crypto: the crypto industry is moving away from the PoW model to solve environmental problems
Separate parties verify records and transactions stored on a blockchain in the first generation of cryptocurrencies, known as the âproof of workâ or PoW model.
If prices and user acceptance of the crypto asset continue to increase, the amount of energy needed to mine cryptocurrency is also expected to increase.
Market players said it is high time the world moved to a better model and replaced the “profit at all costs” model with something better like “benefit for all” following the growing use cases. and its veracity.
Pratik Gauri, co-founder and CEO of 5ire, said it has been repeated many times and it is becoming abundantly clear that we will not get out of the current environmental crisis by simply ignoring it.
“Over the past 15 years we have worked to test and implement the idea of ââa ‘for-profit’ economy, and it is comforting to know that it has been recognized for its value and universal application” , he added.
In an attempt to move towards a cleaner future, the market for sustainable or “green” cryptocurrencies has exploded in recent years. These tokens have a low carbon footprint, completing the transaction with much less energy.
Vijay Pravin Maharajan, CEO and Founder of bitsCrunch, said that with changing times, global investment techniques are gradually shifting from gold to stock trading and cryptocurrencies.
“The new tokens use a technique known as ‘proof of stake’, which ensures trust in a more traditional currency, i.e. silver. This consensus approach reduces the amount of computing resources needed to verify transactions,â he added.
The proof-of-stake (PoS) technique of authenticating cryptocurrency transactions and minting new coins is a computationally-low alternative to cryptocurrency mining.
Cryptocurrencies, especially older ones such as Bitcoin and Ethereum, are often accused of leaving too large a carbon footprint. But the industry is only 13 years old and understood the environmental crisis very early on.
Sumit Ghosh, CEO and co-founder of GARI-powered Chingari, said other crypto projects including Solarcoin, Powerledger, and Cardano have already started using power-efficient consensus algorithms.
âAmidst all these concerns, crypto projects identified environmental challenges at a very early stage in the journey,â he adds. âCrypt projects identified the problem fairly quickly and will address it soon.â