Algorand (ALGO) sets sights on becoming a ‘carbon-negative’ blockchain

Smart contracts platform Algorand (ALGO) has partnered with carbon offset specialists ClimateTrade to launch a “sustainability oracle” that should help make the blockchain “carbon-negative,” according to an announcement published yesterday.

“Algorand is experiencing accelerated adoption and network expansion. As this period of hyper growth continues, we find it crucial to operate at a carbon-negative level. Indeed sustainable growth is way better than growth,” said Silvio Micali, founder of Algorand. 

To achieve this goal, the sustainability oracle will notarize Algorand’s carbon footprint and lock the equivalent amount of carbon credit in a so-called “green treasury,” allowing it to run the protocol as carbon-negative.

Going from neutral to negative

Micali also acknowledged that measuring the global impact of a large decentralized network is “nuanced and complex,” thus the blockchain has teamed up with ClimateTrade “to continue and double-down on our eco-conscious efforts.”

“Clean energy and addressing climate change are priorities for the United Nations, global organizations and governments alike. Algorand has a very low carbon footprint to begin with, and we are inspired by the leadership role the organization is taking to ensure the next generation of blockchain adoption is environmentally friendly,” added ClimateTrade CEO Francisco Benefito.

Per the announcement, Algorand’s network is already carbon-neutral due to the fact that it’s based on a proof-of-stake (PoS) consensus algorithm. Unlike energy-intensive proof-of-work (PoW) protocols used by blockchains such as Bitcoin and Ethereum, PoS requires significantly less electricity and computational power.

This is because while PoW-based networks rely on endless calculations made through “brute force” on powerful computers, PoS-blockchains validate new blocks by allowing users to lock up (stake) their tokens and utilize them to help maintain the network.

Rapidly growing concerns

As CryptoSlate previously reported, the ecological impact of cryptocurrencies and non-fungible tokens (NFTs) is gradually becoming a widely discussed topic. Just yesterday, a startup called Hitch announced its collaboration with artist Daniella Attfield to create an NFT art piece that could benefit the climate.

“Mining cryptocurrency creates a tremendous amount of energy and NFTs use much less— which is why using carbon credits for any art piece should be a requirement, not the exception,” Hitch founder Sky Gilbar said in a statement.

On the other hand, payment processor Square and digital asset manager Ark Invest have recently published a short research report, making an argument that Bitcoin mining can actually help to accelerate the adoption of solar and wind power facilities.

The post Algorand (ALGO) sets sights on becoming a ‘carbon-negative’ blockchain appeared first on CryptoSlate.

Share:

Share on facebook
Facebook
Share on twitter
Twitter
Share on pinterest
Pinterest
Share on linkedin
LinkedIn

Follow Us

Most Popular

Get The Latest Updates

Subscribe To Our Weekly Newsletter

No spam, notifications only about new products, updates.
On Key

Related Posts

Bitcoin Price is CONSOLIDATING! Is an Uptrend coming soon?

The crypto market witnessed yet another crash last week. Bitcoin prices were expected to hold the $20,000 price mark, but failed to do so as prices fell and reached a low of $18,500. Today, this low price turned to become a strong support for the medium-term. Will Bitcoin go up? Is the Bitcoin consolidation a

21Shares Establishes New Bitcoin ETP In Switzerland

21Shares AG, a Swiss financial technology company, has announced the launch of its new exchange-traded product (ETP) dubbed the 21Shares Bitcoin Core ETP. The ETP went live on Wednesday, trading on the SIX Swiss Exchange with the ticker CBTC. The 21Shares Bitcoin Core ETP is tailored for the bear market Taking to Twitter, 21Shares introduced

Bitcoin Hovers Around 20K; Will It Recover?

The world’s largest cryptocurrency, Bitcoin’s (BTC) price has registered a drop of around 56% in the second quarter of 2022. This has been recorded as the worst drop over the last 11 years. Bitcoin registers 2nd worst quarter According to Arcane Research, the unfavorable macroeconomic outlook has affected the global crypto market. However, it is