June 1, 2021
Most cryptocurrencies need energy-intensive computers to keep the market moving. A new verification model could remove the need for those machines.
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It’s no secret that cryptocurrencies are notoriously bad for the climate.
Right now, Bitcoin uses as much energy as Pakistan and has a carbon footprint comparable to Libya. Ethereum, another popular cryptocurrency, uses the same amount of electricity as Singapore.
But there is a solution on the horizon. Experts think that a switch from the proof-of-work system to a proof-of-stake system could drastically reduce cryptocurrency energy usage. Let s explain what that means.
Currently, cryptocurrencies like Bitcoin or Ethereum operate on a proof-of-work system, which uses power-hungry, specialized computers to verify transactions for people sending cryptocurrencies on a ledger known as a blockchain.