A wall of crypto mining equipment.
Getty Images
What’s the latest?
Greenpeace and Environmental Working Group have launched a campaign to demand that the software behind bitcoin be changed in order to make the cryptocurrency network more energy-efficient.
Why it matters
Bitcoin, the most well-known cryptocurrency, is an energy hoarder that consumes as much energy as some countries such as Norway or Sweden.
An alliance of environmental groups was launched campaignMonday: Bitcoin will become less energy-intensive by making changes to its software.
Greenpeace USA, Environmental Working Group, and other organizations call for the bitcoin blockchain to change from its current proof of work system to a proof of stake model. Proof of stake requires less energy than proof of work.
The campaign’s slogan, “Change the Code, Not the Climate”, aims to bring attention to the amount of energy required to power the network. It has been estimated that this amount is greater than many countries.
Rolf Skar, Greenpeace USA Campaign director, said in an interview that it was better to have a thoughtfully managed change that reduces climate emission as soon as is possible than some kind of calamity.
The campaign is taking place amid a boom of bitcoin mining operations in the US.Resurrection of a businessatCoal plantsIt belch outEmissionsThey contribute to the climate problem. Bitcoin mining from the USA has been booming since China.BannedThe activity took place last year. China has been replaced as the home of the US.Most bitcoin mining operations.
Skar stated that “we’re seeing frontline community battles proliferating all over the US where fossil fuel power stations that were idle or on their way to retirement suddenly find new customers in form of bitcoin mining operations.”
The University of CambridgeBitcoin Electricity Consumption IndexAccording to estimates, Bitcoin uses more energy annually than Norway and Sweden. The New York TimesEstimatesOne-half of global electricity consumption is due to bitcoin
Bitcoin’s proof–of-work model uses energy-sucking computer equipment in order to solve problems that allow transactions to be validated on the blockchain. This process is called mining. When their machines solve the problem, miners are awarded coins.
In proof-of-stakeRandomly selected models and computers are used Create blocks for the Blockchain. Computers that aren’t selected are responsible for validating the blocks. Miners must offer a certain number of coins as collateral to be included in the proof-of–staking process.
TheEthereum Foundation, which supports the Ethereum blockchain, the native blockchain for ether, is the second-largest cryptocurrency in terms of market cap, after bitcoin. Change from proof of work to evidence of stakeFor a while. The switch has been made delayedHowever, it is still plannedFor the second quarter 2022.
Ted Cruz, a senator from Texas, has argued for coal-powered bitcoin mining. Cruz, a Texas Republican, said that he sees mining as a way to make money. Support his state’s power grid.
During a Tuesday press conference, campaign members were quick to emphasize that the effort isn’t anti-bitcoin but is focused on reducing network’s energy needs.