Cryptocurrencies have been around for quite a while, and the popularity of digital currencies continues to grow at a rapid pace. But, while they quickly become a symbol of money, they also have a negative impact on our environment.<\/p>\n
In order to validate new transactions before they are included in the permanent record, computers compete across the system to solve mathematical puzzles. This process, known as proof-of-work, allows participating computers known as miners to earn a reward in Bitcoin for their actions.<\/p>\n
In the beginning, the process used less electricity. However, as more people participated in the process, crypto mining became an industrial activity that consumed a large amount of energy.<\/p>\n
The Cambridge Bitcoin Electricity Index estimates that Bitcoin alone consumes 142.84 terawatts of electricity a year.<\/p>\n
Proof-of-work is a dangerous way to extract bitcoin because it produces a large amount of fossil fuels, which in turn has a negative impact on the climate and the environment.<\/p>\n
Miners are exploring other ways to mine cryptocurrencies, including proof-of-stake.<\/p>\n
So, instead of requiring people to solve complex mathematical puzzles, as proof-of-work does, proof-of-stake requires people to use their own currency as a bet and then randomly select it to confirm transactions, which is how they earn more currency.<\/p>\n