Recognizing Bitcoin’s energy consumption is completely unsustainable, a group of hackers created an eco-friendly iteration of the cryptocurrency known as PIVX. It offers the fundamentals of Bitcoin, but with a faster, cheaper and more efficient way to transact and earn using the environmentally friendly Proof of Stake (PoS) protocol. The PIVX network uses such little electricity, it could be completely powered by a single wind turbine.
Apparently, the only thing Bitcoin lovers hate more than government-backed currencies is the environment. The disruptive digital currency has brought tremendous innovation with how it transfers value securely, quickly and without the need for a third party, but not without other significant costs.
Bitcoin produces more Co2 in a year than one million transatlantic flights.
In more relatable terms, one single Bitcoin transaction uses enough power for 13 American homes for an entire week. According to Princeton computer scientist Arvind Narayanan’s testimony to the Senate Committee on Energy and Natural Resources, Bitcoin is now responsible for nearly one percent of global energy consumption.
The Inefficiency of Mining Bitcoin
This issue is connected to the algorithm used to “mine” Bitcoin transactions, known as Proof of Work, which requires a seemingly insatiable hunger for computer power that has led to wealthy miners setting up enormous facilities just to house more machines.
The solution is simple: change the way coins are mined.
The execution of that solution is far from simple, yet it’s already been done by a global group of hackers behind the cryptocurrency known as PIVX.
PIVX is an evolution of the Bitcoin code that embraces the best parts of the technology while making improvements in areas that could be better. One significant improvement is the move away from Bitcoin’s power-hungry “Proof of Work” algorithm to majorly reduce energy consumption.
Ethereum Founder Embraces Proof of Stake
PIVX uses an alternative method to “mine” coins known as Proof of Stake that even major players in the space such as Ethereum and EOS (a combined market cap of over $21.8 billion) are incorporating it into their blockchains. This is a move that Ethereum founder Vitalik Buterin believes will significantly reduce Ethereum’s carbon footprint noting blockchains sharding based on proof-of-stake is “thousands of times more efficient.”
Proof of Stake allows participation in the network without having costly mining equipment. An average PIVX holder can connect their wallet and PIVX holding to the network to earn staking rewards, all on a regular personal computer. The entire PIVX network, which has approximately the same number of nodes as the Bitcoin network, could be powered by a single wind turbine, making it not only more energy efficient but cost effective as well. Their Bitcoin mining counterparts require major equipment and pricey electricity bills that can reach into the millions for industrial mining operations.
A Protocol For All, Not Just Wealthy Miners
PIVX’s Proof of Stake protocol also allows for Masternode owners (10,000 PIV / Masternode) to vote on PIVX proposals. This decentralized style of governance helps to encourage sustainable solutions to the maintenance of the network with a diverse group of stakeholders … not just a few wealthy Bitcoin miners.
Cryptocurrency brings tremendous benefits to society as long as we focus on protocols with efficiency and sustainability in mind. Bitcoin mining in its current iteration just won’t cut it.
PIVX stands for Private – Instant – Verified – Transaction and is a community-centric cryptocurrency with a focus on decentralization, privacy and real-world use. PIVX is a DAO (Decentralized Autonomous Organization) with no full-time team, no headquarters and no executives. It is governed and run by the PIVX cryptocurrency community.
For more information: www.PIVX.org or visit our YouTube channel.
For media statements or interview requests for the PIVX team, contact Global PIVX Ambassador and PR Spokesperson Kelsey Cole – firstname.lastname@example.org.