Cryptocurrencies are without a doubt one of the most controversial topics within new technologies. And not just because of the possibility of scam pyramid schemes, robberies or their real usefulness… but they have also been named as: something harmful to the environment. In today’s video we tell you whether cryptocurrencies are green or not.
First of all you have to understand that every digital activity consumes energy, and even more so when it’s online. Whether you use Twitter, Instagram or any other social network, shop on Amazon or play LoL, the associated energy costs of any equipment that supports these activities is not small, especially if they happen on a large scale.
Whether or not a cryptocurrency requires a lot of electrical energy has to do with the authentication protocols used by its blockchain networks.
And this is exactly what is happening with cryptocurrencies. So widespread and dependent on the thousands of computers that make up each of the networks blockchain, cryptocurrencies consume energy by the simple fact that they exist. However, a factor of a specific type of cryptocurrency means that some of them actually require a huge amount of energy.
These type of cryptocurrencies are those that use a proof-of-work (PoW) protocol, meaning it is required to exist many teams trying to solve crypto problems. Roughly this is known as mining, which we’ve had it in this other video.
This process requires huge amounts of processing power, often gained through the massive use of graphics cards, which has led cryptos to be generally viewed as major users of electrical energy.
However, not all cryptocurrencies have a PoW protocol, although some of the major ones, such as Bitcoin, use this protocol. Many others like ethereal since a few days (before that time ETH was a PoW currency) they use a protocol proof of commitment (PoS) which consumes much less energy.
The fact that Ethereum has left the PoW protocol in favor of one PoS, combined with all newly created cryptos born directly with PoS makes the future of cryptos much greener than years ago.
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