These days, the environment and renewable energy are at the heart of our concerns, and rightly so. So it's only logical that when we talk about cryptocurrencies, we wonder about their ecological impact. There are a lot of misconceptions about this. In this article we're going to present three points that will prove to you that Web3 technologies are not harmful to the environment.
A decentralised system
First of all, blockchain operates on a decentralised system. This means that cryptocurrencies such as the famous Bitcoin are managed by their users and not by institutions. As a result, transactions are more efficient because they are based on a mining system. Reducing the number of intermediaries involved in transactions also reduces the amount of energy used. The fewer people who need to be consulted or approached to transfer money from one wallet to another, the fewer machines are needed.
There's also the fact that no paper is used, which reduces the impact of deforestation. This is an important point to note. Paper production accounts for a large proportion of an industry's carbon footprint. By choosing to rely on technology and technological devices, Web3 companies are helping to create a new vision of finance. Finance that is decentralised, greener and more sustainable.
The use of renewable energy
It's also important to mention that the companies that create cryptocurrencies want to reduce their ecological impact. It is not unrealistic to imagine a system based on several energies such as solar, wind or even solar power. Those convinced by the positive impact that Web3 technologies will have on the future are in the best position to imagine it.
One example is Solar Coin (SLR). An initiative which, as its name suggests, aims to promote solar energy. For every megawatt-hour generated using this energy, a token is automatically created. This kind of initiative promotessustainable alternatives while taking advantage of the decentralised system.
Another example isAlgorand (ALGO), another cryptocurrency. The latter has signed a partnership with ClimateTrade, environmental specialists. As a result, Algorand plans to become the first carbon-neutral cryptocurrency. It's a positive project that could motivate some to do the same.
Fewer staff
In 2021, the financial sector in the United States will employ 6.55 million people. Because of its centralised nature, this sector needs more staff to function. If we unroll our train of thought a little, we can only imagine the pollution generated by such a mass of workers. Just think of the energy spent on transport, for example.
Energy expenditure can also take the form of business trips. These can involve using planes and cars, as well as booking hotels. All this contributes to excessive and harmful pollution. This is one of the disadvantages of such a large sector, which encourages excessive consumption.
According to a study conducted by Block Research, for cryptocurrencies the number of employees amounted to 82,000 people in 2022. Bearing in mind that only a tiny proportion comprise businesses, the energy cost caused by these employees is much lower than for the traditional sector. This is because there are fewer business trips. But the mentality is also different. When Satoshi Nakamoto published his white paper, he proposed a popular way of thinking about finance. This has an influence on the DeFi sector, which thinks with Nakamoto's wishes in mind. Namely, the fact that a cryptocurrency must be accessible and respectful of its users.
This article is intended to be positive, and we feel it is important to qualify the comments generally made by certain media. It is important to take a step back and recognise that each cryptocurrency is different. But above all, an effort is generally made to reduce the ecological impact. This is achieved through various measures, which we have endeavoured to present to you.
