Why Is Blockchain Quite A Crucial Component In Our Earth's Natural Investment Strategy

Renewable energy is becoming more economical all the time — solar power costs, for example, have dropped by over 80% in the last decade — making the option for miners to switch to renewables easier than ever.

Despite its power and promise, crypto’s energy impact has polarized both opponents and supporters, resulting in a sector that is both admired and feared by industry leaders, regulators, and environmentalists.

While recognized as a valid asset class, the quick adoption is due to the fact that the technology is still in its infancy: a decade is a long time in the world of network infrastructures, after all. Nonetheless, at this time, the facility has made significant progress in resolving issues about energy consumption.

The days of organizations operating with growth at any cost are long gone. The cryptocurrency business, which has grown at an unprecedented rate, is now beset by escalating concerns about climate change, energy use, and increased scrutiny from opponents. The crypto sector, perhaps one of the most sought-after industries in the digital economy, is on track to become a US$4.94 billion market by the end of the decade, escalating calls for greater transparency among industry players as the area grows.

Extra Robust Than Ever Before

Despite its power and promise, crypto’s energy impact has polarized both opponents and supporters, resulting in a sector that is both admired and feared by industry leaders, regulators, and environmentalists. Legacy blockchains, such as Bitcoin, have chosen to employ proof of work (PoW) as their consensus protocol, causing concern. Though it may contribute to increased security and decentralization, PoW necessitates a large amount of computational power and, as a result, considerable energy consumption, estimated at 137.36 TWh per year – over three times that of Singapore.

With this in mind, the industry has been chastised for its harmful environmental impact. However, equating Bitcoin’s energy-intensive use with the entire digital asset business and portraying it as unsustainable is a blunder, especially since crypto and blockchain are not synonymous. The promises of blockchain and its ability to be an impetus behind creating a greener future are frequently overlooked by critics, who fail to distinguish PoW protocols from the more sustainable proof of stake (PoS).

Should critics reassess the blame game and re-examine the role of blockchain in achieving global sustainability targets in light of the increasing threat of climate change that is even worse than previously predicted. Crypto and the larger blockchain business have gone from relative obscurity to widespread appeal in just over a decade, thanks to a spate of noteworthy cross-sector alliances and the meteoric rise of non-fungible tokens.

The Notoriously Energy Intensive Bitcoin Mining Process

While recognized as a valid asset class, the quick adoption is due to the fact that the technology is still in its infancy: a decade is a long time in the world of network infrastructures, after all. Nonetheless, at this time, the facility has made significant progress in resolving issues about energy consumption. Despite being demonized, the notoriously energy-intensive Bitcoin mining process saw at least 74 percent of its energy usage come from renewables in 2019, as miners will actively seek out the most cost-effective way to power their operations.

Renewable energy is becoming more economical all the time — solar power costs, for example, have dropped by over 80% in the last decade — making the option for miners to switch to renewables easier than ever. Simultaneously, this encourages countries to monetize their renewable energy by selling it to crypto mining companies rather than exporting it abroad, which is not only expensive and logistically difficult but also has its own carbon imprint.

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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing