Crypto is the world’s fastest-growing form of currency, making it a popular investment for both individuals and organizations. However, it has recently raised environmental concerns because of the industry’s rather large carbon footprint. Fortunately for crypto-enthusiasts, crypto mining can become more eco-friendly using the following tactics.
Replace Proof of Work
The reason crypto uses so much energy is that it uses high-powered computers to make calculations as fast as possible. The calculations are part of crypto’s consensus mechanism, called Proof of Work. Fast calculation speeds come with enormous power consumption, which understandably raises concerns for environmental protection groups.
Fortunately for crypto-enthusiasts, Proof of Work is not the only consensus method. There are dozens of other methods out there, including Proof of Stake, the second-most popular version. By some accounts, Proof of Stake uses over 90 percent less energy than Proof of Work, making it a far eco-friendlier option.
Another step that crypto miners can take is to make sure they are using renewable energy as the basis for their mining instead of fossil fuels. Renewable energy sources like solar, wind, and geothermal are much better for the environment, and the good news is that they don’t really run out. Fossil fuels, on the other hand, are the number one cause of climate change, which is the most important reason to start moving away from them.
If you’re interested in crypto mining, you should petition your local and national governments to implement policies that encourage miners to switch to renewable energy sources. One way crypto mining can become more eco-friendly is for governments to offer deductions to miners who install solar-based systems instead of relying on fossil fuels. Another way is to allow miners to sell excess energy back to the grid so it doesn’t go to waste.
Just because people associate cryptocurrencies with large carbon footprints doesn’t mean things need to stay that way. There are several ways crypto can become more sustainable while still being profitable.