The Most Environmentally Friendly Way to Mine Cryptocurrency and Blockchain

Published on: 02 June 2022
by KnowESG

For a long time, cryptocurrency has been seen as an emerging asset class. Since its inception in 2008, blockchain, the talk of the computer world, has spawned hundreds of cryptocurrencies. Today, blockchain has become synonymous with cryptocurrency, and the two terms are frequently used interchangeably.

It's vital to understand that a blockchain is similar to a digital ledger for transactions spread across a network of computers. On the other hand, crypto is a decentralised digital currency that users may use to make purchases.

Blockchain is one of the most talked-about technologies, with the potential to transform industries such as finance, cybersecurity, intellectual property, and healthcare.

Because the data on the blockchain cannot be changed, it is considered one of the safest ways to store data.

One of the first applications of blockchain technology was Bitcoin, a valuable cryptocurrency. Both Bitcoin and blockchain have recently come under fire from environmentalists for contributing to rising carbon emissions.

It has been argued that cryptocurrencies consume a significant amount of energy, resulting in an increased carbon footprint. Cryptocurrencies and blockchain technology both have the potential to make the future greener.

According to the United Nations Environment Programme, blockchain technology can alleviate several environmental issues that the world is currently facing. Once politicians, scientists, and blockchain solution developers understand the technology, it can be used in a variety of environmental efforts.

The capacity of blockchain to retain records, transparency, value transfer, and tokenised ecosystems makes it a viable option for dealing with environmental challenges such as air pollution, ocean sustainability, and biodiversity conservation. It provides more environmentally friendly options. Ethereum, for example, permits the creation of decentralised programmes that have a positive environmental impact.

Cryptocurrencies can also go green by purchasing carbon offsets. What is a carbon offset, and how does it work? It's a carbon credit that a business can buy to lessen its carbon footprint. A carbon credit is a digital certificate issued by a company.

In a given year, your environmental project has prevented the emission (pollution) of 1 tonne of CO2 or comparable greenhouse gas. If the quantity of carbon credits a corporation has equalled its carbon footprint, it is considered carbon neutral.

Cryptocurrency offsets have the potential to become a critical instrument for climate mitigation. Green cryptocurrencies are currently available on the global market in a variety of forms. For example, to offset the carbon footprint of each unit of Bitcoin Zero, which is based on the bitcoin network, 10 tonnes of carbon credits are generated by utilising REDD+ operations.

Blockchain and cryptocurrency have a lot of potential to change the world by solving major global issues like the environment, energy, and infrastructure.

All that is required is a better grasp of technology and how to use it to benefit humanity. We can cut or offset current emissions and eliminate prior emissions from the environment using carbon credits via crypto and blockchain to reverse climate change and escape its grave repercussions.

Source: Financial Express

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