Crypto, Blockchain and the Environment

With the crypto world growing rapidly in size, many efforts are being made to optimize various processes like cryptocurrency mining but also to find real-world opportunities for the use of cryptocurrencies and Blockchain as a whole. This blog will discuss the effectiveness of mining techniques while focusing on the effect these have on the environment, as well as the future potential of Blockchain in environmental sustainability.

Cryptocurrency Mining

Although there are different methods of mining for cryptocurrencies, the most common is PoW or Proof of Work, which is the mining method used by crypto giants, Bitcoin. This method has long been viewed as an expensive and time-consuming task and has a reputation for hogging energy. PoW is a requirement to define a computer calculation that is performed in order to identify a new block. The data contained in each block is verified using algorithms that attach a unique hash to each block based on the information stored on it and miners continuously verify the hashes of transactions through the mining process in order to update the current status of the blockchain assets. PoW essentially rewards miners for performing these computer calculations with Crypto tokens. Due to the computing power required to perform these calculations en-masse, the size of some of these mining warehouses and the amount of energy…