by David DeMayo
Sesame Street’s lovable character Kermit the Frog laments in song “It’s not easy being green”. But I disagree with him wholeheartedly. Kermit did a terrific job of being green, he just lacked a little self-confidence. Or was he profoundly seeing into the future? Either way, here we are in the present, and as a community, society and a planet we truly need to be green!
Cryptocurrency mining is feeling the mandate to be green. Our fledgling business enterprise now has the opportunity to become the international leader in how to agilely and rapidly re-tool our networks into the green alternative. This must be done as quickly as possible to survive. And that's a good thing… we are a young industry, and we're smart and not stuck on the past rules of engagement and financial alliances (entanglements) as are so many others. By acknowledging the faults inherent in our systems now and moving forward to correct them, we can save a lot of time and expense.
Bitcoin’s trust-minimizing consensus has been enabled by its proof-of-work algorithm. The machines performing the “work” consume huge amounts of energy while doing so, and this consumption continues to increase. The insight into just how immense this energy consumption is has raised awareness about the unsustainability of the proof-of-work algorithm. As continuous mining can provide a solid stream of returns, people all over the world have been motivated to mine Bitcoin and run these power-hungry machines.
Over the last few years, the total energy consumption of the Bitcoin network has grown to epic proportions. The entire Bitcoin network now consumes more energy than several individual countries. And this is just part of the problem. The network is mostly fueled by coal-fired power plants in China.
Coal-based electricity is available in China at very low rates. Even with a conservative emission factor, this results in an extremely large carbon footprint for each unique transaction. Mother Earth is undoubtedly feeling the impact.
Back to the notion “we are young and we are smart…” Something must change and fast. So, let’s do it. There is a practical solution to halt the massive energy consumption: it’s Proof of Stake mining. Syntropy Cloud Mining uses a consensus system in place of the Proof of Work algorithm. Proof of Stake networks use only .004% of the energy necessary for Proof of Work networks. Our machines are web servers and take only two amps to run.
We are 100% off the grid running on solar energy. One of our web servers can run for 50 hours on one battery without sun. If we stay true to the initial intention of having a truly decentralized community, then it is imperative that we do not compete with faster and faster machines that use more and more electricity. This will only lead to a more centralized system with massive data centers and equipment hooked up to the backbones of power stations.
Essentially, miners have been flocking to places where there is a stable government, very cool temperatures and inexpensive renewable power. That is the beginning of the centralization process itself. This trend does not have to continue. We can halt it before it gets any further along. Exchanging Proof of Work for Proof of Stake networks right now will move us in the direction of greater sustainability, it will work to ensure a decentralized, distributed network, and it will help lower the carbon footprint of the industry.
As we move and continue to grow in the sustainable green direction, everyone benefits in the crypto community and on the planet at the same time. We need Proof of Stake mining to take the green lead and turn the direction of the industry now.