Part of the new dramatic fall in the cryptocurrency markets may certainly be attributed to the environmental issues raised by the likes of Elon Musk and many others regarding the viability of blockchain projects that are contributing to large carbon footprints. On the other hand, the blockchain space is full of innovation and some projects have leveraged this to become far more energy friendly.
Whatever the industrial industry, an increasing significance for environmentally friendly processes is becoming increasingly more relevant in a world that is already seeing first hand the damaging global impact caused by human failure to take our environment into account and use greener technologies.
In the blockchain industry, poor use of electricity has come sharply into focus in recent weeks. Bitcoin continues to be held up as a monster energy user, with more than the entire energy requirements of a mid-size nation.
It might be claimed that this huge use of energy is necessary, given that Bitcoin is a much-needed safe haven for those seeking to exit an present monetary system, limping along on life support, together with inflation and other variables possibly causing an impending, complete, and catastrophic meltdown.
If we only limit the conversation to environmentally friendly blockchain projects?
The blockchain and cryptocurrency industry does need to clean up its own act. There are always ways to supply cleaner energy and to restructure consensus approaches in order to vastly decrease the effect of mining. However, as much as the conventional finance system goes, what would be the environmental comparisons there?
We don’t hear any voices raised in issues over the banking industry. But, according to a report last month by Galaxy Digital Research, this sector uses more than double the energy of their Bitcoin network.
Nevertheless, the simple fact remains that it’s not only all about Bitcoin, along with other blockchain projects will need to clean their act up.
A transfer from Proof-of-Work into Proof-of-Stake
Proof-of-Work and Proof-of-Stake are equally consensus mechanics, and they confirm the transactions on blockchain without a demand for a third party. Bitcoin works on a Proof-of-Work consensus, and it can be a strong and stable algorithm. But, it does entail a huge use of electricity for miners to solve each cryptographic puzzle and claim the Bitcoin rewards.
But, due to the large amount of transactional throughput required on the ETH blockchain, ETH developers are currently transitioning to the Proof-of-Stake model.
The more you bet, the more opportunities you will win coins in every specific block.
Therefore, without demand for high energy consuming mining rigs, the Proof-of-Stake consensus model has a considerably lower energy cost.
Proof-of-Authority is another consensus algorithm which doesn’t require mining work nor staking. A limited number of block validators take care of the verification process, but decentralisation suffers in this model because it does rather resemble a centralised database.
Other consensus algorithms include Delegated Proof of Stake (DPoS), Proof of Elapsed Time (PoET), Proof of Burn (PoB) along with various other innovative models.
One of those consensus algorithms providing a more eco-friendly alternate is Dusk Network’s SBA. The energy efficiency, privacy, accessibility, and rate required by Dusk Network had to be catered for by way of a modified, PoS form consensus algorithm.
Therefore, Dusk Network created its very own in-house consensus algorithm. For much more on exactly how this works see the Dusk Network Consensus Algorithm webpage here.
There are 15 distinct objectives, all of which work towards the UN aim for”sustainable growth to enhance human lives and safeguard the environment. ”
In its core aims, Dusk Network meets goals 9 (industry, innovation, and infrastructure) and 10 (reduced inequalities – financial services and applications for everybody ). In addition, as a result of what Dusk Network does, it also contributes to goal 4 (quality instruction ), and very importantly, goal 12 (responsible consumption and production).
It could definitely be argued regarding the unfairness of leaders inside the present monetary system, when they point the finger in Bitcoin along with other cryptocurrencies, in relation to their use of electricity and the resulting improper carbon footprint they leave.
As mentioned before, hardly any mention is made, and has been made, of the huge use of electricity by the banks and the gold industry. However, it should not be a case of”but they’re worse than we are”.
Blockchain projects are at the cutting edge of innovation and contain the cleverest minds. By following such cases, and by mimicking renewable energy, the blockchain sector should be able to emerge from the present cloud of environmental wrongdoing, and show it may set its house in order by beating these issues.
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