Market Meditations | April 26, 2022
? Un-Earthing the Truth
In honour of Earth Day, today’s Big Idea explores initiatives that aim to make cryptocurrency more sustainable. Earth Day is celebrated on April 22 every year with an aim to preserve and conserve planet earth and its biodiversity.
1️) Proof of Stake Mechanisms
ETH 2.0 will move from the current PoW mechanism to a consensus mechanism known as proof-of-stake (PoS). According to a recent research report conducted by Carl Beekhuizen, it is estimated that Ethereum will use at least 99.95% less energy after the switch.
2️) Renewable Energy Sources
ExxonMobil is the top oil and gas producer in the U.S. According to people with knowledge of the matter, they have been running a pilot program to mine bitcoin in North Dakota since late January 2021. To put it simply, the energy from flames one may see rising from oil fields is being redirected to mine bitcoin. (click here to learn more). While this may not be the renewable energy environmental activists were searching for, it is a way to solve two problems at once by finding a use for the otherwise wasted energy.
3) Innovation Amongst Cryptocurrencies
Many of the biggest cryptocurrencies are exploring green initiatives:
- Algorand. As reported in last Thursday’s issue, Algorand, the PoS blockchain protocol will begin offsetting its network’s carbon emissions by using a portion of its transaction fees to purchase carbon credits at ClimateTrade. Carbon credits are permits that allow the owner to emit a certain amount of greenhouse gas and were originally devised as a mechanism to reduce emissions.
- Near. Near Protocol managed to offset its first year’s emissions through documented, verifiable, tree planting and reducing subsequent emissions.
✅ TIP: The need for climate solutions is only becoming more significant over time. Being climate-friendly is a positive when it comes to researching and selecting cryptocurrencies. Keep an eye out for it.
4) Blockchain Solutions For Companies
Samsung announced its intention to plant mangroves in Madagascar to help offset their carbon emissions. They are partnering with Veritree, a blockchain technology company that helps track and account for every tree that is planted (‘Proof of Tree’, if you like).
Cryptocurrency is an explosive and pragmatic industry. Climate change does not present a problem but rather, an opportunity to innovate and build solutions. Something the industry has done time and time again.