Environmental challenges and benefits of cryptocurrency
In the past, we wrote about the shocking amount of electricity consumption required to scale data storage how to create your websites using green vendors. To recap, the world's data centers consume more power on average than all of the UK, which is currently 300 Terrawatts or three hundred trillion boiled kettles.
Some of the most exciting new modern technologies are cited as being eco-friendly alternatives to the existing financial model. I am of course talking about blockchain and cryptocurrency, how environmentally friendly are they?
According to thecryptocurrency.ie the energy footprint is highly variable depending on the technology. First-generation currencies such as bitcoin use energy-intensive methods to calculate transactions that require massive amounts of computational power. So much power in fact, that the annual energy consumption of Bitcoin is 5.7 Terrawatts, which is considerably more power than the entire country of Portugal (4.69).
While that is a terrifying statistic, we are assured the latest technologies are incredibly energy efficient. When considering investing in these exciting new technologies, please consider the carbon footprint and do your research. New coins such as Cardano are designed to scale through minimal energy requirements with performance to sustainability balance achieved through several powerful new technologies.
Cardano is not just sustainable, it is also one of the blockchain technologies with the greatest potential for social good. In many developed parts of Africa, you won't find telephone wires following along the roadside, and the reason for this is simple. They weren't needed when mobile telephones were more accessible, so parts of Africa skipped the telephone.
Similarly, Cardano (ADA) is one of the few cryptocurrencies aiming to serve underdeveloped nations by skipping the telephone and bringing digital banking to those without access. The potential to provide trustworthy circular supply chains and passports to refugees make this energy efficient technology very exciting. Let us know your thoughts in the comments or check out more sustainability tips here.