Why should green blockchain be at the bottom of the future financial paradigm?

With the advent of the adoption of Bitcoin, Ethereum, and other currencies, cryptocurrencies have quickly reached a crisis that must be addressed if they are to fulfill their adoption vows. This crisis is affecting the cryptocurrency mining of the ecosystem. As more and more energy is used to mine Bitcoin, and climate change becomes more serious, it is not only ethical but necessary to find an environmentally sustainable solution.

Fortunately, not all blockchains suffer from the same problems. Examples include the future Ethereum 2, Algorand, and Solana. These blockchains can support the same level of exchange, but at a fraction of the cost of energy.

What is mining? Why are you trying so hard?

block block

To understand what mining is, you need to understand how mining issues are solved. Each distribution must find a way to synchronize the state so that all participants are aware of the "true" state of the system. This is called an agreement. In the case of a blockchain, this means that every miner in the network must know the actual blocks of the blockchain. Without this knowledge, everything will come out of the joint and the system will be able to remove the two strings tied together as a single block. This desynchronization is called a fork.

To complete the deal, a decentralized system must have the system to determine which data is "updated" and to ensure that all participants in the system finally receive the updated information. Another problem with decentralized systems like cryptocurrencies is that you have to take into account the potential for “bad guys”. These "bad guys" can fail or maliciously provide inaccurate information. Decentralized systems should take this potential into account when attempting to obtain consent from “honest” participants.

Proof of work (PoW) mechanisms such as Bitcoin mining solve this problem. This is done by miners who solve very difficult math problems. This gives everyone involved enough time to get new blocks and come to an agreement. It also prevents bad guys from damaging my channel by making it include luxury items on my "bad" channel.

Participants are encouraged to solve this math problem because the participant can always add the next block and get all the rewards associated with it. This led to a competitive arm for many machines and more powerful tools to solve this math problem faster than others, creating the powerful cryptocurrency we know today.

Evidence: rough blocks

Old cryptocurrencies include Bitcoin, Ethereum, Litecoin, Dogecoin, Monero, and others. use proof of work. Although most cryptocurrencies haven't seen the size of the network change, Bitcoin and Ethereum have emerged and their environmental impact can be measured using the indicator.

Bitcoin mining consumes up to 130.78 TWh per year, or in Argentina. 1,585 kWh of power in exchange! This is the equivalent of the energy that an American household consumes in two months. Ethereum uses less energy, but still has more money. The total network is equivalent to 59.94 TWh per year, which is the electricity consumption in Portugal. Each industry generates 119 kilowatt-hours of electricity, which is equivalent to the electricity consumption of an average American household for four days.

There is no doubt that cryptocurrency mining is facing this problem. On a scale, this is a pure practice.

Proof of Stakes: Green Option

New features like Algorand, Polkadot, and Cardano, along with the Ethereum 2.0 (eth2) update, use a different approach called proof of stake. The proof of the stakes rested on financial support, not on mathematical difficulties. Each network uses different proofs, but in reality they all have a system in which participants with multiple coins get more votes.

All of these systems are better than PoW because they allow you to easily use a modern computer. The new version of Eth2.0 only uses 0.035 TWh per year. Cardano expects to have a similar number of users as they perform tasks with similar power. Polkadot seems to offer more solutions, but the reason is the loss of decentralization.

Algorand: Did you see?

Like Eth2, Algorand used evidence of stake and was very strong. One thing that sets Algorand apart from similar candidates is his sacred stake priesthood. Pure proof of stake enables full operation of ultra-low power processors. This machine uses around 3 watts, so it only uses 0.007 TWh to run the same number of validators per year. This is 5 times better than the recommendation of Eth2 or Cardano.

Also, unlike Polkadot, Algorand could be more affected because the vote was distributed to hundreds of thousands of endorsers rather than thousands of acquaintances. In short, as Bitcoin may reach an ecological crisis, new cryptocurrencies like Algorand are paving the way for a more environmentally sustainable future.

Algorand can handle more than 1,200 transactions per second and will soon reach 3,000 tps with the final instant. It also has a special pipeline block which results in a performance of over 45,000 rpm and further increases the capacity. The maximum assets of Algoland are 10 billion Algos. Algorand's average exchange rate is 0.001 algo. Algorand is also referred to as Ethereum Killer due to its high volume per second of product and very low cost compared to Ethereum. So many dapps have moved from Ethereum to Algorand.

Algorand achieves high block values ​​with a two-level lighting system. Layer 1 is for simple smart chain contracts. Algorand uses a combination of Layer 1 scripts in a new language called TEAL. Layer 2 is used for many smart contracts that require longer execution time or require access to output data. When the process is complete, only the result and the certificate confirm that it is added to the chain. In addition to the two-step process, Algorand has also started to work together. CoChain is a personal blockchain developed by the Algorent protocol. Many other blockchains also offer collaboration features, but Algorand also allows users to seamlessly transfer data to other chains.