Key Insights:
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Around 15.5 million nano transactions use the same energy as a single bitcoin transaction.
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Nano blockchain network uses an Open Representative Voting as a consensus mechanism, a variant of Delegated Proof of Stake.
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Nano is launching its asset-settlement network, designed specifically for CBDCs.
A recent report published by Allied Market Research noted that the global cryptomarket size is projected to reach $4.94 billion by 2030. The report said it would be a critical year for crypto and also for the planet earth.
By 2030, the planet needs a net-zero carbon global energy transition, which is a challenge to achieve with global warming levels beyond 1.5°C, per the IPCC climate change report. However, reducing fossil fuel use, improved energy efficiency, and the use of alternative renewable fuels could possibly change this.
There has been comprehensive reporting on its heavy energy consumption when it comes to cryptos like bitcoin (BTC). But this technology has the potential to decarbonize unreliable power grids and be a driver to meet climate goals faster.
As previously reported by FXEmpire, the energy consumption of proof-of-work (PoW) -based cryptocurrencies like bitcoin remains high compared to the proof-of-stake (PoS) consensus mechanism. The report also stressed how central bank digital currencies (CBDC) could adhere to sustainability.
For instance, the Nano network, a feeless sustainable digital currency, uses the same energy output as a single wind turbine.
FXEmpire spoke to George Coxon, Director of the Nano Foundation, on how Nano prioritizes energy efficiency.
Why are sustainability and efficiency integral to Nano, and what are its environmental goals?
I personally think we should all be concerned about environmental, social, and corporate governance (ESG) and make appropriate decisions, whether on an individual or corporate level, to tackle the climate crisis we are now in.
Our goal with Nano is to provide the world with a global, decentralized digital currency that empowers those most marginalized without fees while remaining eco-friendly. In 6 years since launch, over $42 Billion have been processed through Nano without a single fee.
The argument around the energy usage of bitcoin in the cryptocurrency space is not about who is right or wrong; it is fundamentally about progress. If a better solution comes along, you use it – that has always been the case with technological progress through the ages. Arguments around the energy consumed for the bitcoin network revolve around statements such as, ‘it uses renewable energy, so it’s fine’ or ‘It’s fine because the energy being used has already been created’ – this is the creation of a positive feedback loop of support and misguidances.