Homegrown crypto startup in Rohtak, Haryana keeps hope for the future

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New Edge Soft Sol Pvt Ltd, is a cryptocurrency startup founded by Pardeep Narwal (fourth from left)

Rohtak in Haryana, known as the country’s dairy hub, today mines (or rather mints) cryptocurrency, using a mining farm with over 300 graphics processing units (GPUs), costing them a whopping bill. electricity of Rs 3 lakh per month.

New Edge Soft Sol Pvt Ltd, founded by Pardeep Narwal, is located close to the city’s former Palika Bazaar, where three engineers tend to Ethereum mining machinery 24/7 in different shifts . A three-story building houses their office on the first floor, the platforms on the second, and the engineers’ quarters on the ground floor.

Mining is basically validating crypto transactions on the blockchain, a public ledger system. It not only validates but also secures the system. Computers around the world can do this by Proof-of-Work, that is, by solving a complex algorithmic problem. But this requires speed and strength of the system.

Pardeep, 34, a gold medalist in Mr. Tech, kicked off the adventure during the pandemic with his wife Jyoti Lamba and college friend Monu Nagar. Not only do they mine for themselves, but they also host customers on their machines who want to invest but don’t have the infrastructure.

This 14 Gigahash data center consumes 35,000 units of electricity, resulting in a hefty electricity bill every month. A large turbine installed on their terrace sucks hot air from the ducts installed above the rigs and another cooler brings in fresh air from outside to maintain the temperature.

Rig is an arrangement of hardware elements: specially designed motherboard, server, GPU and internet connection, necessary to perform cryptocurrency mining.

A small room attached to the mining farm room is a control unit where engineers monitor different factors of a rig, i.e. the client it is working for, temperature, output, etc. .

“I studied and grew up in this city, that’s why I started the farm here,” Mr Narwal said when answering a question about why he didn’t move it to another city. metropolitan like Delhi or Mumbai or elsewhere. even Bengaluru, known for its technological facilities.

But there is also a business strategy behind choosing Rohtak as a location. Rental properties are much cheaper in the city than in other Tier A cities, but the yield is still the same as in any other major city. Pardeep has worked on various government and non-government engineering projects and now brings his knowledge for the integration of Blockchain in government projects.

In the Union budget, Center had announced that crypto-mining infrastructure would not be considered an acquisition cost and therefore would not be allowed as a deduction under computer law.

New Edge Soft Sol doesn’t feel too demotivated by this, as they believe in keeping their cryptocurrency from mining and therefore realizing its benefits over a long period of time.

Nagar hopes the government will establish better rules to regulate this space and also align with international forces.

If your question is: can I start mining at home? The answer from their team is a big “Yes”. But, you have to have a strategy, a crypto and a goal in mind. Because you don’t want to spend more resources than you earn. As the blockchain ages, the complexity to solve problems also increases.

This means that you spend more energy resources. So, is mining profitable? Mr. Narwal responds to this question by saying that “Installation and infrastructure costs are reduced now because the devices are not as expensive as they were five years ago. So the lump sum is not unaffected”.

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