Why green cryptocurrency
The global cryptocurrency market
Reportedly, Liu He, Vice Premier
To a greener future
Industry experts believe that green cryptocurrency industries such as renewable energy, carbon credit trading, and eco-friendly supply chain management, among others, can benefit from blockchain technology’s secure and transparent transactions. These use cases have the potential to extend beyond the financial realm, showcasing the adaptability and relevance of green cryptocurrency in sectors seeking eco-conscious solutions. As per several media reports, Ethereum underwent the Merge Upgrade in September 2022, shifting its mechanism from Proof of Work (POW) to Proof-of-Stake (POS), resulting in about 99.5% reduction in energy consumption. “ Greener protocols with lower energy consumption might be less susceptible to volatile energy prices. Embracing sustainability can improve the image of the cryptocurrency industry, attracting wider adoption and regulatory acceptance. However, it needs to be noted that green cryptocurrency is still nascent and might carry risks,” Gracy Chen, managing director, Bitget, a cryptocurrency trading platform, said.
It is expected that cryptocurrency largely remains a solution in search of a problem. “I doubt greening crypto mining will ease any of the fundamental concerns either the tech: large scale dispersed ledger updates are expensive and have latency problems that grow with size. So it makes blockchain hard to scale, and therefore for it to solve the problems it aims to solve, and that traditional systems have been solving seamlessly for decades at this point. Green crypto feels like another hopeful stab at relevance that might, unfortunately, be divorced from reality,” Utkarsh Sinha, managing director, Bexley Advisors, a boutique investment bank firm, concluded.