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Blockchain Technology Should Be Better For The Environment

By Tyler S. - Crypto Investor- 13-03-2021

It is no longer a secret that the United States has reaffirmed its pledge to reduce greenhouse emissions and to take an active role in the global effort to normalize environmentally sustainable policies. This dramatic shift in policymaking would encourage the implementation and establishment of more rigorous solutions to climate change. Unquestionably, the re-entry of the United States into a climate change dialogue is symbolic of the severity of the situation and the dramatic decisions that governments will obviously make to achieve the ecological objectives set in Paris, recognized as the Paris Agreement.

The growing effect of emerging technology on the pursuit of a sustainable world is at the core of this political and economic restructuring. You would want inventions to make a meaningful contribution to this revolution. It is pointless to spend trillions of dollars in creating new technology without considering the long-term tendency of adherence to the 2030 Sustainable Development Goals, especially on environmental sustainability issues. It is also essential to examine the feasibility of blockchain from the environmentalist's vital lenses.

Blockchain has been one of the most revered innovations in the last few years thanks to the increasing adoption of digital properties. The prospect of enabling a modern order of monetary services has pushed technology into the hallowed domain of technologies that are powerful enough to ignite the Fourth Industrial Revolution. At the moment, though, the most commonly adopted use of blockchain technology—Bitcoin (BTC)—tends to draw unwelcome headlines about its position in climate change.

Bitcoin uses a method called mining to mint new coins. This allows miners to solve complicated problems with sophisticated computing machines in order to build new blocks and earn new coins as incentives. It goes without saying that this system plays a crucial role in protecting the network against abuse and double spending. Since Bitcoin depends on a shared consensus approach, it is also logical why it has aimed to substitute intermediaries with a nodal-based authentication method, known as proof-of-work or PoW. Here, the effort to distribute processing resources to the network increases the odds of appearing as a stakeholder at the moment.

While this solution is praiseworthy, it is not environmentally sustainable. The sheer number of resources needed to support the Bitcoin network has been under extreme scrutiny. The carbon footprint of Bitcoin's industrial mining activities is equivalent to that of New Zealand. Another telling aspect of PoW's environmental frustration came to light in 2019, when analysts found that blockchain mining accounted for 0.2% of the world's energy use.

Exceptionally, the new, yet explosive, blockchain industry has produced a number of other consensus models. These alternatives are planned to remove the shortcomings of the proof-of-work process. As such, they're more in tune with the environmental movement. Any of the versions presented over the years include proof-of-stake, functional Byzantine fault resistance, proof-of-burn and proof-of-weight. Instead of requiring miners to solve issues, these models opt for less energy-intensive activities to protect blockchain networks and verify transactions.

For e.g., PoS increases the position of validators to participants who are economically dedicated to the ecosystem. Here, the algorithm selects validators from a list of individuals or institutions who have locked the requisite number of coins on the blockchain.

Conversely, proof-of-weight weighs the wealth or credibility of participants in the collection of validators, whereas proof-of-burn measures the willingness of network members to burn coins—to submit coins to an irreparable address. Notably, both of these models are moving away from the electricity-consuming method of PoW and handpick validators based on their dedication to guaranteeing that the network stays in a stable state.

The feasibility of blockchain technology and its environmental protection are intertwined, as illustrated in this document. For what it is worth, the advent of a multitude of compromise structures is an indicator that deliberate efforts to reduce the excesses of blockchain energy usage are now producing results.

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