- Kraken’s Chief Technical Officer, Vishnu Patankar, has predicted a boom in DeFi usage
- In order to meet energy demands, Kraken is considering using nuclear power
- Patankar believes that nuclear power could better handle the growth of the crypto space
Kraken’s Chief Technical Officer, Vishnu Patankar, has predicted a boom in DeFi usage and has outlined the unique way Kraken plans to deal with it. In an interview with Coindesk, Patankar revealed that the company is considering partnering with energy providers that can supply nuclear power in order to fuel the kind of computing demands required by artificial intelligence (AI) and high-performance computing (HPC) firms. The CTO said that securing such power sources will be vital to securing the industry’s future, assuming the DeFi sector takes off as he believes.
Kraken Going Nuclear
Kraken anticipates a significant increase in its energy needs due to the expected boom in decentralized finance (DeFi), where running nodes for validators or transactions will require substantial energy, making nuclear power an attractive option.
Patanker argued that securing a reliable energy supply is essential for the 24/7 operation of Kraken’s data centers as demand from AI and HPC firms continues to surge. “With institutions moving into the crypto asset class and activity moving on-chain, the need for reliable fiat onramps continues to grow,” said the executive. “Bolstering our energy resiliency means we strengthen a direct avenue into the crypto ecosystem, supporting its continued growth.”
Kraken is exploring partnerships with energy providers to utilize nuclear power from small modular reactors (SMRs), which can be co-located with data centers and offer a solution free from space or weather constraints. Patanker said that Kraken is considering these reactors as part of its energy strategy in North America and Europe, noting that the constant energy supply provided by nuclear power is crucial to meet future demands, given the round-the-clock nature of cryptocurrency trading and the expected mass adoption of crypto over time.
Redundancy Against Local Power Grid Failures
Patanker noted other benefits of going nuclear, including not needing to rely on local power grids:
A nuclear backup means Kraken can continue to operate even if there was major disruption to local energy supply. It adds redundancy and protects our energy resiliency so we can continue to offer round-the-clock products and services to our clients globally.
Other renewable energy sources like wind and solar are weather-dependent, with energy storage presenting additional challenges.
While no final decision has been made, Kraken is seriously considering nuclear power through SMRs as a viable option. This approach could address criticisms of energy waste in the crypto industry, as nuclear energy might offer a more environmentally friendly solution.
