For this year’s Earth Day, Algorand (ALGO) vowed to be the greenest blockchain in alliance with CO2 emissions transparency and traceability company, Climate Trade.
In December, Algorand and ClimateTrade partnered again, and thanks to the platform’s versatility and low transaction rates, ClimateTrade built its carbon offsetting technology on the top of Algorand. In the press release, Algorand also revealed its blockchain is now completely carbon neutral, setting the benchmark for sustainability in the digital assets market.
Sustainable Energy to Mark Earth Day
In the development of the carbon-negative network, both organizations intend to develop a sustainable oracle to note the carbon footprint of Algorand in the chain. Algorand will also use the Algorand Standard Asset to lock the corresponding carbon credit. Also, the green treasury keeps the locked amount.
Sustainability had been a significant subject of controversy in the cryptocurrency community. Algorand creators based the platform on sustainability since its launch. The network does not deploy the proof of work consensus to minimize computational power. Algorand claims, instead, that it is purely based on proof-of-stake.
Algorand and other protocols of proof-of-stake are trying to portray the greener side of technology in the blockchain by green energy. To solve the problem currently afflicted by miners’ high-energy consumption. Sunny King implemented a proof of stake (PoS) in 2012.
The concept of staking was introduced that would make the mechanism use less energy, be more usable, cheaper and more flexible, and make it possible for users to use it as an alternative method.
Critics continuously challenge bitcoin’s long-term sustainability by pointing out that mining assets consume a ton of power. A PoW mechanism, as in the case of Bitcoin, involves participating miners solving mathematically computer-intensive problems to be selected as validators of the next block. Miners get paid for each validated block in cryptocurrency units but the computers use up too much energy, are inefficient and expensive.
Algorand Platform’s Increased Adoption
Algorand reports that it witnesses increasing adoption as it shifts towards sustainability in the decentralized technology market. The platform’s network managed to hit 10 million accounts by 31 March 2021.
Lately, high gas fees on Ethereum have left stablecoin issuers and DeFi traders searching for suitable alternatives. Similarly, global central banks have begun to analyze which CBDC network to integrate with their digital currencies, and Algorand has made it on the shortlist of viable contenders.
The ease of staking on the network is another factor for Algorand’s continued development. With only keeping the tokens in the Algorand wallet, ALGO holders can quickly put their token in the network and receive 7.19 percent.
The rapid expansion of Algorand’s DeFi infrastructure, a growing list of collaborations and the opportunity for funding from the CBDCs demonstrate the solid fundamental principles of the project. Some of the notable organizations working with the platform are PlanetWatch and GlobalCarbon Holding.