Tie-Up Addresses Rising Environmental Impact Of Cryptocurrencies
Amidst the rising concern of the impact of blockchain networks and cryptocurrencies on the ecosystem, more and more projects are looking for innovative ways to lower their overall carbon footprint.
To further the cause of a green crypto ecosystem, Cudo, the team behind the Cudos Network, a layer-1 blockchain and layer-2 computation and oracle network, will work closely with ClimateTrade, a fintech organization assisting companies with offseting CO2 emissions to reach their sustainability goals.
The decentralized compute network offered by Cudos is designed to power Web 3.0 while providing developers using other blockchains with seamless and direct access to green computing power. Compared to the existing PoW networks, Cudos is already doing its part in the green initiative using the PoS consensus model, making it one of the most eco-friendly blockchains.
Matt Hawkins (NASDAQ:HWKN), CEO & Founder, Cudo, remarks,
“Building a sustainable computing model sits at the very core of our company’s values. Choosing the right partner to help us offset our network’s carbon footprint warranted deep research and consideration. It was therefore imperative that the partner we selected, utilizes blockchain technology, offering transparency and traceability to where purchased carbon credits are being spent.”
“We strongly believe that ClimateTrade is that partner, and we’re extremely proud to meet our target of ensuring Cudos is carbon neutral, in readiness for the network launch this quarter,”
according to Hawkins.
With over 60,000 global nodes using cloud servers, unutilized PC environments, and renewable energy-powered mining farms, Cudos is setting an example for other upcoming initiatives. The platform understands its responsibility and is working continually to transform into a carbon-neutral blockchain. To that extent, it has also partnered with Algorand, another carbon-neutral blockchain that uses ClimateTrade for carbon offsetting.
An Energy-Efficient Network For Blockchain Sustainability
Considering the massive expansion, the rise of Bitcoin and other cryptocurrencies generates huge volumes of carbon emissions. According to a Statista report published in May, one Bitcoin transaction alone spends, on average, 1200.86 kWh. This figure far outstrips the 148.63 kWh spent on processing 100,000 Visa (NYSE:V) transactions.
Since Bitcoin and other blockchains use the PoW consensus model where miners use high-powered computers to solve complex math puzzles to allow transactions to go through, it has resulted in energy consumption of epic proportions. But Cudos, in partnership with ClimateTrade, aims to end such drastic power consumption and e-waste. The platform uses the PoS consensus model, which is highly energy-efficient as it doesn’t need miners to solve complex problems to earn rewards.
ClimateTrade, on the other hand, has a vivid history of helping some of the most prominent brands lower their carbon footprint. By blending transparency and traceability using blockchain, ClimateTrade hosts a marketplace where users can directly offset their carbon footprint. Users select the most appropriate carbon credits available from the market and earn the official certificate, providing validation for their efforts.
Francisco Benedito, CEO, ClimateTrade, comments,
“We are pleased to be the carbon neutral partner of Cudos. At the very heart of their mission is the need to address the throughput, scalability, and, most importantly, environmental issues associated with blockchains. We want to empower decentralised infrastructure in the new digital economy, and our job is to support the development and growth of its operations in a sustainable way.”
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Source: Cryptocurrency - investing.com
