What is Renewable Energy?
Let's find out Renewable Energy meaning, definition in crypto, what is Renewable Energy, and all other detailed facts.
Renewable Energy is a type of energy that renews itself based on a specific period of time. It’s usually powered by wind, sun, water, and other sources that are naturally replenished. Therefore, the supply is unlimited.
When it comes to cryptocurrencies and, specifically, the process of mining coins or tokens, renewable energy is perceived as a possible solution to the massive energy consumption problem within the sector.
Blockchains are decentralized public ledgers that record transactions and assets. They rely on proof-of-work (PoW) and proof-of-stake (PoS) consensus protocols to enable mining which is essentially the process of verifying the legitimacy of each incoming transaction.
In order to verify a transaction and, in turn, receive a reward, miners must solve complex mathematical puzzles. There are specialized computers that facilitate this process.
Millions of miners are at work at this very moment for cryptocurrencies like Bitcoin, Ethereum, and many others. Sustainability enthusiasts are concerned about the impact this kind of energy use will bring.
It’s in the miner’s best interest to maintain low mining costs, therefore, they search for the cheapest options. Unsurprisingly, as the number of cryptocurrency miners grows, so does the consumption of energy. Especially, the kind of energy that is not sustainable or renewable and the kind of energy that leaves a significant footprint within our environment.
This is why the call for renewable energy in the crypto sector is becoming louder and louder.
Carbon dioxide equivalent (CO2e) accounts for not only carbon dioxide (CO2) but also methane (CH4), nitrous oxide (N20), and other gases that directly affect climate change. Carbon dioxide equivalent is a great metric when comparing energy sources.
What does this have to do with renewable energy? 1kWh of electricity generated by natural gas like fossil fuel emits over a hundred times more carbon dioxide than the entire life cycle of a wind turbine. These numbers, without a doubt, put in perspective how much energy sources matter when it comes to maintaining environmental sustainability.
Bitcoin is one of the cryptocurrencies that’s receiving the most backlash regarding environmental concerns. Elon Musk, who initially endorsed Bitcoin, stopped Bitcoin purchases in 2021 for an unspecified period of time due to the growing concerns about the massive amounts of fossil fuels used for crypto mining.
However, the crypto sector is not blind to this movement. There are many various crypto projects that are making efforts to study renewable energy sources and mining energy recycling. An example of a sustainable cryptocurrency is SolarCoin (SLR) which is backed by solar power.
The benefits of renewable energy include the infinite potential for creating energy since the resources like wind, sun, and others can’t be exhausted. Additionally, it minimizes the environmental damage. Additionally, since renewable energy sources can’t be exhausted, they won’t experience sudden price fluctuations. Moreover, solar energy is becoming one of the cheapest energy resources of all time and has the potential to become a game-changer.
The entire crypto industry will have to face this problem sooner or later, and by joining the sustainable energy efforts now they can improve morale within the crypto community while also showing critics that an alternative sustainable solution is possible.