Sustainability is an important consideration for any system, including blockchain networks. All public distributed ledgers share a common goal, remain online under all conditions without losing user funds. A blockchain network that is not sustainable in the long term may not be able to continue operating, which can have significant consequences for the users of the network and the applications that rely on it.
There are several factors that can impact the sustainability of a blockchain network. The first generation of decentralized ecosystems like Bitcoin, require a consensus mechanism called proof-of-work (PoW) to validate transactions, add new blocks and stay secure. The energy consumption of cryptocurrency mining has been a topic of concern. The energy needed to power the computers used for proof-of-work mining often comes from fossil fuels, which can contribute to greenhouse gas emissions and other forms of pollution.
In order to minimize the carbon footprint, the general consensus is to move away from proof-of-work algorithms altogether and switch over to less energy-intensive methods with low environmental impacts: the so-called green cryptocurrencies. Did you know that one of the largest smart contract platforms in the world switched to a new algorithm called proof-of-stake, and reduced its energy consumption by 99.9%.
Proof of stake (PoS) is a type of algorithm used by some blockchain networks to achieve distributed consensus. In this system the creator of a new block is chosen in a deterministic way, depending on their stake in the network. This reduces the energy consumption drastically.
Overall, it is difficult to say to what extent cryptocurrencies are "going green,” as the energy consumption of the industry as a whole depends on a variety of factors. However, it is clear that there is a growing awareness of the environmental impact of the cryptocurrency industry, and that there are efforts underway to make it more sustainable. We at Boba are part of creating a blockchain industry that is open, fair and sustainable for future generations. And we are taking that responsibility very seriously.
All of Boba’s multichain deployments and therefore the whole Boba ecosystem are deployed on proof-of-stake blockchain protocols.
Boba climate projects
We partnered with Future Quest to contribute to a collective grand pool round (of $1M) for innovative climate projects. Creating an ecosystem that makes it easy, enjoyable, and rewarding for people to take action on climate change and make a real difference.