The cryptocurrency sector is under strict scrutiny, and for a very good reason – according to European Commission, the mining industry alone requires approximately 0.4% of energy consumption worldwide. The energy consumption of crypto has increased by 900% in only five years, which does not line up with the global intent of ensuring emerging technologies contribute to a clean energy future. The movement towards greener crypto seems inevitable, as investor awareness and rising governmental critique force the sector to adapt to the new normal.
Ethereum in transition
Transitioning to more sustainable practices has been a prevalent trend in the crypto sector this year. The most notable shift in the industry can be pinpointed to Ethereum, which shifted its entire protocol from mining requiring proof-of-work (PoW) to proof-of-stake (PoS). According to Cointelegraph, this conversion has reduced the blockchain network’s energy consumption by a whopping 99,9%. Considering the market volume of Ethereum, there is no doubt this transition is a needed reminder among other proof-of-stake currencies.
Altcoins with a sustainable approach
Besides the big established currencies re-evaluating their protocols, many fascinating smaller currencies go the extra mile for a more sustainable approach. For example, the proof-of-stake consensus-based Solana combines swift transaction speed and carbon neutrality reached already in 2021. Some blockchain networks take carbon emissions even more seriously: Algorand has made its goal to be carbon-negative, and by the looks of it, this goal might be fully reachable.
Avalanche is another front-runner in crypto, titled one of the most energy-efficient blockchains in 2022, according to Cointelegraph. Compared to Bitcoin, the public blockchain of Avalanche consumes approximately 0.0005% of the energy of Bitcoin. Needless to say, more and more cryptocurrencies are choosing the sustainable path, as it’s more than necessary.
This is only the beginning
As cryptocurrencies and blockchain technology take a lot of pride in providing new, better ways of financing, they are by no means immune to the struggle of slowing down climate change. For the sector to survive, it must adapt to these challenges, and luckily, 2022 goes down memory lane as a year of big changes in the world of crypto.
Despite these changes, the entire crypto industry must adapt to cutting energy consumption and transition towards greener energy sources. While mining is still required for many cryptocurrencies, with the help of GRN Energy, even bitcoin mining can become more sustainable. By matching your crypto mining operation with the right co-location service, miners can earn BTC and minimize their impact. Let GRN Energy help you with making your mining business more sustainable. Schedule an appointment with an expert to find out how we can help you.