Mining in Iran: new Blockchain locks
The coronavirus seems to have receded and large countries have found time to tackle internal problems. One of these, quite justifiably for many, is Blockchain. The crypto industry continues to pose dozens of challenges for most governments. Iran is no exception, the authorities of which have disabled more than a thousand farms. Next, we will tell you what the blocking of equipment that produces cryptocurrency is connected with. So let’s get started.
What exactly happened?
Let’s start with basic theory. First, we will describe the context of what happened in order to understand what exactly led to the blocking of equipment. Iran is a fairly large state, one of the leaders of the modern Islamic world. However, like most countries in the Middle East, Iran fears pressure from the West. The state is wary of all new technologies. Even the Blockchain is subject to skepticism. Earlier, the country was ambiguous about the possibility of developing the cryptoindustry. Nevertheless, today’s actions have shown that Iran is not ready to give Blockchain to the hands of the people.
The fact is that the country obliges to register the equipment involved in mining. This is a rather lengthy and most often dangerous process. Iran can always prohibit the mining of cryptocurrency for a specific company. Legalization took place only last year, so the country has not yet found a sufficient number of specialists who would solve the emerging problems. That is why the state is postponing the independent development of the Blockchain for the time being and suspending the work of single citizens.
That is why industry users are forced to start working in the gray. An important fact is that mining in Iran is insanely efficient. The country has fairly cheap electricity. Let’s say for $0.01 you get a whole kilowatt. Thus, costs are significantly reduced. That is why users decide to mine mining without waiting for the results of checks. For example, today the country has suspended operation of as many as 1,100 farms. The owners did not apply for the relevant documents, but continued to work. The operation was stopped by a remote attack. It is not yet known what will be done with the violators.
What do Iran ‘s actions indicate?
In fact, this is a fairly indicative event. The news shows that most countries like Iran are not ready to develop the crypto industry. And only because of their own incompetence in some matters. The solution, obviously, will be to improve the technical knowledge of certain government officials. It is simply necessary to create separate divisions and ministries that will regulate the cryptoindustry. It is very easy to block farms and prohibit the extraction of currency without hundreds of documents. But it is much more difficult to legalize this business, to make it popular and profitable. And not only for miners, but also for the state. At the moment, only 624 mining licenses have been issued in the country. We are sure that there are many more people who want to start mining digital assets as soon as possible.