bitcoin by Ian Romaker April 22, 2021
Cryptocurrency and climate crisis do not have to belong in the same sentence. As a matter of fact, there are several viable alternatives to the Bitcoin behemoth and crypto overall that will benefit our environment as a whole on this Earth Day.
The key factors we love about crypto are wreaking havoc on the environment on Earth Day: decentralization, self-sovereignty, limited inflation, peer-to-peer payments and censorship resistance.
It will take some fancy footwork on the backend of the blockchain to make this currency truly sustainable.
Bitcoin has emerged in a major way recently and has ballooned past any bubble that might have seen it pop in the past.
Now, the question remains: how can we continue to delve into cryptocurrency on Earth Day without contributing to rampant carbon emissions?
This Earth Day, many countries are making it an imperative priority to go “net zero emissions” by a certain date in the future. In the cryptocurrency atmosphere, the majority of companies are aiming to reach net zero emissions by 2040.
By 2030, crypto companies hope to transition all blockchains into a renewable sector. However, this task is much easier said than done.
The reason being is that Bitcoin was designed to be an inefficient player in the crypto game. Since Bitcoin operates on the proof-of-work model it relies upon a hash rate.
A higher hash rate means that there is a higher chance to mine the next block in the chain which in turn generates greater income. Bitcoin is a strategic catalyst for true cultural transformation, it just has started off on the wrong path.
It is so important that we all gather on the same page and come up with a clear cut Bitcoin alternative. Reason being, the more competition for crypto rewards that there is, the more security that follows.
Seemingly, everyone gravitates toward Bitcoin for this reason and the fact that it has economies of scale. These economies lead to cheaper capital, lower maintenance costs, and the ability to utilize negotiating power with energy suppliers.
Basically, Bitcoin operates from the blockchain. The blockchain exists in layers of mining rigs that work around the clock to solve complex math problems. Major crypto gurus argue that the age-old systems that underlie current fiat banking systems use more energy than crypto.
But, crypto is the new kid on the block so everyone is trying to kick them to the curb and point out all of their flaws.
One thing is for certain – cryptocurrency could do well with being much more energy-efficient. China’s official position on crypto has been harsh in the past, only recently loosening up a bit. So how might the crypto community turn things around on Earth Day?
It is going to come down to the type of work model the blockchain functions upon. Typically, a transition from the proof of work model to the proof of stake model would do it.
Proof of stake models such as Nano works in unison toward a consensus through voting, not energy usage. 51 percent of free-shifting, feeless votes are still required to reach Nano transaction validity.
All in all, cryptocurrency has been taking off and emerging as a disruptor in the financial world. To ensure its longevity, people in the space must unite for the greater good and come up with a way to operate in earthly and energy-efficient manners.
There is no better time to be energy-efficient in crypto and in anything than on Earth Day.