Blockchain firm Bitfury will develop a bitcoin mining center in Paraguay. The new mining operation is in partnership with Seoul-based research and development firm Commons Foundation.
The collaboration is backed by the government of Paraguay, whose goal is to make the South American country a cryptocurrency mining hub.
The new center, which is a part of Commons Foundation’s “Golden Goose” project, will help to facilitate the innovation of blockchain technology and cryptocurrencies across Spanish-speaking countries. Bitfury will provide product and technical support for the project.
The facilities used for the implementation of the mining center will sit on about 200,000 square meters of real estate, and it will be powered by two hydroelectric power plants — Itaipu, one of the largest power plants in South America, and the Yacyreta power plant. Paraguay is known for its supply of cheap and available electricity. At one point, the country generated so much hydropower its factories could barely absorb them, forcing the state to sell the surplus units to neighboring countries at below-market rates.
The Golden Goose project is backed by both the government and tax authorities of Paraguay. The mining operations being developed will also benefit from tax relief, an incentive added to encouraging bitcoin mining operations in the country.
The site will also be powered by BlackBox AC, a mobile data center owned by Bitfury. The data center provides an amalgamation of efficient design and low cost, which is expected to provide for more effective and affordable bitcoin mining.
John Mercurio, chief communications officer at Bitfury, told Bitcoin Magazine that Bitfury's mobile data centers have the capacity needed to operate a bitcoin mining center at scale.
“Bitfury’s BlockBox AC mobile data centers have the capabilities of a full-size bitcoin mining datacenter, making this the ideal solution for mining bitcoin on a large scale with ease. The efficient design and low operating cost of the BlockBox AC datacenter make bitcoin mining more productive and affordable, and allow for the easy expansion of bitcoin datacenter sites.”
The project was also lauded by Sandra Vera, a Paraguay-based attorney who acts as legal counsel to the Commons Foundation. According to Vera, the exploration of emerging digital technologies is a priority of the government of Paraguay, and an alliance with innovative and technologically progressive companies is sure to provide a wide array of economic benefits for the country as well.
The total number of mining centers to be opened under this project will be determined by Commons, as the firm is expected to provide further details as time goes on.
“We are looking forward to our project in Paraguay with the Commons Foundation, and we believe that this site, powered by Bitfury’s innovative hardware, will help decentralize and further secure the Bitcoin Blockchain for its users,” Mercurio added.
Jimmy has been following the development of blockchain for several years, and he is optimistic about its potential to democratize the financial system.