Computing power and bitcoins
"The plan to sell home data centres to customers as heat sources sounds innovative, but seems to be missing some key financial points (7th February, pg20). Each customer will need to seek the extra computing power online. The cost of a high-bandwidth connection to the internet and an intermediary to handle the processing tasks is not mentioned. More importantly, the article doesn't mention Moore's law, which states that computing power doubles every two years [Although this law isn't as straightforward nowadays with processor speed limits, it is still roughly true]. This means that the expensive kit a Project Exergy customer buys will roughly halve in value every two years. Also, companies buying the processing power will invariably switch to newer users with newer and faster kit. Early Exergy adopters will be abandoned, leaving them with nothing more than [wildly] expensive electric heaters."
As can be seen from my letter, I wasn't impressed with the strategy of Project Exergy described in the article, but I think their sentiment is positive. As the article states, 'it takes the energy from 34 coal power plants to sustain all digital activities in the US every year'. That's an awful lot of CO2 and innovative ways to reduce this consumption are most welcome, but I think their current strategy isn't the answer.
How about this for an alternative approach? Instead of each household installing servers that remote companies can use for processing tasks, why not set up the servers to mine bitcoins? Bitcoins are created by running an algorithm to solve a mathematical equation for certain values. In other words, processing time is converted into units of digital currency. If households set up their Exergy servers to do this work, they would not need to encourage remote clients to use their machines and they would therefore not need an intermediary. They would also not need to transmit lots of data and would therefore not need a fat pipe to the internet. In addition, their servers would still be able to grind out bitcoins as the years went by, just at a relatively slower rate. These households would therefore not get 'dumped' by processor clients switching to new customers.
It's still not ideal, but it's hard to think of any currency accumulation that isn't energy intensive. Gold is inert and non-toxic, but it takes a lot of effort and power to get it out of the ground and refine it. Also, its mining processes are hideously bad on the environment. Much of the wealth of the modern world is effectively petroleum turned into money, which isn't much good either. By comparison, generating bitcoins while heating your home doesn't seem too irresponsible. If I can, I'll suggest the idea to the Project Exergy people.
Apart from all that, I'm still immersed in writing a science-fiction comedy novel. I'll try and knock out an article on something interesting soon, when there's a natural gap in the writing. Until then, if you're in the Northern Hemisphere, I hope you're enjoying the longer, sunnier days! :-)