- Blockchain industry has now shifted to renewable energy usage with major consensus changes.
- BNB Chain and others are also updating their technology to reduce emissions.
The BNB Chain Investment Director, Gwendolyn Regina’s disquisition on “Blockchain Consensus Mechanisms and Their Role in Sustainable Blockchain Development”, has opened up the web3 initiatives to a greener and more sustainable planet.
Web3 and the blockchain industry have serious accusations of utilizing an immense amount of energy. The bitcoin mining mechanism was even pointed out for using more energy than any third-world country back in the years.
But, the industry has now shifted to renewable energy usage with major consensus changes. Regina’s above-mentioned article clarifies those new approaches put in use by various blockchain companies.
The Bitcoin Mining Council states:
“58.5% of the global mining industry used at least some sustainable energy in Q4 2021, up from 36.8% in Q1 2021.”
Blockchain Consensus Leading to Green Path
The article introduces one major terminology, which is ESG (Environmental, Social, and Governance). ESG is the score measured by the organization in the specified three metrics to maintain carbon neutrality as per globally agreed standards for a company’s operations.
Corporations are no more functioning just to bring out profits for the businesses, sustainability is only keeping them competitive and relevant in the field. The recent transition of the Ethereum blockchain from PoW to PoS is another example.
But PoS is not the only solution to this energy consumption issue. Proof-of-Authority (PoA) is one of those energy-efficient consensuses. The method only employs electricity for operation purposes.
Regina states:
“Its technical architecture allows high transparency and speed, making POA a pretty good solution for logistics applications (supply chain)”
Following the completion of its significant protocol update, Ethereum consumes at least 99.5% less energy. Other public chains like BNB Chain, Avalanche, Near Protocol, Algorand, and others are also updating their technology to increase productivity and reduce emissions.
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