Filecoin offers a solution to the bitcoin war on energy consumption


TL;DR Breakdown

  • Filecoin provides a solution to Bitcoin against its energy critics.
  • The system provides a database to measure the amount of energy consumed and what amount can undergo renewal.
  • It plans to measure the environmental impacts of non-renewable energy sources.

Filecoin might give bitcoin a way to show its energy critics the amount of energy it consumes. Through the Filecoin Green project, the firm can map the power consumed in the bitcoin mining process. The firm has initiated an open-source dashboard to show its dedication to renewable energy. The system is fundamental in cleaning up bitcoins dirty image. But only if they use it.

Alan Ransil, the system’s creator, said that it is up to bitcoin miners to choose whether they can use it. But, he added that bitcoin could establish a significant database through the system. The database could highlight their energy consumption. Besides, it can record the use of renewable energy. He added that one could use open-source solutions like the Filecoin dashboard to set up such a system. 

The system knows that storing data in a decentralized way and getting it consumes alot of energy. Also, the centralized web 2 is a high-power consumer platform. The Filecoin system has decided to estimate the energy used. Yet, it maintains that energy is not renewable unless verified through Renewable Energy Certificates (RECs)

Crypto’s carbon footprint

Filecoin has a mission. It plans to measure environmental impacts on a more decentralized internet. Also, to give people from various positions in the value chain to mitigate those impacts. At the epicenter system of its operation exists a reputable system. The system is verifiable and can operate much better than in Web 2.

The veteran bitcoin miners who worry about giving energy critics a chance feel slightly off. Yet, the system is like bitcoin in many ways.

The system relies on proof of storage consensus. The energy use is connected to the priceless resource people at the center of the enterprise. The system files and verifies them over time to confirm the storage of the files.

The drive for the use of renewable energy is on

So far, you cant find proof of stake version which uses zero energy for files storage. This is about a non-mining consensus that acquires new blockchain networks. But Filecoin is energy efficient. Thus the setting up of the system will help agitate for renewable energy. It’s a big, bold move that will make the firm a crucial player in the power markets. It also provides a strategic position to push green energy.

Ransil clarified that Filecoin had adopted a unique strategy in making renewable energy claims. They have deviated from using proof of work networks, unlike bitcoin. Filecoin claims seem to be pegged on surveys, which translates to represent the whole network.

According to Ransil, the data available is critical to use as a baseline. But, the industry should focus on acquiring renewable energy sources. The industry should show dedication to vigorous verification to get an authentic source.

Edith Muthoni

Edith Muthoni

Edith is an investment writer, trader, and personal finance coach specializing in investments advice around the fintech niche. Her fields of expertise include stocks, cryptocurrencies, blockchain, and cryptocurrency investments.

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