural reform of the domestic financial system and properly promote the internationalization process of RMB, so that we can comprehensively deal with the future risks and grasp the opportunities in the new era.

 

5. The new global monetary landscape

The U.S. debt level has reached a record high, and it is foreseeable that the new U.S. government will have to continue to increase its lending efforts in order to cope with the continuously deteriorating epidemic and economic situation, and the dollar confidence crisis will become more and more serious.

The history of the development of global currency is still clearly visible, whether it is the first industrial revolution British coal industry and industrial strength to establish the global status of the British pound, or the second industrial revolution, World War II, oil trade to help the dollar firmly lock the major currency pattern of the world today, to become a truly global currency, there must be a strong enough credit and trading ecological support. Remember that the Japanese yen, the last to attempt internationalization, collapsed at the feet of the Plaza Accord and has not recovered since.

In order to finally achieve internationalization, we need to comprehensively promote cross-border settlement of RMB, actively carry out local currency swaps between countries, build an offshore trading market for RMB, promote the clearing and pricing of RMB bulk materials, strengthen the influence of RMB in countries along the “Belt and Road”, and accelerate the construction of a global network of commercial banks with RMB as the clearing currency. The Bretton Woods System

“The collapse of the Bretton Woods system has completely decoupled the U.S. dollar from gold, and it must rely on oil trade to maintain the dollar’s power of speech. While countries are taking the initiative to increase their gold reserves, they are actively looking for more “gold-like” value storage vehicles on the one hand, and are more eager to have a credible global monetary system with an “anchor” on the other hand, and no longer want to be a victim of hyper-inflationary dollar. Crypto assets, led by Bitcoin, are gradually becoming a strategic reserve for more countries due to their anti-inflation, decentralized, anonymous and secure characteristics. The dominance of the US in the secondary market of crypto assets stems from the fact that US companies and individuals are gradually aware of the potential risk of devaluation of holding US dollar assets and want to protect their assets in this way; on the other hand, US policymakers see the huge development potential of the crypto asset market and try to control the US dollar like oil in the settlement discourse of crypto asset transactions to further enhance the status of the US dollar.

Therefore, RMB should seize the opportunity of crypto-asset market development and make full use of crypto-supercomputing service trade and offshore trading platform of crypto-asset to promote the global trading and settlement of digital RMB and crypto-asset, so as to enhance the voice and influence. On the other hand, we will make full use of the characteristics of crypto assets as the “anchor of global currency”, anchor the legal digital currency with it in a suitable way to enhance its credibility, and strengthen cooperation with other countries to lead the new pattern of global currency.

 

6. New ecology of energy finance

The open and cooperative stance that our country has been adhering to will be conducive to our mutual benefit and progress with countries around the world, in which we will not only solve the difficulties and problems we encounter, but also provide quality solutions for countries to solve their problems within the scope of our ability. The current world situation is essentially a confrontation between the “one America” and the “pluralistic cooperation” system. All the problems we encounter will also be encountered by other countries that adhere to the concept of “pluralistic cooperation”, and our needs to develop digital economy, realize energy transformation and prevent financial risks will also be encountered by other countries.

The crypto-asset and crypto-supercomputing industries are developing rapidly in countries around the world, from Singapore, Myanmar, Bhutan and Malaysia in Southeast Asia, Kazakhstan and Kyrgyzstan in Central Asia, to the United States and Canada in North America and Norway and Iceland in Europe, and countries are seizing new opportunities in the primary and secondary markets of crypto-assets in different ways. In particular, the crypto-supercomputing industry is becoming an important strategic layout for countries to achieve energy industry transformation and financial security. From the energy perspective, countries with rich energy resources around the world are in a position and motivated to promote the development of crypto-supercomputing industry in their countries, which can not only change their current GDP over-dependence on the export of cheap energy resources, but also give full play to the advantage of abundant and cheap energy resources to realize higher energy resource premiums, and at the same time promote the realization of digital, technological and financial transformation of the energy industry and the strategic financial security purpose.

China’s advantages in the whole industrial chain, value chain and supply chain of crypto-supercomputing industry can help us achieve the dominant discourse in the global crypto-supercomputing industry on the one hand, and realize the purpose of domestic and international double circulation of crypto-supercomputing industry services; on the other hand, we can integrate our advantages in chip servers, infrastructure, computing power operation and maintenance, and computing power trading in the crypto-supercomputing industry to export overall solutions to the outside world and help On the other hand, we can integrate our advantages in crypto-supercomputing industry chip server, infrastructure, computing power operation and maintenance, and computing power trading, export overall solutions to help other countries to quickly establish crypto-supercomputing industry, and jointly promote the development of new global energy finance ecology on this basis.

 

IV. SAI Empowered Computing and energy Industry Evolution

 

1. Industrial Internet of computing power

SAI is a global Computing and energy operator based on chip energy technology, and is committed to effectively reducing the energy cost and computing power cost of computing industry and promoting the accelerated improvement of energy efficiency of computing and energy industry through the four-dimensional technology matrix of “chip waste heat utilization + clean power consumption + computing power to improve energy efficiency + new computing power chip”.

By reducing the four core costs of heat, electricity, algorithms and chips, we are becoming the “gas pedal” of the computing industry, cooperating with the upstream and downstream of the industry to establish a global computing industry Internet, and jointly provide users with more cost-effective computing services.

 

2. Electricity Industrial Internet

Electricity is one of the core costs of computing industry, SAI has high quality clean power consumption solutions and global power resources. Through technology linking the power users of computing and power resources, we help computing customers to obtain cheap power resources and also help power customers to realize cost reduction and efficiency increase.

On the one hand, we reduce the additional consumption of electricity and the overall PUE of the project through more efficient liquid cooling technology to achieve energy saving and consumption reduction; on the other hand, we also provide a better solution for clean power consumption and traditional power peaking, which no longer requires expensive energy storage equipment input or generates wasted resources as before. We establish a power industry Internet with clean power as the link, forming an effective supplement to the whole traditional power industry and optimizing the allocation of resources.

 

3. Heat Industry Internet

SAI’s creative chip waste heat utilization solution effectively utilizes the waste heat generated by the computing industry to provide heat services, uniquely and innovatively opening up a new path to reduce the cost of the heat industry. The general trend of the future is the comprehensive and rapid development of the computing industry, which inevitably generates the heat dissipation problem corresponding to the computing power. If all the heat generated by computing can be collected and utilized, it not only essentially solves the problem of large power consumption for heat dissipation, but also realizes the reuse of energy and promotes the energy saving and greening of the computing industry.

In the actual operation scenario, SAI is gradually establishing a heat industry Internet with computing waste heat as the link, completing the heat service with lower cost and higher value, effectively making up for the defects of the traditional heat industry with limited coverage and high comprehensive cost.

 

To sum up, SAI will always uphold the value of “energy efficiency acceleration, heat is like cold”, focus on the top strategic development direction of China’s energy calculation industry, and make every effort to create more value for users and the market!

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The Three elements of The Future Parallel World: Computing Power, Electricity and Heat

In 1900, Planck introduced the concept of energeticons to overcome the difficulties of classical theory in explaining the laws of blackbody radiation, which laid the cornerstone for quantum theory. Then, Einstein proposed the light quantum hypothesis in response to the contradiction between the photoelectric effect experiments and the classical theory, and successfully used the energetic subconcept in the problem of specific heat of solids, which opened the way for the development of quantum theory.

We previously proposed a macroscopic perspective i.e. understanding computing from the perspective of entropy: computing can be thought of as the entropy-reducing act of using electrical energy and raw data as raw materials to make disordered data orderly and valuable, with a one-to-one correspondence between computing demand and energy consumption.

So what does the act of computing look like in the microcosm? We divide computing into three main processes, namely, electrical energy transfer, chip computing, and heat dissipation. Based on quantum theory, we extend a new perspective.

First, the electrical energy is transferred to the chip through the wire, and this process is done by electrons. Based on quantum theory, it can actually be understood that the electrons surrounding the metal atoms are driven by energy to leap from one end of the wire to the other in turn to indirectly realize the rapid transfer of energy.

Then, the chip uses electrical energy to complete the computing task, the process of the chip’s software algorithm and hardware structure can be understood as the consumption of energy to encode, according to the encoding way to consume the electrical energy to produce a pre-desired result.

Finally, the chip will produce heat after completing the computing, the macrocosm performance is through the chip 100% of the electrical energy into more than 99.9% of the heat and a small part of the electromagnetic wave, while in the microcosm is to drive the electron constantly jumping change in the energy due to changes in the nature of the metal atoms around the electron can not continue to jump and heat in the form of energy to the surrounding environment (air) to transfer.

Based on quantum theory and relativity, we can extend many early physical concepts: the conservation of mass is the conservation of energy, various particles (atoms, electrons, photons) are different manifestations of energy, and all changes in energy tend to turn into heat and tend to stabilize.

Back to the macro world, we know that the development of society is essentially driven by energy (steam – electricity), the progress of science and technology is essentially to discover more energy and improve the efficiency of energy utilization, computing and computing power as a more efficient way to use energy will certainly play an increasingly important role in the future development of society. In the era of industrial revolution along with the discovery and utilization of oil, the largest giant ever born in the business world – Standard Oil Truss, we believe that in the future will certainly produce a similar giant to provide energy services for computing.

The current demand for energy is mainly in electricity, oil and heat, which are the basic elements to support the normal operation of society and normal human life, but what many people have not yet noticed is that our demand for computing power is now ubiquitous, and all services such as cell phones, networks and software are based on computing power, and the demand for computing power is growing exponentially, which is exactly why our country has proposed This is where the “new infrastructure” is important.

In addition to finding more energy supply (e.g. clean energy), energy as a finite and scarce resource, we have been trying to do everything possible to improve the efficiency of its use, so we see the emergence of new technologies in various fields, as well as in the field of computing: chips are also evolving to reduce the power consumption ratio. With technology and cost bottlenecks, in addition to improving efficiency, energy reuse is increasingly being emphasized. So we have seen the use of waste heat from high grade heat in industry, is there such an opportunity in computing? The answer is yes! Because people’s demand for computing power at the same time, behind the large demand for electricity and produce the corresponding amount of heat, these heat used to need to consume more electricity to dissipate heat, now we can collect them its to meet the heat demand, so that both the secondary use of energy and reduce the cost of demand from all sides.

From the perspective of quantum theory, people’s heat demand based on electricity is essentially the process of converting the electrical energy of electrons into heat energy, and chip computing is likely to be the optimal process to achieve this path because it can accomplish both the computing task and solve the heat dissipation demand of chips and people’s heating demand.

According to our previous theory of Energy Profit Efficiency (EPE) EPE = (revenue – energy cost) / time, society will evolve toward increasing energy profit efficiency. For example, the Internet and mobile Internet have been a large amount of information transmitted through the network, which not only saves the cost of information transmission and shortens the transmission time, but also the huge computing power can quickly process the massive amount of data to get more valuable information, which has undoubtedly greatly improved the efficiency of energy profit.

If we want to further improve the efficiency of energy profits, how should society evolve? In contrast, the pain points of our real life are mainly manifested in two aspects: 1. time and space is still the biggest limitation of human activities; 2. the growth rate of computing power is still unable to meet the exponential growth of computing needs.

From horse-drawn carriages to high-speed trains and airplanes to spaceships, the space and displacement speed of human activities have increased greatly, and the time required to move has been gradually shortened with the progress of technology, but airplanes are still late, and it still takes half a day to travel from Beijing to New York; the Internet links and stores a huge amount of information around the world, and powerful search engines can let you know almost everything that happens around the world at any time and anywhere, but AlphaGo can beat human Go masters, but it still can’t calculate the mystery of the entire 3 billion base pairs of genetic sequence and the countless stars in the universe. Technology, especially medical advances, has greatly extended the average life expectancy of contemporary humans, but everyone still faces aging and death, and once dead, all the information and consciousness in the brain will not be stored and perpetuated.

From the biological point of view, the processing process of human brain is similar to that of a computer, which is a process of different signals (visual, auditory, tactile, taste, smell) input to the brain, processed according to different compilation programs (logical thinking), and the result output, and this processing can be detected with instruments to detect the changes of different electrical signals; similarly, a small DNA stores a huge amount of biological information, and with enough Similarly, a small DNA stores a huge amount of biological information, which can eventually be compiled and expressed as a complete conscious human individual with sufficient energy support. Just like the plot in the movie “The Transcendentalist”, we can’t help but think that if there is strong enough computing power and advanced enough brain-computer interface technology, can human beings transfer their consciousness, thus breaking through the time and space boundaries of carbon-based life, and based on more powerful computing power to travel infinitely in the silicon-based world?

Back to the present, we have to consider, even if such a parallel world can one day become a reality, what are the necessary elements to drive its realization? In our opinion, whether it is the further evolution of the real world or the eventual realization of the parallel world, there are three basic elements necessary:

1. computing power. As time goes on, we will continue to generate sky-high amounts of data, requiring increasingly powerful computing power to process that data and generate more valuable information. Computing power is enabling a full range of traditional alternatives: information processing (manual to computer), information delivery (cart and horse to network), and value delivery (gold fiat to digital assets). Powerful computing power can process larger amounts of data in the same amount of time, while reducing the time and energy consumed to process the same amount of data. The computing power is so powerful that it can instantly simulate the entire planet in full detail, down to a single grain of dust on the windowsill of one of its inhabitants, and can calculate the full range of possible directions of change including where this grain of dust should float down.

The computing power is based on electricity and heat, the chip and its integrated computing power is like a compiled energy usage instructions, using electricity to process the data in a set way and feedback the results, while the electrical energy is all converted into heat and emitted into the air.

2. Electricity. The clean and sustainable nature of electricity, easy storage and transmission, and high energy density make it the most promising secondary energy source. From Internet messaging to electric cars and robotic arms, electricity is both the source of power for the digital world and is gradually becoming the core driver of the real world. The world is concentrating on promoting the full popularity of clean power generation and electric power substitution, and photovoltaic power, wind power and hydropower, as clean and sustainable power generation methods, will gradually become the main way of power generation.

According to the current development trend, electricity will become the most core end-consumption energy, and at the same time, as the basis of arithmetic power, the growing computing power must consume more electricity, so each link related to electricity production and consumption (power generation, transmission, storage and consumption) has a lot of space for further optimization.

3. Heating power. Theorem of thermodynamics is extended, we will find that human beings have been solving the problem of heat since the beginning: human beings draw carbohydrates from food and decompose them into energy in the body to maintain the continuation of life; in ancient times, the heating by fire makes protein easier to digest and absorb, and promotes the improvement of primitive human intelligence; biological survival needs heating and hot water, and the use of heat extends the boundary of biological survival in cold areas. Crops can continue to grow in the heated hut in winter, and humans can even soar in the space of the universe close to absolute zero; thermal power generation is the use of heat generated by fuel to promote the rotation of the turbine, but also faces the serious problem of unit cooling; power transmission to reduce resistance as much as possible, too much resistance will lead to the transfer of power into a large amount of heat, both a waste of electricity and cause the risk of fire; chip computing The large amount of heat generated by the chip needs to be dissipated quickly to ensure that the chip can continue to work stably.

More efficient heat dissipation and lower cost heat supply will continue to be the way of development and progress of human society, and the way to improve energy profit efficiency.

 

Based on such a concept, we at SAI have been conducting technology research and commercial exploration, and have launched our product SAI Energy Calculation Center, which is based on the chip energy technology to reduce the three core costs of computing power, heat and electricity, and SAI Energy Calculation Center can realize the triple network supply of computing power, heat and electricity and form a large energy calculation network, which is distributed in various regions of cities and places around the world. We believe that through our continuous efforts, we can reduce the cost of computing power, electricity and heat for more people and create more value for the society through the SAI Energy Center. We look forward to future technological advances that will enable human beings to make great leaps in computing power, electricity and heat, so that everyone can use cleaner and more affordable computing power, electricity and heat resources, and based on which we can truly have the opportunity to realize a more perfect and superior parallel world.