Bitcoin, the top cryptocurrency, has been facing criticism globally over its intense electricity consumption to keep up the system. Bitcoin blockchain works on a Proof-of-work consensus mechanism that requires computers to solve a extremely difficult mathematical puzzle to mine a Bitcoin.
Greenpeace, an independent global network, collaborated with Ripple co-founder and billion Chris Larsen to run a campaign to change the Bitcoin mining algorithm.
Along with Greenpeace and Chris Larsen, several climate activist groups collaborated to launch ‘Change the Code, Not the Climate’ campaign. This collaborative effort is aimed to convince the bitcoin community to change the base approach of the Bitcoin blockchain. As per a Bloomberg report, this initiative is designed to pressure the people who support its network to switch to eco-friendly ways to support the Bitcoin Blockchain. Currently, the Bitcoin transactions consume power equivalent to Sweden, and in the next five years, the power consumption will increase to the total energy use by Japan.
Incentivize miners and developers to alter the Bitcoin Code
‘Change the Code, not the Climate’ initiative run advertisements based on the damaging impact of Bitcoin mining on the environment in major publications over the next few months to raise awareness. According to the head of the campaign, Michael Brune, the campaign has already reached out and convinced key people and corporations who could help in this transition.
Moreover, as the shifting to a new consensus algorithm is a technologically complex process, this initiative will fund the miners and people involved in changing the code.
Ethereum: Leading the Change
Larsen assumes Bitcoin won’t continue to get support from investors until it switches to a less power-intensive process to process transactions. Giving an Example of Ethereum, he further notes, ‘Bitcoin is the outlier’.
Ethereum blockchain has announced to switch from Proof-of-work to Proof-of-stake in December 2020 after a massive uproar about its energy consumption. It has almost achieved the goal, and after ‘The Merge’ upgrade, which is expected to take place in Q2 2022, the total energy consumption by the Ethereum blockchain will be reduced by 99.99%.
Larsen Contribution to Changing Bitcoin Code
Larsen, who has contributed to many philanthropic causes, will contribute $5 million to support this campaign. Larsen, a billion with a net worth of more than $3.4 billion, assumes that a change in its code through a hard or soft fork is imperative to make the bitcoin sustainable.
The main obstacle to achieving the goal of this campaign is Bitcoin hardliners who do not want to touch Bitcoin’s original code, developed by a person with the pseudonym Satoshi Nakamoto. A significant part of the bitcoin community does not want any alteration in the base approach of Bitcoin, considering it could undermine the security protocol set by its creator.
Growing concern over Bitcoin Mining
The mining process requires massive computational power and hence a lot of energy. As per Nytimes estimate, the Bitcoin mining annual power consumption exceeds the total electricity use by Finland, a country inhabited by 5.5 million people. Furthermore, the total Bitcoin energy consumption is estimated to be 0.5% of worldwide consumption.
This cause has picked the pace since China’s crackdown on miners. Most of these miners shifted to the US and are currently attempting to use the renewal energy source.
Along with this campaign, there is a worldwide outcry for change in the Bitcoin code. Recently, the EU parliament has brought a draft bill to ban all POW based mining operations. Nevertheless, the probability of Bitcoin switching to a different consensus mechanism is pretty slim.
CoinFea Explainer
What is Bitcoin Mining?
Bitcoin mining is a process to validate the transactions in the Bitcoin Blockchain.
What is ‘Change the code, Note the Climate” campaign?
Change the code, not the Climate campaign, aims to convince the Bitcoin community to change its consensus mechanism by altering the code. This campaign will also run advertisements to raise awareness about the massive energy consumption by the Bitcoin network.