Kraken, one of the largest and most popular Cryptocurrency exchanges in the world has recently announced its intention to use nuclear energy to run its data centres.
Let us look more closely into what led Kraken to consider such a proposal and what the future might look like for the company with the actualization of the plan.
The details about the announcement
In an interview attended by Vishnu Patakar, the Chief technical officer of Kraken crypto exchange, he revealed the plans by the management to consider utilizing nuclear energy sources to power Kraken’s data and server houses.
The new move was said to be in response to the larger energy requirement following the latest boom in decentralized finance services.
In the interview, the CTO said that the company has been considering partnerships with energy providers who will be able to supply nuclear power with the help of small modular reactors (SMRs)
These modular reactors could probably be set up in close proximity to the data centers without any weather or space constraints said Patankar
Speaking about the company’s future energy objective, the CTO stated, “Bolstering our energy resiliency means we strengthen a direct avenue into the crypto ecosystem, supporting its continued growth.”
During the later stage of the interview, he also talked about the rapidly evolving and highly energy-demanding changes that are taking place in the industry with the introduction of AI and high-performance computing (HPC).
Looking at the working nature of the Crypto markets exchanges will have to have a constant supply of energy to facilitate millions of trades that happen every minute.
It is due to this high power demand that Kranken has decided to consider going in this direction, also said Patankar.
Furthermore, he also added that the new facility will help Kraken’s exchange continue its functioning even in times of power outage or disruption in the main gridlines.
The announcement from the Kraken crypto exchange comes in the wake of a time when other similar companies have also expressed interest in considering such energy backup options to support their network.
One such example of another company that has been known to consider a similar proposal is Amazon Web Services.
Being one of the world’s largest cloud computing service providers the company also feels the need to address the increasing demand for power and computability by making sure that their data centers can be powered up 24/7 and can provide uninterrupted service to their customers.
The CTO concludes by saying that the decision to go with nuclear energy was taken after considering other sources of energy such as Wind and Solar.
However, the decision has not been finalized yet as of now but one thing that we can say with certainty about the new initiative is that it will be a game changer for the wider cryptocurrency and Decentralized finance industry.
In the next section let us look at some of the potential benefits that the move will bring to the industry and other crypto service providers.
Benefits of the move
One of the major benefits of the new move is that it will finally tone down the criticism that most people have about the crypto industry saying that it wastes a lot of energy and resources.
This new initiative will hopefully reduce that complaint and potentially lead to wider adoption of such technology in other industries and companies as well.
As more and more energy-intensive technologies such as AI take over such fields it is important that there is an adequate supply of power to meet the energy demands for these technologies to let them grow and function properly.
One other added benefit we can see is that this will finally open up a space to have a conversation about the widespread consideration of nuclear energy for our day-to-day energy needs.
Nuclear energy has been seen as a hard subject to talk about due to the concerns of many about its potential side effects and other dangerous aftermath.
If companies start using nuclear energy to their advantage this could in the foreseeable future help in its larger acceptance and adoption.
Final Thoughts
The recent announcement by the Kraken crypto exchange is expected to generate more interest among the crypto community in considering Kraken’s platform for their trading partner with regards to the promise of smoother functioning and round-the-clock service to be provided by them.
The move will also likely encourage other companies to come up with innovative solutions to solve their needs at present or in the future.
Overall by looking at the market reaction to the move, we can conclude that the initiative will be widely appreciated by everyone including their users.
