Carbon Neutral Blockchain Protocol
7 Feb 2022 | Blockchain, clean Techh||Traceability
Blockchain has been the potential to affect sustainability reporting. At its core is the ability to create records that are more credible and more resistant to fraud – similar to sharable online documents in which anyone can see or prevent manipulation of records. Blockchain solves problems regarding the lack of information. With its transparent, unforgeable, and secure data, everyone could have access to a substantial amount of information.
Emerging technologies like blockchain have a crucial role in energy transition and achieving the Paris climate goal of 1.5 degrees, as they can become a technological bridge towards the energy transition of the 21st century. To evade climate risk, the net carbon emissions of our planet need to be zero by 2050, limiting global warming to 1.5 °C. This need has accelerated the energy transition towards decarbonization, digitization, and decentralization.
Different blockchains have distinct consensus protocols and algorithms used to verify transactions. Proof of Stake (PoS) and Proof of Work (PoW) are the two most common consensus protocols to date, though others are emerging.
The early-stage blockchain protocols that adopt proof of work mechanism challenges the environment due to the high level of energy consumption. However, the evidence of the staking mechanism of second-generation blockchain protocols and the lower level of energy consumption is promising for this challenge.
By design, proof-of-work blockchains require high levels of energy consumption, and in fact, high energy consumption is a cost that inherently prevents the addition of malicious blocks. Instead of using computing power to verify transactions, proof-of-stake blockchains verify transactions by locking away some coins as “stake.” In turn, the stake gets an additional reward for successfully verifying the transaction or destroyed if there is a mistake or fraud.
Consumption of Energy
As blockchains use an enormous amount of energy, instead of using non-renewable sources of energy, renewable sources of energy can be preferred for power production. Integrating renewable energy sources as the resource comes with an opportunity to utilize the unemployed resources less harm the environment.
- 100,000 visa transaction consumes 148.63 kwh
- 1 Ethereum transaction consumes 136.35 kwh
- 100, 000 Rubix transactions consumes 0.174 kwh
Renewable energy sources cause less pollution and will not increase the carbon footprint. Reducing the energy consumption of the blockchains is the need of the hour. If these challenges can be overcome, blockchains will become the best option for the future world.
Comparatively, it can also be seen that Proof-of-Work uses the maximum energy. So, switching to other protocols like Proof-of-Stake or DPos or Proof-of-Authority can help in reducing the energy consumption for validating blocks or transactions.
List of Consensus Protocol
- Proof of Work: A compute-intensive protocol with proof of security; suitable for permission-less blockchain networks but can also be used in permissioned blockchain networks to increase security. The Bitcoin blockchain uses this protocol.
- Proof of Stake: A low-energy consumption protocol that is suitable for healthcare applications operating on permission-less or permissioned blockchain networks.
- Mining Diversity: A round-robin, low-energy consumption protocol designed explicitly for permissioned applications. Variations can be designed to suit various needs.
- Kafka: A voting-based, low-energy consumption protocol that can finalize the consensus decision faster (at least initially), but requires more time as the number of nodes in the network grows.
- Proof of Elapsed Time: A lottery-based, low-energy consumption protocol that can scale well for a network with many nodes while needing more time to reach consensus.TRST01 Point-of-View; Importance of Traceability:Traceability is critical to achieving and communicating Sustainable Development Goals SDGs and the overall Environmental Social and Governance ESG strategy. Establishments must be sure that they have an entire record that authenticates their communication when expressing their sustainability success stories to the world. Simply setting goals isn’t sufficient: in a world where ESG efforts are coming under increasing scrutiny, not only by the regulators but also by increasingly conscious consumers, it is time to show some evidence.Conclusion:The role of blockchain in the context of sustainable infrastructure is considered to be far beyond enabling efficient data collection, monitoring, reporting and steering services. The core competencies of TRST01 are Trust, Transparency and Traceability, which we believe can be leveraged to drive the complete changes needed to deliver sustainable infrastructure related to any use-case scenario of Industry 4.0. Blockchain can be deployed in more energy-efficient ways depending on network architecture and choice of protocols.ReferenceGitHub – aridiosilva/Blockchain: Referred as Distributed …. https://github.com/aridiosilva/Blockchain
Share Blog on: