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The energy debate surrounding Proof-of-Work (PoW) blockchains like Bitcoin and Ethereum is nothing new. While the world’s wealthiest man might have rekindled the flames with his sudden about-turn on Bitcoin, Elon Musk is hardly the first person to be concerned over the high amount of energy that Bitcoin mining and other similar POW chains require. In fact, Tendermint co-founders and the authors of the Cosmos Network whitepaper, Jae Kwon and Ethan Buchman recognized this problem in 2014 when their research into Proof-of-Stake (PoS) and blockchain consensus mechanisms led them to develop — the first and most widely used implementation of a Byzantine Fault Tolerance (BFT) consensus engine and PoS crypto-economics to date. Tendermint Core At the very heart of their mission was the need to address the throughput, scalability, and, most importantly, environmental issues associated with Proof of Work blockchains. As Jae on May 20: tweeted out “We solved this first in 2014, so we were ahead of the curve by 7 years. @cosmos was among the first chains built on Tendermint BFT, and today Tendermint powers many of the world’s top blockchains.” Ethan corroborated his point, Musk’s now-infamous tweet: in a reply to “Cosmos pioneered energy efficient Proof-of-Stake. We’re the Tesla of blockchains.” But let’s back this up a little for the uninitiated. In this article, we’ll take a look at the environmental issues surrounding Proof-of-Work blockchains, the dramatically reduced carbon footprint of Proof-of-Stake networks, and how Cosmos fits into it all. Proof of Work Blockchains need to come to a consensus over how to validate new blocks that are added to the chain. This means that, in order to prevent fraudulent transactions, double spends, or other errors, there must be a mechanism in place that allows network nodes to agree on the accuracy of each new block before it is added to the chain. Proof-of-Work is the original consensus method adopted by the Bitcoin blockchain in order to achieve this. In a Proof-of-Work system, miners compete to solve complex mathematical equations to add new blocks to the chain. The first miner to solve the equation receives a block reward which consists of freshly minted Bitcoins (BTC) and a share of the transaction fees generated by the network. Once the answer is found by a miner, it can be easily verified by the rest of the network, and the new block is then added to the existing chain of previous blocks. In order to ensure the sustainability of such a system, the equations that miners have to solve are extraordinarily difficult and must be done by using a very high amount of computational power — and energy. The Bitcoin network also periodically adjusts the difficulty of the equations every 2,016 blocks (around every 14 days) based on the average block production intervals throughout the period. If the average interval is less than 10 minutes, that means that more hash rate than usual has been plugged in and the network increases the difficulty rate. If the average block interval is longer than 10 minutes, then the difficulty rate is reduced. In just over 12 years, the Proof-of-Work system has kept the Bitcoin network autonomous, decentralized, and secure. So, what’s the problem? The Problem with Proof-of-Work The (main) problem with Proof-of-Work is the high amount of computational power required to solve the mathematical equations and secure the network. For some perspective, running the Bitcoin network for one year uses approximately the same amount of energy as or . That’s an awful lot. And it’s caused Bitcoin to fall afoul of many environmentalists, with Elon Musk being just the latest in a long line. the Netherlands Argentina However, their about “boiling the oceans” may not be entirely accurate. Bitcoin mining gets a substantial amount of its energy from renewable sources. In fact, many of its supporters were quick to point out that some is mined using renewable energy. Others still, including the likes of Twitter’s Jack Dorsey and (rather curiously) Elon Musk himself, have claimed that Bitcoin renewable energy. A recent article by even suggests that Bitcoin adoption may speed up the green transition as it can be mined from anywhere — and using any source. statements 75% of BTC incentivizes Nasdaq Moreover, when you consider the constant attack on Bitcoin for its energy consumption, you have to ask whether the argument is really fair. After all, if you compare the energy spent on Bitcoin mining to gold mining or the existing banking system, it’s barely a drop in the bucket. And while we’re on the subject of comparing apples and oranges, North Americans consume more energy decorations every year than Bitcoin consumes in mining. lighting up their Christmas All these arguments are certainly valid yet they do not detract from the fact that this high energy consumption a problem — especially if you share the Cosmos vision of a multichain future. Bitcoin may be able to inspire a shift toward renewable energy, but what about a million blockchains with a yearly energy output similar to that of a medium-sized country? is Proof of Stake and Cosmos Proof-of-Stake, the consensus method that Cosmos is built on, is a different blockchain consensus model that is infinitely more energy-efficient than Proof-of-Work. Proof-of-Stake uses validators rather than miners to validate transactions and verify the accuracy of new blocks to be added to the existing chain. Rather than having to solve mathematical puzzles by lending the most computational power to the network, in a Proof-of-Stake model, validators (rather than miners) validate based on how much of the cryptocurrency they own (their ‘stake’). The more of a cryptocurrency the validator stakes, the more mining capacity they have. This means that, in Proof-of-Stake, validators validate the percentage of transactions equal to the stake of their holdings. So, for example, if a validator has 2% of crypto assets staked or delegated to them on a network, they can only validate 2% of the blocks, keeping the system distributed and, at the same time, removing the need for vast amounts of energy to solve equations. Unlike Proof of Work-based consensus blockchains like Bitcoin or Ethereum, a Proof-of-Stake blockchain like Cosmos Hub uses a different method for thwarting potential attackers that relies on economic incentives rather than energy. The validator receives a block reward, just like miners, but, if any potentially fraudulent behavior is detected, like a double signing, they are “slashed” and removed from the network. How Cosmos Proof-of-Stake Solves the Energy Issue Cosmos solves the problem of high energy consumption by using a Proof-of-Stake consensus mechanism that relies on our Tendermint Core engine that achieves high performance with a low carbon footprint. We also enable blockchains to scale and connect through our groundbreaking . IBC protocol The current estimated annual energy consumption (measured in TWh) of running the Bitcoin network for a year is , while Ethereum consumes around per year. By comparison, the estimated yearly consumption of a Cosmos-based blockchain is less than the energy consumed by Bitcoin and Ethereum in a single day (0.00046647 TWh). 121.86 TWh 52.27 TWh Now, consider Cosmos as an expanding ecosystem of blockchains. Even 100,000 Cosmos blockchains combined would still use less energy than Ethereum per year (46.647 TWh). That’s not a subtle difference. We’re talking about 5–6 orders of magnitude of difference across multiple energy-efficient blockchains. These approximations are based on the energy consumption of SSDs and single-socket servers. However, some Cosmos validators run cloud-only setups, which reduces the numbers even further. When faced with clear comparisons like this, it’s hard to justify the energy-guzzling Proof-of-Work consensus method, particularly in a multichain future. Ethereum developers realized this early on and have been on a lengthy path to transition to Proof-of-Stake for some years now. Evidence suggests that the switch will pay dividends as far as the environment is concerned. According to from the Ethereum Foundation, ETH 2.0 will consume more than 99.95% less energy than its current PoW consensus. recent research In addition to the low-energy and greenhouse gas requirements of running a Cosmos Proof-of-Stake chain, participants in the Cosmos network can offset their much smaller carbon impacts to become climate-positive blockchains using Regen Network. CEO and co-founder of Regen Network Development, Gregory Landua, explains, “The Cosmos ecosystem offers the opportunity for automatically offsetting validator and even protocol-level emissions with Regen Network’s carbon offsetting protocol. This power is unlocked by the Inter Blockchain Communication protocol and the interoperable nature of the Cosmos ecosystem.” The future development of blockchains is clear. If we want a greener environment while fostering innovative technology, we must adopt sustainable solutions like Cosmos Proof of Stake, blockchain interoperability, and carbon offsetting. Cosmos makes it easy for blockchain developers to build a chain in minutes and connect to a vast network of interconnected chains that includes some of the world’s largest blockchains like Binance, Crypto.com, Cosmos Hub, and Terra. Our vision is for a sustainable future multichain that doesn’t compromise the environment to achieve its goals. Will you join us? Cosmos Proof of Stake for a Sustainable Environment, a report by Christina Comben, Tendermint Inc. Previously published . here

How Cosmos Proof-Of-Stake Helps Create a More Sustainable Blockchain Environment

by April Bewell, content manager, Coinvest . Companies are driving adoption of blockchain technology, with many people calling it the next internet. When the dot-com bubble burst, many people thought that was it, an expensive technology, gone bust. However, it was a turning point in the history of the internet. Bubbles and consequent shakeouts are common for all technological revolutions. And out of the dot-com bubble burst emerged Web 2.0, to use the internet quickly and easily without knowing a bunch of IT jargon and commands. Apart from ease of use, one of the foundations of Web 2.0 is that it is social. It is participatory and interoperable. With Web 2.0 people can finally share their ideas, expertise, and knowledge, nay even just daily life such as the food they ate, the vacation they took, or their beef with their boss. And so long as it is public, anybody can access it on any machine without the need for a special software. No longer is it a domain for the geeks and the nerds, Web 2.0 is the tide that overturned the internet. What is Crypto 2.0? The crypto industry is following the same path as the internet, with bear markets playing an important role in bringing Crypto 2.0 to the forefront. Bitcoin was only the beginning. Far from having “crashed”, blockchain technology and cryptocurrencies are more important than ever, new applications and use cases are popping up with surprising regularity in a number of different industries, from farming, fintech and music to name a few. Unfortunately, there is still a huge divide between experts trading and common people investing in the crypto markets. Existing platforms on the market today are convoluted, filled with tech jargon and lengthy sign-up practices. This means that investing in cryptocurrencies is a difficult and intensive process, especially for the average consumer. While blockchain technology is revolutionary, many people don’t understand it, with the average consumer thinking only a tech genius is able to use and understand the technology. Moreover, everything is divisive, there’s no easy way to cross protocols, and still far from social. The Age of Crypto 2.0 is Driving Adoption Newcomers to the scene, with experience in the area of usability and user-friendly apps and web solutions, are zeroing in on these very problems, and striving to find solutions in order to eventually achieve mass adoption. A New Era of Personalized Portfolios One such company is . With Damon Nam at the helm, a 16 year IT services professional at Microsoft, he certainly knows how to build a product for the masses. Aiming to simplify investing for the general public Coinvest is now aiming to launch two exchanges, Coinvest and Coinvest Plus. While each has different target markets, both are designed with the user experience in mind. Coinvest With users can trade directly from their Coinvest cryptocurrency wallet and invest in hundreds of cryptonized assets and indexes using only the COIN token. The platform has clearly been designed with simplicity in mind, catering to the average and retail investor. This is not only easy to use but would soon be social as well, as the company would be adding the ability to copy-trade other users’ indices. Coinvest, For retail and institutional investors, they have designed Coinvest Plus -a cryptocurrency exchange that allows users to trade cryptonized assets together. The platform offers a host of tools such as statistical charts and an advanced order book matching system. Rewarding The Creators Change is not only happening on exchanges like . Crypto 2.0 is attempting to fix the cesspool of advertisers stealing users attention and the networks getting rich out of selling out users information on social media websites. At its very basic, networks like Facebook and Youtube are all about having advertisers pay for the audience’s attention, and the network takes a middleman’s fee. Which leaves the creators high and dry, taking meager earnings from what they have created. Not to mention the many unsavory results of uninhibited advertising that serves hate propaganda and politicians through these platforms. Coinvest One platform that is generating a lot of interest in the genre of rewarding is the . This browser allows users to reward creators they like and also rewards users that use the browser with the ads enabled. Not only does this allow users to earn money for consuming content but it also gives back control to the users and creators of said content, instead of centralized third-party platforms. And because it is decentralized and private, users own their data, control their own content and get paid directly by users who want to view it. Brave Browser Brave is still in evolving in terms of UX, design, and a user-friendly experience but with their recent successes, it is evident that when given the choice, a lot of people will prefer the social media and browser sites that they directly control and benefit from. Connecting the Dots with Payments Systems Admittedly, one of the failings of Crypto 1.0 is the inability of users to use crypto for the simple act of buying anything, due to slow transaction times coupled with high fees. Ironically, 10 years, after buying the first pizza with 10,000 BTC, we are nowhere near the dream of using crypto to pay bills and send money. Which is understandable, because the focus has mostly been about building platforms. We are now beginning to see real-world adoption such as ATM’s and e-commerce solutions that allow people to buy things as basic as tomatoes. With Crypto 2.0, adoption and interoperability is now becoming more synonymous. In third-world countries, where connectivity and bank access is still a major problem, the blockchain and cryptocurrencies are making headway. For example, in Mombasa, Kenya, the on the POA Network is digitizing and tokenizing the allowing the community to use their Bangla-Pesa currency for transactions on the blockchain. Because of the platform’s interoperability, they can also convert their Bangla-Pesa for Ng’ombeni-Pesa (another neighboring community currency that couldn’t be easily converted to before.) Bancor Wallet Sarafu Credit System In the Philippines, one of the frontrunners of crypto adoption is , a crypto wallet that also serves as a remittance and bills payment system. It allows easy sending of both crypto and fiat to other people without any huge inconvenience and people can even pay their electricity bills, tax, insurance in crypto too. Their 5 Million users can easily cash in and cash out at the neighborhood 7–11 or the many remittance centers in the country. Coins.ph Where Will Crypto 2.0 Take Us? In the current bear market, the people’s mind is diverted to prices, losses, and the instability of the market. Gloom and doom permeate major news outlets and the social media. But the truth is, the prices only make half the story of the blockchain and cryptocurrencies. Coinvest, Brave, Bancor, and even Coins.PH, affirms that technology can only move forward. In order to be a solution for the many people who wish to take part in this new revolution, we have to strip off the descendent technology down to its core usage and present it in a new and meaningful way that will make sense to its new users. Crypto 2.0 will take blockchain further to the mainstream until it becomes so pervasive that people will forget that they’re even using crypto and the blockchain in their daily life.

The Age of Crypto 2.0 Has Arrived.

Ask anyone in the crypto space about the major barriers to adoption and nine times out of 10, education comes up. Understanding this industry, its importance, and the potential it holds for all our lives is vital to growing the space. We need better education not just at a developer level through programming courses or Masters' degrees at universities, but for the general public, and at a grassroots level, as well. Education to Grow Our Numbers Many companies throughout the blockchain space have invested significant time and resources to onboarding people more easily, making their products more user-friendly, and trying to demystify aspects of the blockchain. Yet, it still isn't enough. The number of blockchain wallets is steadily on the rise to Statistica. Yet, it still resides at less than 50 million as per Q1, 2020. With a global population approaching 8 billion, it's pretty clear, there's still a very, very long way to go. according We hear a lot of news in the crypto media about how Bitcoin is saving Venezuela and that other countries with high or hyperinflation are continuously using cryptocurrencies as a store of value to shield their wealth. Having this option is a powerful thing. Yet, not being aware of this option is the reality for the resounding majority. Many people in developing countries have never even heard the word cryptocurrency let alone how it might be useful to them. In the developed world, there may be greater awareness especially when it comes to Bitcoin. According to , for example, over 90% of Britons have heard of Bitcoin, yet, understanding is significantly lower with ownership at less than 4% of the population. some surveys Crypto is still dealing with very small numbers largely because it is perceived as being too complicated or because it's still struggling to shake off its criminal association. Bitcoin and the Silk Road, child porn, ransomware hackers, crypto scams, money laundering… mainstream media never misses an opportunity to tarnish cryptos as being bad; despite the world's largest banks being among the of money laundering and price-fixing. greatest perpetrators Now Is the Time to Get the Message Across So, while educating about the space is growing modestly, global macro factors have now presented Crypto with an opportunity like never before. Worldwide unemployment caused by the lockdowns, a precarious economy, and a pandemic far from under control are all fueling the fire. Add to that the bewilderment of people trying to grasp at how governments have no money to fund a better health service one day--yet can print unprecedented amounts of it the next. They are also starting to wonder how the stock market can be positively ballooning in the middle of a pandemic when many don't have enough money to buy food and basic supplies. Where is all the stimulus money going? What will be left when the virus is over and the economy is in tatters? Inflation? Rising prices of basic goods? A devaluation of their currencies? Or an even greater divide between the 1% and everybody else? At a time when QE is on steroids and many people are still forced at home due to lockdowns or unemployment, now, more than ever, is the time for crypto to stand up and do a better job. This is probably the first time in history we've had such a captive audience willing to listen about the benefits of cryptocurrency, cutting through the hype. Cryptocurrency Companies Taking the Lead We're already starting to see the winds of change blowing in as major macro investors like Paul Tudor Jones publicly back Bitcoin in their portfolios. But then we have Goldman Sachs telling investors to stay away from Bitcoin, and the messaging is still mixed. In this confusing panorama, some of the best examples I have seen recently of furthering education in this space have come from the following sources: David Johnston, Yeoman's Capital At a panel for the first Blockdown online conference in April this year, I had the pleasure of speaking with participants about DeFi for the 21st century. One of the panelists that impressed me the most was David Johnston, Ceo of Yeoman's Capital and Chairman of the Board at Factom. Despite having been immersed in the space since the very early days and leaving the fiat system entirely in 2012, he's a no-nonsense speaker who understands the need to onboard the next wave to crypto. When discussing DeFi and how to reach more and more people, he explained that he was hosting a series of 100 days of Crypto to educate people "sitting around at home during lockdown". His aim is not just to reach out to those in developing countries or in financial strife but for those investors who simply don't want to leave their money in a bank with a negative yield. “People are getting a great rate of return on their assets at 7-10% percent in DeFi… In the current environment, that’s extremely attractive. So I expect to see more and more billions coming into the DeFi platforms.” You can check out his . series here OKEx Beacon Program Another interesting initiative that I have come across recently is being led by OKEx. Rather than a series of videos or articles about crypto, this global exchange is taking a different approach. The company is selecting people to participate in a hands-on series of Masterclasses along with a month-long mentorship program. This kick-off series, according to the exchange, is aimed especially at the European region, being among the hardest-hit areas, and will give participants access to industry professionals and one-on-one mentoring with OKEx chief executives. This program may not be about onboarding the masses, but it could be a way to for promising participants to kick start their careers working for a large exchange in an industry that's shown good resilience to the pandemic so far. You can find out more about the . Beacon Program here SIMBA Chain Training for New Developers is taking a strong initiative for people affected by COVID-19 lockdowns as well. The blockchain company has created a new training website for new developers or developer-curious to learn to build their own dApp using the company's "freemium low-code blockchain platform." SIMBA Chain Joel Neidig, CEO and co-founder of SIMBA Chain, commented: "America's economy has been broadsided by the COVID-19 pandemic, with a quarter of our workforce sitting on the sidelines wondering what their next move should be. It's not just service industry workers who are without work; freelance developers and consultants have also been displaced. Once we get through this temporary economic lockdown, the demand for skills in technology like blockchain will be greater than before. So we're making training available to all." Your skill level doesn't matter as long as you have an interest in learning and courses start with building your first dApp up to coding an Ethereum smart contract. Online Conferences As mass gatherings (and certainly international ones) have been canceled around the world, the cryptocurrency conference industry has had no choice to move online. To be fair, online events may not be the same nor give you the chance to network and kickstart new opportunities in your life. But, as with all areas ,the conference industry has had to adapt. And in its pivot, many great benefits have come. By making them free for people to attend, they are accessible to anyone, not just companies with deep coffers, investors or media, but to anyone interested in hearing about this space. From the which takes place online this week to the epic making a second appearance later this month, and even Consensus, the industry's largest (and most expensive event); the decision to open up the doors to all deserves some applause. AIBC Manila Blockchain Summit Blockdown As the frustration rises with traditional finance, the necessary aid fails to arrive, and people are staying at home, now, more than ever is blockchain's time to thrive. I hope that initiatives like these will begin to spread throughout the space and that the conversation will start to shift from "what is Bitcoin?" to "Have you bought Bitcoin yet?"

Education Has Never Been More Important in the Blockchain Space

The industry’s longest ever bear market may not encourage many people to invest in crypto right now. But while the naysayers like Warren Buffett are busy ringing the death knell for Bitcoin, there are still rays of hope here and there. ICOs may be all but dead (with so far), but there are still plenty of viable projects a year or so on that you can buy into at a knock-down price right now. zero funds raised in March So how do you know which projects to invest in when there’s blood on the streets? How can you tell where to put your money when plenty of crypto companies are folding? According to non-custodial instant cryptocurrency exchange ’s former CEO Ilya Bere, it’s important to make the distinction between speculative and true utility projects. Changelly works with 130+ altcoins and partners with Jaxx, Coinmarketcap, and other well-known players in the industry. When it comes to “backing the right horse,” he knows a thing or two. Changelly “An investor has two options to make a choice,” he explains, “either learn the numbers of the current dry statistics or make their own assessment. But it would be even better to do both, thus to increase the possibility of making a profitable investment.” Crunching the Numbers Isn’t Enough What caused so many people to invest in projects that are currently circling the drain? Was it FOMO, relentless marketing, a flashy white paper, or superlative claims? Did they invest with their hearts instead of their heads or get excessively carried away by the numbers? Crunching the numbers isn’t enough. One year later and it’s becoming clear that plenty of these quasi-legal projects will fail to stay the distance. It’s vital to analyze the figures when looking to invest in the right altcoin, but investing wisely in today’s market climate requires even more focus than that. “To date, when the market declined, and tokens’ prices dropped, those investors who expected to get at least 6 times profit now cannot afford to count only on the side of statistics,” Bere points out. “Today we need to look at the bigger picture and rely on our financial intuition. Because even when the market is low, there are still undervalued projects that can potentially bring profit to its investors in the future. And that brings us to the second method of evaluating the performance.” We already know how fast the crypto space moves. Even by the time you finish reading this article the market could have recovered or dropped even further. If you only look at the numbers, especially in the short term, you’ll be glimpsing a mere snapshot of a project. For example, , one of the latest altcoins to partner with Changelly, went on a wild bull run in October 2018, trading at over $0.14 cents and making a in just 24 hours. The token then began to drop steadily once again closing the year around $0.03. Digitex Futures 50% gain The fall had nothing to do with a security breach/a dubious team carrying out underhand dealings, or regulatory concerns — it simply accompanied market sentiment overall. Today, a few weeks from launch, the DGTX token is gathering momentum once more, trading at around 8 cents. This is a reminder that you always have to look deeper into the context or you may be too quick to dismiss a viable project — or invest in a weak one. You Have to Look at the Achievements Says Bere, “The worthy project proves to be so within its best performing and the team achievements. Take the time to do a little research and to find out what has been done in a year. Talk about the project’s usability, its contribution to mass adoption, etc.” Going back to the Digitex example, the company held its ICO in January 2018. It sold out in 17 minutes. Demand for its commission-free futures exchange has always been high, with a current waitlist for their product of over one million traders. But the company hasn’t delivered yet. So instead, you have to look into what it has achieved. Partnering with Ethereum-approved Team Matter to work Plasma Protocol into its technology stack and offer non-custodial accounts is pretty big. Teaming up with Spotware trading platform experts to add traditional futures markets and trading tools straight from launch is also another bold move. It’s these type of achievements and milestones that you need to look out for besides just whether the token price is up or down. “It is first of importance to find the answers to such questions as–what exactly is the project? What team is standing behind it? It is worth drawing attention not so much to advisors and ambassadors, but to the team performance, to find out whether they follow the roadmap,” Bere emphasizes. “In other words, you should go through all the checkpoints, which are usually issued during the standard process of venture investment. If you want to invest, it makes no sense to look at past rates. Instead, look at the team and its annual results.” The Takeaway There are no guarantees when investing in crypto. But then again, there are no guarantees when making any type of investment. In fact, if you do come across a project that offers 100 percent returns, head for the hills in a hurry. Individuals may not have the same investor experience or complex tools to carry out due diligence on a project, but that doesn’t necessarily mean that they are at a sweeping disadvantage. Pay attention to the numbers, but don’t look only at the numbers and certainly not for short periods of time. Look to the team — not only their credentials on paper — but what they’ve achieved over the last year. Have they hit their milestones? And if they haven’t, have they explained why not? Are they transparent and do they have a large community around them? There’s no certainty that the altcoin you back will end up being a winner, but at this juncture, you can at least see that it hasn’t fallen at the first fence. Follow your instincts by all means but also be sure to follow the above guidelines. That’s what VC firms do, that’s what top exchanges like Changelly do, and that’s what you should do as well.

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