Crypto mining, especially Bitcoin largely depends on fossil fuel-based power grids, which contributes to global warming.
Pi Network is pushing forward a “planet-friendly” strategy, aligning it with the United Nations’ net-zero and decarbonization targets. Unlike traditional cryptocurrencies that rely on energy-intensive proof of work (POW) algorithms, Pi is designed to consume minimal energy in operation.
The UN’s Paris Agreement centers on limiting global warming below 2°C, preferably to 1.5°C. However, high-energy-consuming crypto, like Bitcoin, negatively affects the approach.
Pi Network is one of the several technologies to support this strategy of the UN. The network uses the Stellar Consensus Protocol (SCP), which allows users to mine coins on smartphones without high-powered servers or specialized hardware. It does not require massive energy consumption or generate substantial carbon emissions, which significantly contribute to global warming.
Dr Altcoin, a crypto analyst, stated, “Pi Network’s energy-efficient consensus mechanism directly supports these goals by consuming dramatically less energy.”
“Even with all 400,000 nodes running, Pi Network uses approximately 99.7% less energy than Bitcoin, operating at just about 0.3% of Bitcoin’s annual consumption (≈0.5 TWh vs. ≈170 TWh),” he added.
The massive electricity demand of crypto mining potentially increases the carbon footprint and strains local power systems, which leads to global warming. Despite introducing major initiatives and proposals to change the position of crypto mining, the Bitcoin industry still largely depends on fossil fuel-based power grids. This move is counterproductive to net-zero goals.
In 2023, the UN reported, “Bitcoin mining heavily relies on fossil energy sources, with coal accounting for 45% of Bitcoin’s energy supply mix, followed by natural gas (21%).”
The United Nations’s targets were formally introduced as part of the Paris Agreement on December 12, 2015, at COP21 in Paris. It entered into force on November 4, 2016, intending to be fully implemented by 2050. A crucial interim target is to reduce global greenhouse gas emissions by 45% by 2030, compared to 2010 levels.
Currently, several blockchain-based platforms are developing to track carbon emissions and manage renewable energy projects. These energy-efficient blockchain alternatives, like Pi Network, present a sustainable model to align with the UN’s environmentally friendly protocol.
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