After the creation of Bitcoin in 2009, many other cryptocurrencies have emerged. Some kasyno online bonus bez depozytu sites are accepting these crypto coins as a payment method. Now more than ever, people are investing in cryptocurrencies. There are videos across the internet explaining the benefit of buying and selling cryptocurrencies. At first, many banks feared that Bitcoin and other coins would cause competition. Now some banks accept crypto-related transactions.
The governments of various countries are not sure how to control crypto-trading but are not completely against it. Although cryptocurrencies are the safest way to transfer money online, mining affects the environment. To effectively deal in Cryptocurrencies without destroying nature, we need sustainable solutions. So can we create a sustainable cryptocurrency world? We will try to answer that in the next paragraphs.
How does the blockchain work?
To understand the root of the problem, you must understand how the blockchain works. It is a digital accounting register that thousands of miners keep. Miners are accountants who ensure that cryptocurrency transactions run smoothly. They have to compete to be the first to record a new payment in the blockchain. Each record they register earns them bitcoins.
The way they do their work is known as Bitcoin mining. The process consumes so much electricity that people who worry about environmental conservation have valid concerns. According to Digiconumist, the Bitcoin network consumes around fifty-one billion kilowatts/hour throughout the year. Other research claims that the actual consumption of electricity when mining Bitcoin is 78 kilowatts per hour every year.
Experts have equated this consumption rate to a whole country’s power expenditure in third-world countries. So far no calculations are estimating the total electricity consumption rate of all cryptocurrencies combined.
Proof of stake vs. proof of work mining processes
Some providers of cryptocurrencies claim to offer eco-friendly coins. In truth, some of them only want to sell and make profits. When looking for sustainable coins, focus on two options: proof-of-work and proof-of-stake. Researchers claim that the Proof-of-stake mining process consumes 99.95% less energy than the proof-of-work process.
When mining Bitcoin via the proof-of-work process, miners utilize machines called ASICs. These consume a lot of energy when processing complex codes. They also require the installation of cooking systems and air conditioners to keep running well. Although no one can manipulate the Bitcoin network, it consumes a lot of electrical power each year.
Ethereum and other cryptocurrency networks use the proof-of-stake mining process. Therefore, miners bet their shares of coins to validate a transaction. Those who do not lie receive awards and those who do face a penalty. These miners have no reason to use energy-draining computers to validate transactions. Hence, proof-of-stake processing is a more sustainable cryptocurrency network than the proof-of-work network.
The environmental impact of power consumption depends on the source of energy a cryptocurrency farm uses. It can be thermal energy, solar photovoltaic panels, or the burning of fossil fuels. Bitcoin, which uses the proof-of-work mechanism, burns fossil fuels. No wonder its carbon footprint reaches 36.95 megatons per year. Burning fossil fuels is not the way to sustain cryptocurrency networks. Better considerations may be electing wind turbines, solar panels, and other renewable energies.