Shall we start a new conversation about “How can we afford to make crypto more eco-friendly”
It’s a topic that trouble’s me. Tell me about you!
Thanks in advance.
Hey @Yakusa2710, it’s already being worked on for Eth and will be established in Eth2 which is expected at the end of the year
Alternatively, you could look at the Tezos platforms such as H=N; it is a known that Tezos (XTZ) use about 2 million times less energy to mint than minting using Eth
I’m going to move the discussion to ‘General’ as this has no reason to be in the platform discussion group as “eco-friendly” is not something that the platform has a say on beyond choosing to use Eth
All the best and welcome
The good news most are making a push for cleaner energy, or already are. As mentioned ETH 2.0 will drastically reduce energy cost for ETH. Tezos and Stellar Lumens both also support NFTs and use an incredibly small amount of energy.
It’s worth noting as well that this “Energy Crisis” with crypto is also a point that is blown a bit out of proportion by crypto haters. Now yes there is an issue, and the crypto space can definitely do better so it’s great to see some momentum to reduce energy use in crypto and to power mining by even more renewable energy. See some of these quotes for what I mean, the reality is crypto is actually an incredibly green industry because the nature of mining incentivizes the use of green energy:
" During its wet season, half of the global mining takes place in one region of China – Sichuan. The reason is simple – the abundance of hydroelectricity in the region. During the rainy season, Sichuan’s electricity prices are as low as anywhere in the world. As a result, only 5% of Sichuan bitcoin mining power comes from nuclear or burning coal, and 95% is from renewables. The data clearly shows that miners will seek to use the cheapest source of energy ."
" Bitcoin mining is not constrained by locations. The operations can exist anywhere in the world, so the miners can utilize power sources that are inaccessible for most other applications. Let’s look at hydropower (a source of clean energy) as an example. Only 7% of the USA’s energy source came from hydropower, according to U.S. Energy Information Administration . But yet, hydropower makes up 62% of the mining energy"
" Crypto mining has simple math – lowering the cost of electricity is the biggest leverage to their profit margin. Therefore, the incentive is heavy for them to transition to clean energy where the cost is cheaper. What’s more, the demand for clean energy by the miners will incentivize utility companies to expand their renewable energy capacity long before battery technology is ready to make it viable to run the world 100% on clean energy."
TL;DR Energy is a major expense in crypto mining. Miners want the cheapest cost energy to maximize profits. Renewable energy is often the cheapest energy source, so huge amount of mining is already using renewable energy and probably is helping to develop/expand the green energy sector.
EDIT: accidently quoted same quote twice, fixed with quote I actually wanted
Well added @Hellbentaphid (and well said)
It’s also ignored that tangible painters such as myself are no longer jetting around the world to art fairs, distributing their artwork using conventional modes of transport, or generally consuming a lot of energy which the art world dictates as a must
And so while those painters are turning to NFTs there is no discussion or acceptance of the above paragraph that, as @Hellbentaphid correctly summarises, they are being ‘attacked’ by those that are wary/ignorant of the whole process and focus on the negatives rather than considering the big picture