Cryptocurrency And Energy Consumption Issues: How Elrond’s Network Can Help

Recently, there has been a lot of attention given to Bitcoin's alarming impact on the environment. While efforts are being made to reduce the carbon footprint of cryptocurrencies, it is important to understand why cryptocurrencies use so much energy. 
Elrond Network, a new wave of blockchain technology, has sparked a new trend in the industry.

Read the full article for more information.

Why do cryptocurrencies consume so much energy? Did you know that the "mining" process that creates Bitcoin uses more energy than Serbia, according to Digiconomist? 
Bitcoin mining is done by solving cryptographic problems, also known as proof of work (PoW).

The first miner to find the answer receives a Bitcoin reward.

The race to find solutions is resource-intensive and requires a lot of energy, but it also consumes a lot of energy.

Bitcoin mining currently consumes 58.93 TWh per year. Bitcoin's CO2 emissions are even more serious. The Bitcoin network emits 22 megatons of CO2 annually due to energy consumption.

The carbon footprint of a large city like Kansas City is comparable.

What are the steps to make cryptocurrencies environmentally friendly?
Bitcoin is the most famous cryptocurrency that uses PoW, but it is not the only one. Some ciphers use different types of PoW.

Ethereum, one of the three most popular cryptocurrencies, uses the PoW algorithm. Bitcoin alone consumes a lot of power, but if other PoW cryptos gain popularity, the situation could worsen even faster.

Possible solutions range from the theoretical to the practical, but the Bitcoin community is aware of the problem.

However, there are some solutions you can implement to resolve this issue.

Use an alternative consensus algorithm. 

Considering that there are many different consensus algorithms, let's take a look at some of the most efficient ones. Proof of authority is an alternative to proof of work. 

To validate a new block in the network, each validating node must reveal its true identity.

Additionally, it is a reputation-based consensus method and does not rely on centralized mining. This is the consensus method that consumes the least amount of energy.

Developing a more energy-efficient blockchain

There are various approaches to making blockchain energy efficient. Energy efficiency simply means being able to send and complete more transactions while using the same amount or less of energy.

Discover greener alternatives to mining. 

Sustainable mining solutions come in many forms. For example, in areas with abundant sunlight, such as Texas, you can use solar energy to mine bitcoin. 

Solar energy is often too large to be managed by the electrical grid and must be disposed of.

Elrond Network: the first carbon-negative European blockchain

Elrond is the first carbon-negative European blockchain, ushering in a revolutionary era of sustainable innovation through European climate policy and a new era of scalable and energy-efficient blockchain technology.

Elrond achieved carbon neutrality by offsetting more carbon emissions than could be accounted for. Elrond's current processing power is 15,000 transactions per second, scalable to 100,000 TPS, delivering 1,000 times faster throughput and execution speed, and up to 6 million times less energy required to complete transactions. .

Offset's sustainability experts analyzed the carbon footprint of the Elrond blockchain and measured the energy consumption of his 5,000+ servers in 30 countries on 6 continents. We also measured the networks that connect them and the additional impact of product development and operations.

Elrond reported that his carbon dioxide emissions are 6 million kg CO2 carbon units, which is equivalent to 7.4 million kg CO2 and has an environmental impact of 25%.

The first of a series of investments in certified green initiatives has made the network carbon-negative. The environmental damage suffered by existing financial systems and most blockchain implementations could ultimately become detrimental over time.

Meanwhile, Elrond's carbon-negative efforts open up entirely new horizons.

It has the potential to build a strong and sustainable foundation for development and protect the planet as it moves forward.

Join the green blockchain revolution:

Maiar, the official wallet of Elrond’s network.

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