What is Crypto Climate Accord signed by Ripple?

Crypto Climate Accord signed by Ripple

Cryptocurrency mining was one of the central themes during World Environment Day on June 5. Thus, and in response to the doubts raised, a group of private companies dedicated to the creation of blockchain announced the creation of the Cryptoclimatic Agreement (CCA, for its acronym in English). Inspired by the Paris Agreement, the CEC ratifies its commitment to using only renewable energy to supply all blockchains by 2030 or even earlier, as well as to completely eliminate greenhouse gas emissions by 2040 with the help of the United Nations Framework Convention on Climate Change.

This agreement has the support of several prominent personalities and firms, such as Ripple, Consensys, or Tom Steyer, the billionaire businessman and liberal activist, and the “Champions of the Earth”, awarded by the United Nations assembly for their commitment. with the planet, they were also in favor of this initiative.

However, the CEC’s great and noble theoretical projects may be of little use in the real world. After all, many voices are raised to denounce that not even the Paris Agreement, an official agreement signed by nation-states, has managed to meet the agreed objectives. So what can we expect from the resolution adopted by the CEC, promoted by actors from the same committed industry, albeit with government support and regulation? We are talking in the practice of an industry that promises to regulate itself, but will companies in the cryptocurrency sector really take responsibility for their actions?

Clearly, signatories in the crypto sector need only make minimal effort to adhere to their own goals.

Read a little about the different cryptocurrencies on the market (for this, we suggest you consult our extensive knowledge base) and you will get a little light on Ripple. In effect, XRP does not use the Proof of Work (PoW) consensus protocol, which carries excessive power consumption. Instead, it uses the Proof-of-Stake (PoS) consensus model, so XRP’s environmental impact is minimal compared to Bitcoin’s.

The future of cryptocurrencies seems to be linked to the PoS consensus protocol, increasingly used by the sector. As an example, Ethereum (ETH) has started the transition from the PoW protocol to the PoS protocol, which will undoubtedly contribute to reducing the currency’s carbon footprint. However, if there are only companies that use the PoS model among the signatories of the CCA, it is unlikely that the initiative will help in the least to reduce the impact of blockchains that use the PoW protocol. This is especially the case with BTC, not regulated by any entity that can initiate the change, and which does nothing but publicity in favor of Ripple and the other cryptocurrencies.

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Is Cryptocurrency Mining Sustainable?

Global Bitcoin mining is “eminently sustainable”, as well as still very profitable.

Bitcoin miners are aware of the blisters raised in society by the high energy consumption of their operations and have taken steps to convince the public of their commitment to a greener energetic model. Thus, a report recently published by the recently created Bitcoin Mining Council (BMC) states that the energy supply required for Bitcoin mining worldwide comes mainly from “sustainable energy”.

In its report, the new body indicates that “both the members of the BMC and the participants in this survey have a mixed supply of sustainable energy in 67%”, and ensures that sustainable energy is responsible for 56% of the operations of Bitcoin mining around the world.

As with the CCA, the BMC arises as a result of collaboration between various companies and private sector agents, such as Michael Saylor, CEO of MicroStrategy. It is more than likely that those firms that operate in a less sustainable way decide to stay out of this project and the data obtained is biased, since the Mining Council only analyzes the member companies of the organization and therefore reflects the interest of these companies. for projecting an image committed to the environment.

The report even goes so far as to show the recent decline in Bitcoin’s hashrate, confirming that it is the “May linear decline in hash rate in the history of the cryptocurrency.”

However, this reduction of almost 70% in the processing capacity dedicated to mining Bitcoin is mainly due to the tough measures against the mining of BTC adopted by China. Such has been its impact that many miners are moving to other regions or even selling their equipment, which could end up being beneficial in case of reducing the environmental impact of Bitcoin in those regions with stricter environmental controls. Despite the fact that the Bitcoin hashrate remains low, its profitability remains high, mainly due to the fact that the resulting benefits are distributed among a smaller number of users.

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Take advantage of BTC mining without wasting energy

Bitcoin does not at the moment intend to stop using the PoW protocol, but that does not mean you need to buy a power plant to power your mining operations since some companies have come up with innovative solutions to share the benefits of BTC in the cloud. The undisputed leader in this is the crypto exchange StormGain, which makes its exclusive Bitcoin “Cloud Miner” available to its users in the cloud. In this way, users can mine Bitcoin while using the platform to buy, sell and exchange crypto assets, and the mined BTC will be deposited in their account, all without depleting the resources of their smartphone or computer equipment. Click here for more information on the exclusive StormGain Cloud Miner. This type of novelty is a good option to obtain benefits in the form of cryptocurrencies without the need to consume too much energy, and they constitute an economical and environmentally friendly alternative to the purchase of mining equipment.

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