The White House is looking for standards to be created to ensure clean energy uses in the cryptocurrency cryptocurrencies are digital currencies that use cryptographic technologies to secure their operation. industry, but was not afraid to call for bans if efforts are insufficient.
- White House released report on environmental impact of cryptocurrency mining.
- Report calls for more research and creation of standards for the sector.
- Ultimately, it suggests new restrictions for PoW mining.
- At the same time, he acknowledged that not all cryptocurrency is bad.
A new White House report addresses the energy implications of cryptocurrency mining and its impact on the environment and calls for greater efforts to reduce greenhouse gas emissions caused by such activity.
The White House Office of Science and Technology released the report in question this week, urging U.S. lawmakers and policymakers to conduct more research with the goal of generating standards for the cryptocurrency industry.
As reported by CoinDesk the 46-page document calls for federal agencies such as the Environmental Protection Agency and the Department of Energy to work with state and local officials to investigate the industry’s impact on the environment; and the intensity and source of energy consumed, noise pollution, water use and how to generate carbon-free energy to balance the consumption of such activity.
The report encourages in this regard the creation of standards to ensure, among other things, the use of clean energy, low water intensity and low energy consumption by the cryptocurrency industry.
The institutions “ should provide technical assistance and initiate a collaborative process with states, communities, the cryptoasset a cryptoasset is any digital asset that uses cryptographic technologies to maintain its operation as a currency or decentralized application. industry, and others to develop effective, evidence-based environmental performance standards for the design, development, and responsible use of environmentally responsible cryptoasset technologies “, says an excerpt quoted by The Block a file containing information on transactions completed during a given time period. Blocks are the constituent parts of a blockchain..
Possible restrictions on cryptocurrency mining
However, in the event that such efforts are not sufficient to reduce the environmental impact of cryptocurrency mining, the report suggests that implement more restrictive measures , incluyendo “ limit ” o “ delete “the activity.
Should these measures prove ineffective in reducing impacts, the Administration should explore executive actions, and Congress could consider legislation, to limit or eliminate the use of energy-intensive consensus consensus is achieved when all participants of the network agree on the order and content of the blocks in the blockchain. mechanisms for cryptoasset mining.
The report identifies the consensus mechanisms of proof of work (PoW) and proof of participation (PoS), used by Bitcoin the biggest and most popular cryptocurrency in the world. It is a decentralized digital currency that enables users to make trustless peer-to-peer transactions. as the two main ones among the projects Blockchain a distributed ledger system. A sequence of blocks, or units of digital information, stored consecutively in a public database. The basis for cryptocurrencies. and points to the first as the one with the highest energy consumption.
“ Global electricity generation for cryptoassets with the largest market an area or arena, online or offline, in which commercial dealings are conducted. capitalizations resulted in a combined total of 140 ± 30 million metric tons of carbon dioxide per year (Mt CO2/a), or about 0.3% of annual global GHG emissions “, the report says.
The paper also discusses how PoW mining such as that of Bitcoin can generate a negative impact on electricity grids . Cryptomining facilities can place additional stress on the electric grid causing power outages, fire hazards and equipment deterioration. This activity could also ultimately increase the average cost of electricity for local consumers and undermine U.S. sustainability goals, the report adds.
Depending on the energy intensity of the technology used, cryptoassets could hinder broader efforts to achieve zero net carbon pollution consistent with U.S. climate commitments and goals.
At the same time, the White House office acknowledged that not all miners contributors to a blockchain taking part in the process of mining. They can be professional miners or organizations with large-scale operations, or hobbyists who set up mining rigs at home or in the office. use carbon-emitting energy, however, the metrics are uncertain because there is still a lot of “carbon footprint” in the mining industry. uncertainty “The report called for more and better data on how much clean energy the industry actually uses. Along these lines, the report called for more and better data on the energy sources used.
The positive side
Despite the harsh focus, a final section of the report addresses some of the ways in which cryptocurrency could be beneficial to U.S. climate goals. CoinDesk In a smaller section, the White House favored the use of flared and vented methane to operate coal mining operations. Bitcoin .
“ While the EPA and Interior Department have proposed new rules to reduce methane for oil and natural gas a term used on the Ethereum platform that refers to a unit of measuring the computational effort of conducting transactions or smart contracts, or launch DApps in the Ethereum network. It is the “fuel” of the Ethereum network. *see Gas Limit and Gas Price. operations, cryptoasset mining a process where blocks are added to a blockchain, verifying transactions. It is also the process through which new bitcoin or some altcoins are created. operations that capture vented methane to produce electricity can generate positive climate outcomes by converting potent methane to CO2 during combustion “, the report says. “ [M]ining operations could potentially become more reliable and more efficient at converting methane to CO2 “.
Cryptoasset mining that installs equipment to use vented methane to generate electricity for operations is more likely to help U.S. climate goals rather than hinder them.
The report acknowledged that there are some cryptocurrency miners, such as those who buy or build new renewable energy capacity, and those who consume renewable energy that would otherwise be wasted, that lead to zero emissions. He also points to some ways in which the industry could contribute to clean energy generation.
The White House release comes in response to President Joe Biden’s executive order earlier this year, which called for efforts to minimize the environmental impacts of cryptoassets. Other agencies such as the Treasury Department and the Department of Justice have also responded with other reports addressing regulatory aspects of cryptocurrencies.
Article by Hannah Estefania Perez / DiarioBitcoin
Imagen de Unsplash