Bitcoin mining is a process by which transactions are verified and added to a public ledger, known as the blockchain. This system is secured by a process known as proof of work.
The mining process involves solving a cryptographic puzzle to add a block to the blockchain. Miners are rewarded with transaction fees and new bitcoins are minted for each block they solve.
Currently, Bitcoin mining remains largely an eco-friendly business. However, there are concerns about how the energy used in bitcoin mining could contribute to climate change.
Bitcoin mining can harm the environment
According to a recent study by the University of Waterloo, it is estimated that if all Bitcoin miners used renewable energy sources such as wind turbines or solar panels, there would be more than 80% reduction in the amount of electricity generated. carbon dioxide emissions.
In fact, if all miners switched their energy consumption from fossil fuels to renewable sources, we could completely eliminate CO2 emissions from these sectors by mid century.