The Greening of Cryptocurrency: Early Players in Sustainable Blockchain
A cryptocurrency mining module next to a solar power array. (source: BusinessWire)
will be greener. It is inevitable.
There are a number of promising initiatives underway to improve the energy profile of Bitcoin and other cryptocurrencies and accelerate the shift to a sustainable blockchain sector. These include more use of renewable energy, but also a range of other initiatives to embrace more energy-efficient protocols, carbon offsets, demand response and greener mining pools.
The past week’s selloff in the cryptocurrency markets has focused attention on Bitcoin’s energy usage, and its reliance on fossil fuels for the mining operations that secure its blockchain operations. A recent study by Cambridge University found that about 39 percent of the Bitcoin network is powered by renewable energy. This is an international challenge, as the U.S. represents about 7 percent of the global hashrate, compared to 65 percent for China.