Alex Tapscott hails blockchain startup PermianChain as a digital asset revolution for natural resources

Alex Tapscott hails blockchain startup PermianChain as a digital asset revolution for natural resources

Alex Tapscott, author of Digital Asset Revolution and co-founder of the Blockchain Research Institute, hails Web3 and blockchain start-up, PermianChain for bringing the digital asset revolution to the natural resource sectors.

Chapter 7 is dedicated to how blockchain creates value through natural asset tokens (NATs), mainly in oil and natural gas. Mohamed El-Masri, Founder and CEO of PermianChain and CEO of Brox Equity, explains the mechanics behind energy tokenization within a blockchain-enabled ecosystem. 

El-Masri discusses how utilization of blockchain is changing the way exploration and production companies raise capital as well as how investors and consumers participate in a digital energy market with surplus or shortage. 

PermianChain’s solution is a digital platform combining a blockchain, decentralized cloud storage and Web3 compatible features that supports two forms of digital economics, one being a security token and the other being a utility token. Chapter 7 of Digital Asset Revolution also delves into how PermianChain introduces a digital midstream solution to powering bitcoin mining rigs through oil and gas operators. 

Tapscott states, “This is the kind of fresh thinking that this industry needs!”

Back in April 2020, reduced consumer demand caused oil futures to fall into negative territory, oil firms had to pay entities to take oil off their hands as temporary storage was exhausted. Additionally, increased political pressure and lack of commercial viability in some areas has caused natural gas assets and resources to be stranded or wasted (i.e., flared or vented), in both situations taking away economic benefit from communities while the latter is causing harm to the environment. On the flip side, current global energy demand is outstripping supply, causing marginal oil and gas fields to become commercially viable. Unfortunately, the lack of incentive for oil and gas firms to invest in stranded [or distressed] energy assets did not allow regional and global energy markets to make better use of such wasted resources, until now.    

“These challenges, while daunting, are the exact type that we can mitigate by using blockchain technology and proof of work infrastructure. We provide the gateway for the oil and gas sector to enter the world of DeFi, bitcoin and crypto markets by making contingent sources commercially recoverable. Making PermianChain the meta-grid for a digital energy economy, says El-Masri. 

PermianChain’s native token, the digital energy currency (DEC) and the first compliant natural asset security token (NAST), the BROX Token issued by Brox Equity, are live within the PermianChain ecosystem. 

For the first time ever, PermianChain will be showcasing an exclusive demo of its digital energy market and natural resources tokenization platform on the 9th of November 2022 at the Web3 & Blockchain World (W3B) in Toronto, Canada, co-hosted by the Blockchain Research Institute (BRI), a global independent blockchain think-tank, and MCI Group, the world’s largest engagement agency.

The GCC and MENA region very attractive destination for crypto mining

The GCC and MENA region very attractive destination for crypto mining

Crypto mining is an integral part of the development of crypto economies. As the MENA region opens up its economy to digitization and crypto-related activities and as the world is challenged by an ongoing energy crisis, MENA is probing to become an attractive destination for crypto mining.

While the biggest crypto mining markets are currently in the USA, China, Kazakhstan and Canada, the energy crisis and the crypto bear market could help the GCC become a leading crypto mining hub.

Mohamed El Masri, founder and CEO of Permianchain, which operates Bitcoin mining data centers in Canada using wasted energy, states, “The adoption and implementation of blockchain data center infrastructure can support the digital stability and financial security of the GCC region. Hypothetically, the GCC has the opportunity to attract close to $1.0 trillion in economic growth by laying the groundwork for powering the digital economy.”

El Masri confirms the main challenge is calling out the financial regulators, mainly in the financial free zones, to stop taking the “enforceability approach” and take a “regulate-first approach.”

Nonrenewable resources to boost mining 

El Masri also mentions that given that the GCC is an oil and gas-rich region, there is an abundance of natural gas energy being wasted each day. Notably, such gas energy supports the implementation and commissioning of low-cost power plants to attract bitcoin mining companies from all over the world to set up in the region.

According to him, this will allow the region to become a leader in providing field-generated electricity “to power the future digital economy all while reducing emissions and decarbonizing the GCC’s oil and gas sector.”

The World Bank has reported that the MENA region accounted for 40% of the world’s flaring, with Iran, Iraq and Algeria generating 75% of MENA’s flaring. Meanwhile, Saudi Arabia, Kuwait, UAE and Qatar have low flaring intensity.

Adopting new technologies

Munaf Ali, founder and CEO of UAE-based Phoenix Group, involved in crypto mining equipment sales and projects, believes MENA is fast moving toward crypto and blockchain adoption.

“The Middle East is fast helping the global diversification of jurisdictions which are friendly to operate in,” Ali states. “This goes for countries where crypto firms can set up, whether they are crypto exchanges or mining operations.”

Ali confirms that GCC governments have started to address this by recognizing these new business activities and are issuing licenses to crypto market participants.

The Phoenix CEO espoused other benefits, including job creation, the development of a green renewable energy industry, and the generation of crypto/USD for circulation inside the local economy which in turn boosts economic activity.

Growing interest in mining

UAE investment firms have also shown interest in crypto mining investments. Nabyl Al Maskari, executive chairman of Al Maskari Holding, in a panel discussion during the Security Token Summit in June 2022, noted that there will be significant crypto mining investments happening in the UAE.

“We will have significant crypto-mining investments because the UAE is a low-cost energy producer,” Al Maskari certifies. “We are in the solar belt and have nuclear power with two reactors online. We can as such mine green Bitcoin or other tokens that come out.”

During Binance Week 2022, Khalifa AlJaziri, AlShehhi, Commercial Affairs Regulatory Sector Projects advisor at the Ministry of Economy in UAE, claimed that the Dubai World Trade Center Authority (DWTCA) would be legislating the crypto mining sector. He stated, “We are setting the guidelines and rules needed to regulate crypto mining within this crypto framework.

The UAE is not the only country that has shown interest in crypto mining. Oman Investment Authority (OIA) took part in a $350mn equity round in Crusoe Energy Systems. The US firm helps oil and gas producers cut flaring by using stranded natural gas to power cryptocurrency mining. Crusoe systems set up operations in Oman as well. 

Pierre Samaties, global head of Crypto Economy and Energy, reaffirmed that Bitcoin mining in the region is growing.

“Given we have a huge difference between the summer load curve and the winter load curve, Bitcoin mining helps to support renewable energy investments to increase utilization of the asset by using it during downtimes for Bitcoin mining,” Samaties says. The executive says this helps to balance the energy system.

Samaties also affirms that Bitcoin mining is seen as a strategic asset, a cornerstone for building a crypto economy in the region.

For those who would like to read or share this article in arabic it is also on Cointelegraph MENA 

Environmentally friendly Crypto mining Hosting company enters UAE with UAE SEED Group

Environmentally friendly Crypto mining Hosting company enters UAE with UAE SEED Group

Even before the UAE and specifically Dubai release their crypto mining regulations, companies have already started operating in the country. Recently 2Bminer, crypto mining hosting center with operations in the UAE, Czech Republic, and USA, signed a partnership agreement with UAE Seed Group, a company of the Private office of Sheikh Saeed Bin Ahmed Al Maktoum.

The announcement and the fact that 2Bminer is present in the UAE is not surprising. Prior to this, UAE-based Phoenix Technology Consultants signed a $650 million order for crypto mining rigs as part of its expansion plans in UAE and MENA region, while a UAE Sovereign wealth Fund is building one of the biggest crypto mining farms in the region under the strategic guidance of Roland Berger.

It would seem that 2BMiner is espousing its ecofriendly nature. As per 2Bminer website, their crypto mining machines mainly use hydro, wind and solar power. Sustainability is something that the UAE government is keen on. The company offers the sale of mining machines and as well as the placement of those machines in their centers and under their management. In short 2Bminer offers mining hosting services.

As per the press release, the agreement with UAE SEED group, SEED will help 2bminer.com expand its operations in the Emirates and the wider Middle East, reach the right audience, access top decision-makers in the government as well as private sectors, and market their crypto mining products and services effectively in the region.  While 2Bminer will focus on transforming the crypto mining market of the UAE by providing the best machines, technical support, and global hosting centers to make the minting of cryptocurrencies easier and more profitable. 

Hisham Al Gurg, CEO of Seed Group and the Private Office of Sheikh Saeed bin Ahmed Al Maktoum, said: “As cryptocurrencies are becoming increasingly popular, people are eager to invest in them and make profits. The UAE wants to establish a crypto mining ecosystem, offering a growth-oriented environment to FinTech companies and world-class mining services to clients in the region itself. Companies offering mining equipment, hosting services, world-class facilities, and good returns to investors at globally competitive rates hold huge potential in the Emirates’ digital economy.”

Jakub Hlavenka, CEO, 2bminer.com, said: “We are pleased to enter into a mutually beneficial partnership with SEED Group. The collaboration will help propel our business interests and goals in the MENA region through the group’s support and a strong base of regional connections. We are committed to providing the best platform for crypto mining in the region.”

This is not the first agreement SEED group has signed with Blockchain and crypto entities. Over the years, UAE SEED Group has announced many such partnerships examples include Ubirch, a German blockchain cyber security specialist, DiamondBack, creators diamondbacked stablecoin, DeepDive Technology, OwlTing for Blockchain ecommerce solutions for travel services, Aergo Foundation and Blocko, Fantom Foundation and Liquefy a security token solution provider.

Of those companies, Liquefy no longer seems to exist, DiamondBack has no presence in UAE nor does it seem to be active. As for Ubirch, they are in the UAE but no major announcements have been made thus far along the lines of their activities in the UAE.

As for OwlTing, it still seems to be active in China and Asia but no activities in the MENA region. Then there is Fantom Foundation which has seen some controversy over the past year despite its strong presence at Consensys 2022 and announcements that TrustWallet now supports Fantom.  

As for DeepDive, it has built partnerships in the UAE. It is a partner of UAE Bedu which encompasses an NFT factory, and metaverse solution provider. 

So in short, while SEED has partnered over the years with several entities in the Blockchain and crypto sector we have yet to see strong hanging fruits of these partnerships on the ground in the UAE. Even though some have managed to make some inroads. The recent one with 2Bminer might be a game changer for SEED, we will just have to wait and see.

Central African President sets up Bitcoin mining farm in UAE

Central African President sets up Bitcoin mining farm in UAE

News spread in May 2022 that Central African President Faustin Archange Touadera was travelling to the UAE to oversee the launch the crypto mining company. This came after Central Africa affirmed Bitcoin as a legal tender in the country.

The website African Intelligence was the news platform that mentioned the President’s visit to UAE on May 12th 2022. LeMonde News platform stated that due to lack of infrastructure in Central African state, the mining company for Bitcoin would be located in Dubai.  Nothing else was reported on this, and no official comments were made on this by UAE officials. 

This comes at a time when VARA (Virtual Asset Regulatory Authority) in Dubai UAE, stated that it would be regulating crypto mining operations. Already a sovereign wealth fund in Abu Dhabi is building one of the world’s biggest crypto mining farms with strategic advisors, Roland Berger. 

In addition US Crusoe Energy, which mines Bitcoin using wasted natural gas expanded into the Middle East specifically Oman and UAE after it received investments from UAE Based Mubadala, sovereign Wealth Fund in Abu Dhabi and Oman investment Authority. The total investment received by Crusoe was 350 million. Crusoe as per an article in CoinDesk will initially open an office in Muscat Oman followed by an office in Abu Dhabi.