Mining Powered By Volcanoes: A Step Towards Greening Crypto

The rapid global growth of cryptocurrencies has benefited the world’s financial systems in many ways but has also raised concerns, particularly about the adverse environmental effects of mining. Policymakers around the world have been trying to solve the problem. For the crypto world to flourish further and maintain long-term sustainability, the copious amounts of energy being consumed need to be fed by healthier alternatives. According to a study conducted in 2018, Bitcoin emissions could single-handedly push global warming above 2°. How are new Bitcoins Created? The main method used globally for crypto mining is called Proof-of-Work (PoW). High-tech software is required to solve complicated math problems, the difficulty of which has been rising as better software and computers solve problems faster and faster. This creates a cycle of a large network of smart computers furiously working to be the first to work out the arduous problems, using unnecessary amounts of energy in the whole process. Another term for PoW is “mining”, as it is essential for the generation and in turn circulation of new coins. Bitcoin mining is done with Proof-of-Work. How can Crypto Reduce its Carbon Footprint? Fueling crypto mining with renewable energy resources instead of fossil fuels can be one step towards decarbonization. Another method that is being considered by various blockchains such as Ethereum, is shifting their mining process from Proof-...