For advocates of the widescale adoption of cryptocurrency, there is one major challenge that stands in the way of their dream coming true. Namely, the fact that mining cryptocurrencies require exorbitant — and seemingly wasteful — amounts of energy. However, two key solutions have presented themselves as potential ways for cryptocurrencies to reduce their environmental impact and energy consumption. Making efforts to reduce the amount of energy needed to mine cryptocurrency along with the utilization of clean energy sources have the power to eradicate crypto’s energy consumption problem. Understanding the ways that different cryptocurrencies can reduce their impact can provide one with a clearer understanding of the future of crypto and its ability to become a widely adopted form of currency. Here is how clean and green energy can be the solution to crypto’s energy consumption problem. Investing in Proof-of-Stake and Moving Away From Proof-of-Work When it comes to mining cryptocurrency, it can be difficult for the average person to grasp some of the more complex intricacies of the practice. In terms of energy consumption, it’s important to understand the concepts of proof-of-work and proof-of-stake. Most cryptocurrencies utilize a proof-of-work model, requiring users on the network to use more power in order to mine more crypto. Conversely, proof-of-stake is a model that requires far less energy to be used in order to mine crypto and has proved itself to be a viable alternative to the proof-of-work model. Ethereum, one of the most popular cryptocurrencies, recently completed a merge that saw the process of mining Ethereum shift from proof-of-work to proof-of-stake. It is reported that Ethereum has cut its carbon emissions by an astronomical amount, now using one one-hundredth of the energy its network previously consumed. This shift in the Ethereum network has shown that it is in fact possible to create crypto networks that can allow users to mine crypto without utilizing an exorbitant amount of energy. Though the Ethereum merge is a relatively new phenomenon, crypto advocates will surely agree that it is a positive shift in the crypto world that can help get naysayers to change their opinions on the negative impact of crypto mining. Given the remarkably positive outcome of the Ethereum merge, it would make sense for other cryptocurrencies to follow in Ethereum’s footsteps. This shift from proof-of-work models to proof-of-stake models could easily act as an effective and practical solution to the problem of crypto energy consumption. However, while proof-of-stake has proved itself to be an incredibly useful and effective model in terms of energy consumption, some believe it to be lacking in some other areas which crypto advocates value. The main area where proof-of-stake models are gaining criticism is in the realm of decentralization. Decentralization is one of the main philosophies behind the adoption of cryptocurrency by crypto enthusiasts. Proof-of-stake models can make it more difficult for networks to limit the amount of cryptocurrency that they mine, making it possible for power to fall into a singular person’s hands. Despite it being less capable than its proof-of-work model’s counterpart to ensure the decentralization of cryptocurrencies, proof-of-stake models’ ability to drastically decrease the energy consumption of networks makes it a hard solution to ignore. As time goes on, it is likely that new innovations will be implemented to fix proof-of-stake models’ shortcomings in terms of keeping crypto decentralized. While proof-of-stake is a great option for crypto to reduce its energy consumption, other innovations in the space may also be able to help address the problem. The Ethereum merge has set a powerful precedent in the world of crypto and many are hopeful that other crypto networks will follow suit and implement their own attempts to reduce energy consumption. Clean Energy as a Way to Combat Crypto’s Negative Impact on the Environment While the Ethereum network’s tactic of altering its model to require less energy to mine Ethereum has shown itself to be a great way to reduce crypto-related energy consumption, alternative forms of energy sources have presented themselves as another possible solution to the problem. Specifically, clean energy sources are beginning to be seen as a way that crypto mining efforts can be powered without harming the environment. While some may be familiar with the term, others may be wondering . what clean energy is Though some professionals differ slightly on their exact definitions of clean energy, the majority of people view clean energy as renewable energy sources that have little to no negative impact on the environment. Unfortunately, not many people are aware of the tremendous power of clean energy sources which highlights the importance of effective . engineering communication Forms of clean energy include wind power, solar power, and hydropower, all of which are not in any danger of running out or harming the environment. A specific example of a way to generate energy from a clean energy source would be a wind turbine. These machines are powered by wind, converting the energy from the wind into other more practical forms of energy such as electricity. As it pertains to crypto, utilizing technology such as wind turbines could have a dramatic effect on the amount of damage that crypto mining does to the environment. In the crypto world, there are many people throughout the world who set up what are called mining farms. These mining farms allow people to earn crypto by solving complex computational problems. While the intricacies of the process may be complex, all that's important to understand is that these operations require large amounts of powerful technology which in turn require large amounts of energy. While the process of introducing more concepts like proof-of-stake is a way to solve one part of the crypto energy consumption problem, clean energy may be the perfect solution in terms of providing energy for crypto mining farms. If these farms were able to harness a form of energy such as solar power, they would be able to significantly reduce the negative impact that crypto mining is having on the environment. Although cryptocurrency is still in the initial phases of implementing ways of reducing its energy consumption and negative impact on the environment, the combination of crypto network models that require less energy to mine from and the utilization of clean energy sources seems like the perfect way to take crypto to the next level. By taking advantage of these two options, more people may feel open to adopting cryptocurrency, making it more likely to become a normalized form of currency throughout the world. Making Crypto Environmentally Friendly Is Key Cryptocurrencies have brought with them a slew of benefits such as decentralization of power and more access to opportunities for various individuals. However, the energy consumption associated with the world of crypto has been far from sustainable and also worryingly harmful to the environment. Thankfully, new innovative network models and clean energy sources have provided options for the crypto world to reduce its energy consumption and negative impact on the world. While not all major cryptocurrencies have implemented plans to reduce their energy consumption, those that have are setting an example for others to follow in their footsteps and make cryptocurrency more likely to become adopted on a wide scale.

Ethereum

Using IIoT to Streamline Business Processes

Should Telsa Humanoids Be Our Future Nurses?

Nominated for 2022 - HackerNoon Contributor of the Year - Covid19

Nominated for 2022 - HackerNoon Contributor of the Year - Communication

Nominated for 2022 - HackerNoon Contributor of the Year - Digital Transformation

Too Long; Didn't Read

CTA: Download the FREE AI Productivity Shift report

Crypto Energy Consumption: Clean & Green Could Be the Solution

About Author

Comments

TOPICS

THIS ARTICLE WAS FEATURED IN

Related Stories

Untitled Story

The Gig Economy Revolution: Inspiring a New Generation of Entrepreneurs

2100: A Global Warming Odyssey

3 Key Considerations when Recruiting for Clean Tech Startups

Alexandre Stricher, rally driver: “The refueling time of FCEVs is a revolution for electric…

As Pressure Mounts, Energy Companies Turn to 7 Key Technologies to Tackle Emissions

The Gig Economy Revolution: Inspiring a New Generation of Entrepreneurs

2100: A Global Warming Odyssey

3 Key Considerations when Recruiting for Clean Tech Startups

Alexandre Stricher, rally driver: “The refueling time of FCEVs is a revolution for electric…

As Pressure Mounts, Energy Companies Turn to 7 Key Technologies to Tackle Emissions

Light-Mode

Classic

Newspaper

Dark-Mode

Neon Noir

Minty

HN StartUps