The European Union (EU) is working on a new program that will label the type of energy utilized for bitcoin mining projects. The program is set to determine the level of efficiency behind the module utilized by a specific project. In other words, we’ll know if it is proof of work (PoW), proof of stake (PoS), or something else entirely.
Crypto Mining Will Be Labeled in the EU
The goal is to ensure that electricity is not wasted and put to the best use possible. This has been a constant worry in the worlds of crypto and digital currency mining. There are still several reports being put out on a regular basis that claim crypto mining is taking the world down a deadly path from which it cannot return. These reports often claim that bitcoin and crypto mining uses more energy than most developing countries.
It’s one thing to simply toss these reports to the side and label them the rantings and ravings of eco-friendly obsessives who think the planet will be in danger so long as humans don’t sit completely still for the rest of their lives. However, it doesn’t help when some of the world’s leading digital currency experts appear to be on their side.
One example comes in the form of Elon Musk, the billionaire entrepreneur behind companies like Tesla and SpaceX. In early 2021, the mogul claimed that bitcoin and crypto holders could spend their digital assets on cars being sold by his former company. The news was well received and many thought bitcoin was about to turn completely mainstream, but that hasn’t been the case, largely because Musk was quick to rescind the decision.
Why, you ask? He was worried about the dangers of mining, and he said that he would not allow bitcoin to be used for Tesla purchases unless miners were more transparent about their sources. He also implored many miners in the space to be more focused on using green energy.
The EU has issued a report detailing the program. The document states:
Just as their use has grown significantly, the energy consumption of cryptocurrencies has more. In harnessing the use of cryptocurrencies and other blockchain technologies in energy markets and trading, care must be taken to use only the most energy efficient versions of the technology.
Proof of Stake and the Merge
Proof of stake is widely considered far more energy efficient than proof of work, with the latter still being utilized for bitcoin mining. Proof of stake is believed to lower energy use significantly. Recently, Ethereum – the world’s second largest digital currency by market cap and the number one competitor to bitcoin – switched from proof of work to proof of stake through an event called the Merge.
It is believed that this is going to cut Ethereum-based emissions by more than 99 percent in the future.
Source: https://www.livebitcoinnews.com/new-eu-program-seeks-to-make-crypto-mining-more-energy-efficient/