Following the announcement that Tesla will no longer accept Bitcoin as a mean of payment for its impact of this currency on the environment, a new wave of questioning comes about cryptocurrencies. However, not all in their genesis have the same environmental impact.
The spectacular prices that bitcoin reached, its fall and the latest announcement by Elon Musk reignited the debate about high energy consumption and its polluting counterpart that causes the mining of the oldest, leading and most popular cryptocurrency in the global ecosystem of digital assets.
According to an analysis by the Center for Alternative Finance at the University of Cambridge (CCAF), if bitcoin were a country, it would consume more electricity per year than Finland, Switzerland or Argentina.
CCAF researchers determined that bitcoin mining uses about 121.36 terawatt-hours (TWh) of electricity per year. The reason is that the mining process requires gigantic servers that work around the clock to solve the sophisticated mathematical calculations that certify that cryptocurrencies are not used more than once and that no one enters the system and releases fake bitcoins.
However, not all cryptocurrencies carry this problem equally. Some alternatives generate less energy expenditure for its validation.
One of them is GBMcoin. This digital currency with an Argentine leg in its genesis is double green. On the one hand, because the acquisition of each of its tokens collaborates with the preservation of one m2 of forest or jungle at a simple calculation 1 Token = 1m2 of the preserved biosphere. This coin aims to preserve a total of one million hectares in ten countries around the world.
On the other hand, because “it is designed on the Ethereum blockchain, which represents 75% less energy consumption than Bitcoin,” explained Alejandro Carrano, Marketing Director and one of the Argentine founders of GreenBond Meter the global consortium that, with the pillars of Heimdall Technologies, in Estonia and Nideport S. A, in Uruguay, provide support to crypto.
GBMcoin is ecological on triple entry since the preservation and reforestation of these forests will generate the emission of a carbon bond (GBM bond). This bond is another green profit alternative associated with the project that the holders of this crypto active will be able to access and carry out through a preferential exchange. This currency is among the cryptos that are said to represent an evolution concerning the technology in which the oldest and most pioneering crypto Bitcoin was assembled there in 2009.
“Ethereum, the blockchain on which the GBM design was based, has already launched Ethereum 2.0, which replaces the algorithmic system PoW [Proof of Work, or proof of work] as a validation method to now incorporate PoS (Proof of Stake, or proof of stake) which will be even much more energy efficient since it will not rely on mining with GPUs as it is known today, “Carrano explained.
PoS is a consensus mechanism that does not consume energy to produce security as PoW does because is based on the fact that the untrusted nodes that intervene must provide proof of their interest in the system, that is, they have to demonstrate that they have dedicated a certain amount of resources to find the block (proof of work). Whereas In PoS the request for tests to validate is determined by the number of coins that the validator of each new block has. It is assumed (by consensus) that those who own more units of a PoS-based currency are especially interested in the survival and proper functioning of the network and are best placed to bear the responsibility of protecting the system from possible attacks.
Another important point is the case of “Pre-mined” coins such as GBM. These types of coins are issued directly by the developer and their cryptos can only be acquired through a purchase or assignment process determined by the developer to be used in carrying out transactions or operations related to the objective of the person who develops them and within their community. This supposes an additional saving of energy since the only way to obtain the currency is by purchasing it, while in others the mining process is essentially required and it is this type of crypto that is given as an incentive for the miner.
“We reckon that a new economic ‘genetics’ will allow values and ethics to inspire solutions where non-polluting structures are increasingly more economically attractive than those that do pollute. We understand that the world is in this process of transition and awareness ”, concludes Carrano.
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