The process of verifying cryptocurrency transactions requires huge computing power. And in order to generate this energy, you have to supply data centers and therefore generate a lot of electricity.
So, according to Benjamin Jones, a professor at the University of New Mexico, it takes at least 110 terawatt-hours, which is how much a country like Norway consumes in a year! The concern is that the energy currently being used is of fossil origin, which therefore implies carbon pollution.
One solution could be to use renewable energy sources (solar, wind, hydropower, etc.) or even use processes that require much less computing power. According to the management company Ethereum, the latter wants to implement a method that will reduce electricity consumption by 99%.
Thus, Benjamin Jones believes that it is possible to obtain a “clean” cryptocurrency that does not harm the environment. According to a study published in Nature Communications, the carbon footprint of cryptocurrencies will be about 130 million tons of CO2 in 2024, so it’s time to act.