Are cryptocurrencies green? [Vídeo]

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intercambios centralizados de criptomonedas.jpg
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Cryptocurrencies are, without a doubt, one of the most controversial issues within new technologies. And not only because of the possibility of pyramid schemes, theft or their real usefulness… but they have also been pointed out as something harmful to the environment. In today’s video, we tell you if cryptocurrencies are green or not.

First of all, you have to understand that any digital activity consumes energy, and even more so if it is online. Whether using Twitter, Instagram or any social network, shopping on Amazon or playing LoL, the associated energy cost of all the equipment that supports these activities is not small, especially when they are on a large scale.

Whether or not a cryptocurrency requires a lot of electrical energy has to do with the verification protocols used by its blockchain networks.

And this is exactly what happens with cryptocurrencies. Being so widespread and depending on the thousands of computers that make up each of the blockchain networks, cryptocurrencies consume energy by the mere fact of existing. However, a factor of a specific type of cryptocurrency means that, in effect, some of them require an enormous amount of energy.

This type of cryptocurrencies are those that use a proof-of-work (PoW) protocol, which means that in order to exist, it is required a lot of teams trying to fix crypto issues. Roughly speaking, this is known as mining, which we talked about in this other video.

This process demands enormous amounts of processing power, often obtained through the massive use of graphics cards, which has led to cryptos in general being seen as large demanders of electrical energy.

However, not all cryptocurrencies have a PoW protocol, although some of the most important ones, such as Bitcoin, use this protocol. Many others, like Ethereum for a couple of days (before that, ETH was a PoW currency) use a proof-of-stake (PoS) protocol that consumes much less energy.

The fact that Ethereum has abandoned the PoW protocol in favor of a PoS one, combined with all the crypto startups that are born directly with PoS, makes the future of crypto much greener than it was years ago.

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Brian Adam
Professional Blogger, V logger, traveler and explorer of new horizons.