The Forbes article says, noting that carbon offsetting could be a major trend. “For this very good reason, during 2022,we are likely to see a great deal of emphasis on attempts to ‘greenify’ blockchain.”
This issue can be addressed in many ways, including carbon offsetting, though many people believe that this is only bandaging a wound that shouldn’t have been caused in the first place.
Switching to more miniature energy-intensive blockchain models is another option, such as organizations that use “proof-of-stake” rather than “proof-of-work” methods to generate consensus. Ethereum, the second most well-known blockchain, will switch to a POS mechanism in 2022, considering the energy-related issues.
Blockchains can potentially use a lot of energy and create high levels of carbon emissions – this fact was behind Tesla CEO Elon Musk’s decision to temporarily stop accepting Bitcoin in payment for his cars earlier in 2021.
Cathy Wood, CEO of tech-focused hedge fund Ark Invest, has advocated for another path to a greener operating model. Rather than making the blockchain itself more energy-efficient, she assumes that rising energy demand will lead to more investments in renewable energy generation, which can further be used for operating blockchains.