The Environmental Impact: Cryptocurrency Mining vs. XDPoS Consensus

Proof-of-Work

Proof-of-Work or PoW is an algorithm that a decentralized network uses to settle transactions on a blockchain network. Cryptocurrencies such as Bitcoin and Ether employ the PoW consensus algorithm to create new coins and also distribute the coins across the network.

XinFin’s XDPoS Protocol Solves the Possible Global Warming Problem Due to PoW Based Bitcoin & Ethereum Mining.

How XDPoS Solves the Energy Problem of Cryptocurrencies?

To solve the energy challenge presented by traditional cryptocurrencies using PoW consensus algorithm, blockchain pioneers developed the Delegated Proof-of-Stake (DPoS) mechanism. The DPoS is a variation of the Proof-of-Stake consensus and is touted as a more energy and time-efficient alternative to other consensus protocols.

https://xinfin.org/xinfin-consensus

Parting Thoughts

If we are looking for a sustainable technology solution for both decentralized networks and a new form of an economic model, it is fundamental that they are energy efficient. And as we saw above, PoW coins are far away from being a fit. XDPoS, on the other hand, solves the problem by reducing energy consumption by thousands of times. It can be said that coins that rely on such sustainable consensus algorithms will be the future of the crypto economy and a decentralized future.

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