The Environmental Impact of Web3
The whole change, however, it cannot be denied that the discussed Web3 blockchain is also contributing towards environmental degradation by most of the energy-consuming proof-of-work (PoW) processes that waste energy for online currencies like Bitcoin. However, fast science comes with greener forms of blockchain technology aimed at reducing their carbon footprints.
One of the major moves to the greener version is the switch to proof-of-stake (PoS) consensus mechanisms. In PoS, instead of a lot of energy-intense mining, networks are secured by letting users validate each transaction based on their token holdings. For instance, Ethereum's power consumption dropped by over 99% after moving to PoS in the year 2022.
Another such new approach is that Layer 2 scaling solutions like rollups and sidechains process all transactions sort-off chain and finally settle in the main blockchain. This, of course, means lesser computation and, as such, lesser associated energy-utilization needs.
Further, a number of the projects have also included measures to reduce carbon offsets in their protocols. These platforms, for instance, will develop a carbon-neutral blockchain platform, which will be backed by an efficient consensus algorithm with carbon credit purchase, such as Algorand and Tezos.
Moreover, Web3 is supposed to be an enabling environment to achieve transparency and efficiency in climate action through tokenization and tracking along the supply chain at the carbon credit level. Just about the reflection of the manifest potentials that blockchain will have to invest in sustainability while attending to practical environmental concerns be applicable.
'Web3' could distinguish between improvements and degradation in the environment through the mechanism of adopting green technologies.
~ Regards,
VEIGO (Community Mod)
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