Bern, 17 December 2024
The Innovation Booster Blockchain Nation Switzerland (IB BNS) shares one to two success stories a year. Within this format, the IB BNS allows successful teams to present their unique idea and elaborate on how the fund and network from IB BNS, which is powered by Innosuisse, helped to develop their idea. For this success story we interviewed Dorian Schlaefli from the idea Data Center @ Home. To know more about his success, you can read the interview below.
Innovation Booster Blockchain Nation Switzerland (IB BNS): What problem are you solving with your idea?
Dorian Schlaefli (DS): We aim to provide a sustainable and cost-effective alternative to traditional home heating solutions, addressing the high costs and environmental impact of fossil-fuel-based systems. With over 40% of Swiss houses still reliant on fossil fuels, the limited availability of affordable, easy-to-implement alternatives to heat pumps underscores the need for innovative solutions for a greener future. Indeed, the high costs of heat pumps make amortization nearly unachievable without subsidies.
IB BNS: Which solution approach have you chosen? What makes your solution approach unique?
DS: Imagine turning the energy-intensive process of bitcoin mining into a sustainable solution for your home. Bitcoin mining relies on powerful devices called ASICs to solve mathematical problems and validate transactions. These devices consume vast amounts of energy, with nearly 99% of it being converted into heat. What if that heat, instead of going to waste, could be redirected to warm your home or water?
Our solution, Data Center @ Home (DH System) recovers heat generated by ASIC devices used in cryptocurrency mining, which can then be used to heat homes and water. By integrating this approach with solar panels, our system creates a circular energy loop that reduces fossil fuel dependency by up to 45% and even generates cashback for homeowners. This hybrid model, utilizing ASIC and renewable energy, is cost-effective and requires no major infrastructure changes, making it therefore a unique and accessible alternative.
Customers will not need to manage any cryptocurrency assets, as the DH system assumes all associated risks. While ASIC devices are installed in your home, you won’t have to deal with the mined bitcoins or perform any maintenance. You’ll have an annual contract for that as it’s done with heat pumps or gas furnaces. Instead, you receive cashback for hosting the device. This means that when you heat your home, the heat generated by the ASICs is yours to use at no cost, as it’s powered by your solar panels. Additionally, the DH system pays you each time the heating system is in use, as we earn bitcoin during its operation. This process accelerates the amortization of your heating system, making it both cost-effective and convenient.
IB BNS: To what extent does the Innovation Booster Blockchain Nation Switzerland support you in this?
DS: The Innovation Booster Blockchain Nation Switzerland has provided us with essential support through the grant from Innosuisse, allowing us to develop two additional prototype iterations within five months. Without this grant, we might still be working on the first or second iteration. This funding enabled us to conduct more extensive testing, refine our design, and achieve the final form factor for our prototype. Additionally, it helped us align our prototypes with regulatory standards, ensuring compliance and technical viability. This support has been crucial in validating our approach and preparing our solution for real-world applications.
IB BNS: What role does open innovation play in your work?
DS: Open innovation plays a crucial role in our work by embracing the principles of openness, collaboration, and meritocracy – values also central to the bitcoin ecosystem, which is built on open-source foundations. In our approach, open innovation allows us to focus on ideas and achievements rather than traditional, closed-off methods, fostering a meritocratic environment where the best ideas and solutions can thrive. This mindset aligns seamlessly with our project’s goals, driving us to create a solution that benefits from collective input, shared expertise, and a transparent development process.
IB BNS: How has your team developed since the start of the project?
DS: Our team has grown in technical expertise and practical experience. Starting from a DIY working setup, we have progressed to creating a working prototype and have established partnerships with local companies for plumbing and electrical installations. This journey has also strengthened our core team's skills in business development, technical problem-solving, and system design.
IB BNS: What is the next goal you would like to achieve with the funding from the Innovation Booster Blockchain Nation Switzerland?
DS: Our next goal is to develop a modular system using an open-frame 19-inch server rack, which offers a cost-effective solution with a nearly finalized form factor. With this funding, we plan to scale our prototype, secure a steady supply of ASIC devices, and optimize our plumbing system for broader deployment. These advancements will be essential in preparing our solution for commercial roll-out.
IB BNS: What is your overarching goal (for the future)?
DS: Our vision is to revolutionize home heating by making it economically viable and environmentally sustainable. By 2025, we aim to have a commercially ready product that not only reduces gas consumption by 45% but also significantly cuts CO₂ emissions on a global scale. This solution also has the potential to decarbonize bitcoin mining by using renewable energy sources, which in turn contributes to making bitcoin more decentralized and secure. By deploying and securing bitcoin in this innovative way, our solution offers a unique model for funding renewable energy projects, helping to amortize energy investments and accelerate the transition to a sustainable energy future. Our long-term goal is to expand this solution across Switzerland and internationally, setting new standards for sustainable home heating and renewable energy integration.
IB BNS: What is the added value of your project to Switzerland as a country?
DS: Bitcoin began as a peer-to-peer electronic cash system, but its characteristics are more like gold, the oldest asset we know. Gold has historically been the best at storing value over time and bitcoin is aiming to achieve the same. It is becoming increasingly rare over time, which makes it a valuable reserve asset and a hedge against inflation. Switzerland, known as a gold nation, has partly built its economic success on its gold reserves alongside strategic asset allocation. Failing to establish a strategic reserve of bitcoin could be a missed opportunity. Such reserves are key to mitigating the risk of Switzerland’s economy falling behind, as it was the case not so long ago in the 19th century.
The energy transition is a big deal, and we cannot afford to miss the boat. Counting only on subsidies is not realistic in the long run—they just won’t hold up. People tend to ignore the financial side of sustainability, but if it is not economically viable, we will not achieve our goals.
DH system aims to cover both of these aspects: bitcoin accumulation within Switzerland while accelerating the energy transition to reduce reliance on fossil fuels.