Jan 7, 2025
Ibiam Wayas
Bitcoin may have revolutionized the financial landscape, but the process of mining new coins and securing the network comes at a substantial cost – a voracious appetite for electrical energy.
Bitcoin network reportedly consumes more energy than some nations. Consequently, this has thrust Bitcoin into the limelight, eliciting debates among environmentalists, policymakers, and industry stakeholders alike.
However, some things could be done to address Bitcoin’s energy problem, which has been a point of contention against the network for years.
Numerous startups have already begun exploring ways to mitigate Bitcoin’s carbon footprint by introducing more eco-friendly energy to Bitcoin.
Some cryptos have introduced pre-mining to circumvent wasteful computing. Pre-mining involves a central authority creating a set amount of an item and strategically releasing it into circulation.
Carbon credits, representing a government-approved allowance for a company to emit a specified amount of carbon emissions, can be traded between companies, incentivizing lower emissions and penalizing excesses.
Integrating blockchain technology into various economic aspects could reduce many businesses’ carbon footprints.
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