Cryptocurrencies are a hot topic. However, one area that significantly catches our attention and is a source of concern is the rapid energy consumption.
How Much Energy Do Cryptocurrencies Consume?
In November 2017, it was estimated that the energy consumed by the entire Bitcoin network was more than enough to power up the Republic of Ireland. And we expect this consumption rate to have gone higher now.
According to the estimates of Digiconomist, Bitcoin uses more than 42TWh of electricity per year, which is much more than Hungary and New Zealand and just behind Peru.
Naturally, this is a source of concern and needs immediate attention. Eric Holthaus, a Grist writer, suggests that at this rate, the Bitcoin network would use as much energy as the entire world uses today by 2020.
Thus, as more and more people are looking forward to embracing blockchain and the cryptocurrencies, it is essential that computer scientists solve the major challenge linked with it, which is to save energy.
According to Emin Gun Sirer, a Cornell University computer science professor, “Businesses have every incentive to avoid Bitcoin’s waste. It’s very, very expensive to run things the way Bitcoin runs things.”
This is perhaps why there is a growing need to develop green blockchain innovations to address the increasing demands of businesses for blockchain. This would not only help in saving energy but would also make the blockchain easily scalable for growing business needs. This would enable the processing of more transactions per second at a minimal cost.
On the same lines, one cryptocurrency that is making the headlines for all the right reasons is SolarCoin. As explained on their website,
“SolarCoin is an alternative digital currency that works like air-miles for solar electricity generation.”
First introduced in 2014, SolarCoin has gained immense popularity over the years. According to the figures present on their website, more than 3.6 million SolarCoins have been circulated so far in 54 countries, as of January 30th, 2018.
How is SolarCoin Changing the Cryptocurrency Landscape?
SolarCoin is an exciting green cryptocurrency that attempts to change the virtual currency scene with its green energy. So, how does it work?
Well, people get to earn SolarCoins for going solar. Here is a deeper insight into this:
- An individual receives one SolarCoin for generating 1 Mwh of solar energy
- In addition to earning SolarCoins by generating solar energy, individuals can also invest in SolarCoin through any cryptocurrency exchange just like Bitcoin
- However, to get the SolarCoin for free, the best way is to go solar and produce solar energy. This is similar to the idea of ‘Bitcoin mining,’ the only difference is that in the case of SolarCoin, you are ‘mining energy’ and making way for a greener planet!
A single Bitcoin transaction consumes enough energy to power 34 homes per day. Similarly, a single Ether transaction consumes enough electricity to power 2.55 homes per day.
We hope that SolarCoin would bring about a change in the way energy is being consumed by the cryptocurrencies today. Talking about which, ACWA power, the operator, and owner of various water desalination and power generation plants in 10 countries, announced the use of SolarCoin earlier this year.
ACWA believes that the adoption of SolarCoin would not only make way for an additional revenue stream but would also encourage the use of solar energy among investors.
The President and CEO of ACWA Power, Paddy Padmanathan said, “We are always looking for ways to adopt new technologies to add value and reduce cost in all that we do and blockchain technology in our view offers a yet untapped opportunity for the power generation sector.”
SolarCoin Seems to Have a Bright Future
It would not be wrong to conclude that SolarCoin is one step ahead in the cryptocurrency and solar communities respectively. It is definitely a future-oriented solution, which we believe is here to stay!
Further, it is the need of the hour to introduce more such solutions which could promote the use of green energy and make this world a better place to live in!
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