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The group is a private sector initiative aimed at making the cryptocurrency industry 100% renewable in energy use by 2030. The group is a partnership between Energy Web, RMI and the Alliance for Innovative Regulation ( AIR). The group brings together parties like CoinShares, ConsenSys, Web 3, Ripple, the United Nations and others who want sustainable blockchain and crypto technology.
Inspired by the Paris Climate Agreement, the agreement brings together the crypto and financial technology (fintech) industry to build a sustainable future for global finance with the support of the Climate Champions of the Framework Convention United Nations on Climate Change (UNFCCC).
“It’s about being energy efficient and making sure that the energy consumed is actually green,” said Walter Kok, CEO of the nonprofit. Energy web, in an interview with VentureBeat. “What these computers do is run a protocol to make sure you can trust the outcome in a more decentralized way. At the highest level, if we can make sure that these services are actually running on green energy, then we have a solution. Our job is to prove that the blockchain runs on green energy. “
With Energy Web, utilities that actually produce green energy, through wind turbines or solar power, can show where they get that energy and how it is used.
How big is the problem?
Bitcoin has a bad reputation. Cambridge University noted that the amount of electricity consumption for Bitcoin is about Norway’s production, but it’s not as much as all TVs in the US running on standby.
“Is it wasteful to keep your TV on standby?” It’s a judgment, ”Kok said. “This is why we are investing in the production of green energy.”
Kok said offsetting investments can also be made in the meantime to offset any non-green energy consumption.
Energy Web itself is working on a carbon-free blockchain with XRP Foundation and Ripple.
The growing demand for crypto and the accelerated adoption of blockchain-based solutions among businesses and individuals have highlighted a critical issue: the impact of the the growing energy consumption of technology on the global climate. As cryptocurrencies become more and more mainstream, it is imperative to move on to a renewable energy future now.
The goal is to create victories for both the planet and the global economy. For climate advocates, it can eliminate emissions from a rapidly growing electrical charge source. For the cleantech sector, it can integrate a whole new class of customers with high energy demand. For the crypto industry, this can help support the widespread adoption of crypto by creating a more sustainable and scalable industry.
It doesn’t say that the crypto industry should avoid regulation as well. Energy Web points out that electric cars will ultimately pose a greater challenge for the consumption of green electric energy. But that’s kind of like saying that regulators should go after this guy, not me. For the most part, Energy Web likes to stay out of these policies.
Yet Peter Bronski, director of web marketing for Energy, said in an interview that Bitcoin consumes around 136 terawatt hours of electricity per year. By comparison, China alone produced 2,200 terawatt-hours of renewable electricity. But of course, interest in Bitcoin is increasing and its market value has exceeded $ 1 trillion.
How it will work
The deal intends to achieve this by working with the cryptocurrency industry – including all blockchains – to switch to 100% renewable energy by 2030 or earlier. While many organizations are taking individual steps to decarbonize their operations, the agreement recognizes that an industry-wide coalition and scalable solutions can quickly multiply the impact.
The agreement will use a ‘big tent’ approach and serve as a coordinating framework to decarbonize all aspects of the industry. Energy Web, AIR and RMI have developed three high-level goals for the deal, which will be finalized with supporters ahead of the UN’s COP 26 Climate Conference later this year.
The objectives are to allow all blockchains in the world to be powered 100% by renewable energy by the COP 2025 Conference of the UNFCCC; develop an open source accounting standard to measure emissions from the cryptocurrency industry; and achieve net zero emissions for the entire crypto industry, including all business operations beyond blockchains and retroactive emissions, by 2040.
Energy Web has a proven track record in sourcing renewable energy and building tools to decarbonize blockchains. To help kickstart the deal, Energy Web will implement open source software and industry expertise to help crypto market players take short-term action and start decarbonizing the industry.
Cryptocurrency presents a unique problem. It cannot be hacked, or the digital currency could be gone in an instant. To make it foolproof, you need a large number of decentralized computers. Since every computer is difficult to hack, the blockchain ledger is secure and transparent, as every computer can be exploited as a source of truth. To secure cryptocurrency, it needs to have a large network, like Bitcoin and Ethereum do. More energy efficient networks can use fewer more reliable computers. These use different schemes such as “proof of work” or “proof of authority”. But then they can be hacked more easily, and they are also more centralized and therefore vulnerable.
But you can’t use so many computers that you use all the electricity in the world, especially for functions like mining, which produces more parts for a party that controls computers and uses them to solve problems. math puzzles. Bitcoin already exceeds a market cap of $ 1 trillion and is becoming more and more popular.
“Whether things are unnecessary is a matter of judgment,” Kok said. “I think the real solution is to convert all electricity production to green. This is what we are focused on. Let’s speed up the journey and, as a sector, invest in this area so that everything we use can be proven to be green. “
AIR will lead the engagement of key policy makers and regulators globally, as the renewed focus on sustainability presents a clear opportunity to develop and implement pragmatic and effective policies related to the energy sector.
JoAnn Barefoot, CEO and founder of AIR, said in a statement that as cryptocurrencies gain in popularity, so does their role in the global financial system. She said the goal in working with policymakers and regulators is to advance the debate on energy consumption so that all sectors can help address the growing challenges associated with climate change, including crypto and global finance, plus
Companies involved in the agreement include:
- Alliance for Innovative Regulation (AIR)
- D-REC Initiative
- Decarbbitcoin Laboratories
- Partners in energy peace
- Energy web
- I-REC standard
- Singapore Power Group
- Streambed Media
- Tom steyer
- UNFCCC Climate Champions
- Web Foundation 3
- XRP Ledger Foundation
“In addition to urgently phasing out future emissions, this industry is uniquely positioned to meet its historic emissions debt,” said Nigel Topping, High Level Champion for Climate Action at the COP26 of Nations United, in a press release. “The very nature of blockchains allows for historical system-wide transparency, making the debt of crypto issues a ripe target for carbon dioxide removal solutions. It’s a unique chance to publicly clean up the past, reject future emissions, and push the boundaries of climate leadership. “
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