Electricity consumption has been one of the main concerns with the advent of cryptocurrencies, especially Polkadot. Although with models working with the Proof-of-Stake (PoS) consensus mechanism, this power consumption seems to be minimal since their transaction validation process is staking. But the story is not the same for those who use proof of work (PoW) like Bitcoin.
Mining is the associated process by which PoW models could validate their network transactions. However, the process consumes a lot of electricity as it uses highly computational equipment to solve cryptographic puzzles.
This high energy consumption has led to several crackdowns on crypto mining in different countries, especially Bitcoin, in 2021. This decision was in line with the argument that such practices facilitate environmental pollution. .
This concern over energy consumption prompted the Crypto Carbon Ratings Institute (CCRI) to study the rate of electricity consumption by certain blockchains. CCRI studied some networks like Solana, Bitcoin, Ethereum and Polkadot in its research.
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Based on the results of CCRI research, Ethereum’s strong competitor Polkadot has become the least electricity-consuming network compared to Ethereum, Solana, Bitcoin and other leading cryptocurrencies.
This indicates that Polkadot has minimal impact on environmental and climate change and pollution more than other networks. According to the CCRI’s assessment, Polkadot’s energy consumption is 6.6 times the annual value of electricity used by an average American family.
A blockchain’s electricity consumption is a key determinant of its capital inflow from institutional investors. This formed Tesla’s 2021 move against Bitcoin as the electric car company suspended BTC as one of its payment options. The automotive giant cited the environmental impact of BTC mining as completely unacceptable.
Of all the networks involved in the research, Bitcoin shows the highest power consumption. Next on the list are Ethereum, Solana, Cardano, Algorand, Avalanche, and Tezos.
Polkadot Announces Pioneer Awards Program
Polkadot has announcement its Pioneer Awards program in a recent move for more technological innovation within its ecosystem. This program contains 20 million dollars in rewards. The selection of the winners will be done through a series of challenges and fixed prizes. This is part of the network’s plan to facilitate the growth of its ecosystem and Web3.
The domain and general outlook for the network has placed DOT on an uptrend for investors. Contributing influences come from Polkadot’s low-electricity rating and its pioneer pricing program.
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Based on analysts’ assessment of the Polkadot price trend, the protocol has completed both its retest and its breakout. Most of them think the DOT has moved into its buy zone.
Featured image from Pixabay, chart from TradingView.com