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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.