Ecology and Crypto-From Fossil Fuels to Green Energy
Discover How Green Energy and Sustainable Mining Methods are Transforming Cryptocurrency Mining
This post can be read in Tocsin Magazine and all Medium members can read the full article here.
Introduction
Since Tuesday I gave priority to a sports article — after all, Croatia (my homeland) won a silver medal at the World Handball Championship — I thought it would be a good idea to write about cryptocurrencies today.
In terms of ecology and cryptocurrency mining, there is a fierce debate between the opponents — those who claim that mining is an environmental catastrophe — and the proponents, who argue that crypto mining does not pose as great a threat to the environment as some believe.
What are crypto mining and PoW?
The very first cryptocurrency was Bitcoin, which is mined using the Proof of Work (PoW) method. In simple terms, PoW means that miners use their computers to solve complex mathematical problems; the first to solve the problem gets to validate transactions, thereby creating and appending a new block to the blockchain, and in return receives a cryptocurrency reward.
Imagine this process as if miners were racing to find the fastest way to extract a “golden block.” The miner with the best equipment who offers the fastest and most accurate solution earns the right to mine and keep that piece of gold.
This process requires enormous amounts of computational power and, consequently, vast amounts of electrical energy. This brings us to the central ecological concern: if the electricity needed to run crypto-mining rigs comes from coal, oil, or any carbon-based fuel, the pollution produced is directly proportional to the energy used.
Critics of crypto mining — and especially of the PoW method — argue that the cryptocurrencies mined are not worth the environmental damage they cause. They are, in part, right. However, the energy powering these rigs does not necessarily have to come from carbon-intensive sources; instead, it can be derived from so-called “green energy” sources such as solar power, hydroelectricity, wind energy, geothermal power, or even tidal energy.
As we can see, even the PoW method of cryptocurrency mining is not inherently harmful to the environment. Moreover, there are many alternative mining methods where the environmental impact is reduced to nearly a minimum.
Sustainable Approaches in Blockchain Technology
Due to growing concerns about environmental degradation, global warming, and climate change in general, alternative mining methods have been developed to reduce the ecological footprint of cryptocurrencies. Some of these methods include:
- Proof of Stake (PoS): In this method, users (or “validators”) invest a certain amount of cryptocurrency (for example, 32 ETH) that they wish to mine. They then “stake” this amount as collateral. In return, they are randomly chosen to validate blockchain blocks, earning transaction fees as rewards. The Ethereum network is an excellent example of PoS mining in action.
- Delegated Proof of Stake (DPoS): Originating from the PoS model, DPoS involves validators — known as delegates — who are elected by token holders. Once selected, these delegates validate transactions. The process is similar to PoS but with the additional step of pre-election by vote. EOS, TRON, and SUI are well-known networks using DPoS.
- Proof of Burn (PoB): This alternative consensus algorithm involves “burning” tokens — that is, sending them to an unusable address, thereby permanently removing them from circulation. In return, miners earn the right to generate new blocks in proportion to the number of tokens they have burned. The Slimcoin network is a notable example of PoB in practice.
Other methods such as Proof of Capacity (PoC), also known as Proof of Space, or Proof of Authority (PoA), exist as well, and new techniques are constantly emerging that aim to minimize environmental harm. However, discussing all these alternatives in detail would be too lengthy for this article.
In addition, ongoing innovations in blockchain network design and protocol development are focused on increasing efficiency and reducing energy consumption. These new protocols promise enhanced scalability and security while keeping their ecological impact minimal.
Conclusion: Energy is the Key
After reviewing the various cryptocurrency mining methods, the conclusion that emerges regarding ecology is that both critics and proponents have valid points. Ultimately, regardless of the mining method, what matters most is the source of energy that powers the mining computers.
If carbon-based fuels are used, environmental pollution will be high. Conversely, if renewable, green energy is used, the environmental impact can be dramatically reduced, and nature will remain clean.
https://cryptonftworlds.blogspot.com/2023/12/bulls-charging-again.html
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Greetings and until my next article!
Neo77
