Smart contracts platform Algorand (ALGO) has partnered with climate change specialist ClimateTrade to launch a sustainability oracle to make its blockchain carbon neutral, according to an announcement yesterday.
To celebrate #EarthDay, Algorand promises to be the greenest #block with the news that the web is carbon negative!
We are excited about our efforts with @ClimateTrade and @AlgoFoundation to establish new sustainability standards via blockchain https://t.co/TMBPeQDEPf #greencrypto pic.twitter.com/XqsWB7s8yp
– Algorithms (@Algorand) 22. April 2021
Algorithms are being adopted at an accelerated rate and the network is expanding. As this period of hypergrowth continues, we believe it is essential to operate at a negative carbon level. In fact, sustainable growth is much better than growth, says Silvio Micali, founder of Algorand.
To achieve this goal, the sustainability oracle verifies the carbon footprint of the algorithm and captures an equivalent amount of carbon credits in the so-called green treasure, allowing it to manage the protocol as carbon negative.
Transition from neutral to negative
Micali also acknowledged that measuring the overall impact of a large decentralized network is nuanced and complex. That’s why Blockchain has partnered with ClimateTrade to go ahead and double down on its environmental awareness efforts.
Clean energy and the fight against climate change are priorities for the United Nations, but also for global organisations and governments. Alliances has a very low carbon footprint by design, and we are excited about the organization’s leadership role in making the next generation of blockchain environmentally friendly, added Francisco Benefito, CEO of ClimateTrade.
According to the latter, the algorithm network is already carbon neutral because it is based on the PoS (Proof of Fraud) consensus algorithm. Unlike the energy-consuming performance verification (PoW) protocols used by blockchains like Bitcoin and Ethereum, PoS requires much less energy and computing power.
While PoW-based networks rely on infinite computations performed by brute force on powerful computers, PoS blockchains inspect new blocks and allow users to lock (secure) their tokens and use them to maintain the network.
Problems with rapid growth
As mentioned earlier, the environmental impact of cryptocurrencies and non-disruptive tokens (NFTs) is quietly becoming a hotly debated topic. Just yesterday, a startup called Hitch announced a collaboration with artist Daniella Attfield to create an NFT artwork that could benefit the climate.
Mining cryptocurrencies generates a huge amount of energy and NFT uses far less, so using carbon credits for any artwork should be a requirement, not an exception, Hitch founder Skye Gilbar said in a statement.
On the other hand, payment processor Square and digital asset manager Ark Invest recently published a brief research report arguing that bitcoin mining can help accelerate the adoption of solar and wind power.
An edge in the cryptocurrency market
Get access to more cryptographic insights and context in every article as a paid Edge member.
Join now for $19 a month Discover all the benefits
Published: Adoption, technology