09 Feb 2023 Anthony Lehrman
Eco-Crypto Mining: Is It Possible?
It’s no secret that cryptocurrency is in the hot seat as the subject of intense global scrutiny. A widely discussed topic for discussion is the environmental impact that cryptocurrency have, especially when observing how mining works. Many experts in the field are making plans for minimizing the impact on the environment.
And that masterplan is called The Merge.
Let’s start from the beginning
The power behind crypto is based on the “Proof of Work” system, which forces computers to solve incredibly difficult and complicated math problems as a way to keep networks secure. This way, the system can’t be cheated. Proof or Work pulses at the very core of the crypto mining concept, but – at scale – it uses a lot of electricity.
Obviously, one way to use less electricity would be to find an alternative to the Proof of Work system – and that’s exactly what the crypto industry has been exploring for a while now. While Proof of Work relies on electricity-intensive computing power to curb cheating and fraud, its Proof of Stake counterpart could just be the answer – calling for users to stake crypto in order to be able to make a transaction.
Proof of Stake can be compared to making a deposit. Cheat, and you lose your capital. Get things right, and your deposit will be returned to you, unscathed. The concept of moving from Proof of Work to Proof of Stake is being hailed worldwide as a viable way to use far less electricity to keep the crypto industry secure. In fact, the Ethereum Foundation predicts that changing gears to this new model could see a near 100% drop in electricity consumption (99.95%, to be exact).
While Ethereum’s transition to Proof of Stake has been a hot rumour mill topic for almost a decade now, The Merge is finally happening – and the crypto industry is excited. However, it may be a while before we see significant results. Inside sources admit that it’s still too early to predict what the long-term impact of The Merge will be, but Ethereum is still pleased to be leading the way.
Bitcoin, on the other hand, is said to be unlikely to switch from Proof of Work to Proof of Stake. Industry experts remain convinced that Proof of Work is the only way to truly maintain a decentralized system that’s properly guarded against cheating and fraud. The problem with this is that Bitcoin mining will remain one of the biggest contributors to global warming worldwide – but one company has a potential solution.
PEGA Pool is an ecological mining pool committed to planting trees in an endeavour to offset the environmental damage caused by crypto mining (bitcoin mining in particular). They’ll be rewarding miners who are already mining BTC using renewable energy with a 50% lifetime reduction on pool fees, while miners who are yet to make the shift will have trees planted using a portion of their membership fees.
From Proof of Stake to PEGA Pool, things are looking a little brighter for the future of the crypto industry. And while we’ve still got a long road to walk on the journey towards net zero, every success story starts somewhere.
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