Written by 12:13 pm European Union

How Sustainable Are Cryptocurrencies And Digital Assets? – Fin Tech


To print this article, all you need is to be registered or login on Mondaq.com.

It was fascinating talking with Alex de Vries, the founder of
the cryptocurrency energy index Digiconomist, recently to talk
about the sustainability of cryptocurrencies and digital
assets.

Some key takeaways:

1. Empirical evidence shows the extremely high energy demands in
proof of work networks, such as Bitcoin

2. Ethereum’s merge to proof of stake is significant because
it shows that change to more sustainable options is possible if
there is a willing community

3. Decentralised systems will always be more energy consumptive
than centralised systems but the trade-offs need to be weighed
up.

It is also a fast evolving space and we are likely to see more
research into calculating the energy consumption of proof of stake
networks as well as reactions from regulators and policy
makers.

The Bitcoin network itself is responsible for more carbon
emissions than we are reducing by deploying electric vehicles
around the world. The network would be responsible for around 70
million metric tons of carbon dioxide every year, whereas we are
only saving or reducing our carbon emissions by 50 million metric
tons every year from deploying electric vehicles.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

POPULAR ARTICLES ON: Technology from European Union

FRAND Licence Agreements For Smartphones And IoT

Potter Clarkson

As our news roundup shows, competing or aligned commercial interests, alongside infringement and validity disputes, underscore the complexities surrounding FRAND licence agreements for smartphones and IoT.

UK Government Announces Its Proposals For Regulating AI

Reed Smith (Worldwide)

On 18 July 2022, the United Kingdom (UK) government set out its new proposals for regulating the use of artificial intelligence (AI) technologies while promoting innovation, boosting public trust, and protecting data.

Source link

Close