The crypto industry is evolving fast and with a growing emphasis on sustainability. Traditional cryptos like BTC have faced criticism multiple times for their high energy consumption. BTC annual energy usage rivals that of entire countries, leading to much carbon emissions per transaction.
In addressing the matter, the industry is moving toward adopting more sustainable practices. Ethereum and Dogecoin are a few examples of cryptos that have transitioned from the energy-heavy Proof-of-Work (PoW) approach to lesser-known and less energy-consuming methods such as Proof-of-Stake (PoS) systems. As a result of this transition, consumption of energy dropped by more than 99.9%, setting the stage for other cryptos to join in.
Some areas are also looking into better ways to utilize the excess heat that is normally wasted during data mining and crypto mining as well. Finland is a good example as Google is using seawater to cool down its data center and, during winter, uses it to heat up 80% of the homes in the area.
Also, companies like Marathon Digital Holdings are deploying heat recovery systems to benefit local communities. This showcases a potential symbiosis between technology and residential heating needs.
There are multiple challenges as well despite the progress. Construction of a massive Bitcoin mining facility by Riot Platforms in Corsicana - Texas, brought up a very heated discussion among locals of the area.
Residents expressed concerns about noise pollution, high energy consumption and potential impacts on property values. With such an issue at hand, it brought the need for balance between technological advancement and the well being of the community.
Looking at the regulatory side, There have been multiple and rising global discussions on the issue. A recent United Nations climate conference proposed a climate tax on crypto mining, aimed at generating up to $5.2 billion annually by charging $0.045 per kilowatt-hour used by crypto miners. The main initiative of this proposal was to seek to fund climate action and encourage cleaner operations in the crypto industry.
This shift toward adopting sustainable practices in the crypto industry might be the greatest single advancement to ever be addressed to date. Further innovative efforts from the community and designed supportive regulations will be necessary to bring forth a truly green blockchain future.