How We Can Solve the Cryptocurrency Energy Usage Problem
Bitcoin is still the most important cryptocurrency people know about, and it serves as the entry point of the crypto space. However, every innovative project has to pay its price. For Bitcoin, it is its high carbon footprint created by mining.
Bitcoin mining works by solving cryptographic puzzles, also referred to Proof of Work (PoW). The miner that’s first to find the solution receives a Bitcoin reward. However, this race towards finding the solution comes with high energy usage, as it’s a resource-intensive process requiring a lot of electricity.
Currently, Bitcoin mining uses 58.93 TWh per year. An online tool by the University of Cambridge showed that Bitcoin uses as much energy as the whole of Switzerland. More important is the carbon footprint of Bitcoin. The electricity generated for powering the Bitcoin network equals 22 megatons of CO2 on a yearly basis. You can compare this carbon footprint with the footprint of a city like Kansas City (US).
This article will cover the fol..