The Crypto Carbon Ratings Institute recently conducted a study. It was commissioned by Ava Labs and covered six blockchain networks. Researchers looked into the Total Value Locked, TVL, for three blockchain networks.
Avalanche reported a TVL of $18,454, while Solana and Polkadot registered a TVL of $4,395 and $19.18, respectively. Polkadot has the lowest TVL, but it has maintained a steady trading rate of 2.41% in the past 24 hours. According to this DOT coin price prediction, the token’s investors have all the more reason to be optimistic.
Polkadot Leaves Lowest Level Of Carbon Footprint
Out of all the six blockchain networks studied by Lena KlaaBen, Ulrich Gallersdörfer, and Christian Stoll from the Crypto Carbon Ratings Institute along with recent Blockchain news, Polkadot made its safe spot at the top with the lowest carbon footprint.
Cardano registered the lowest energy per node, and Solana reported the lowest consumption of electricity per transaction.
The carbon footprint has been in the news for a long time, with Cryptocurrencies attracting more controversy.
Overall, Proof of Stake blockchain networks have registered consumption of less than 0.001% as compared to Proof of Work blockchain networks. Bitcoin, the top-notch platform that unofficially represents the entire Crypto ecosystem, has been compared in the report by researchers.
As per the report published, the energy consumption by Bitcoin is a matter of concern.
To put it simply, a Proof of Work requires the miners to solve a complex puzzle through computational power in order to secure the network.
Proof of Stake, on the other hand, eliminates the middle portion of solving the puzzle. It instead requires the validators to lock their funds till the time a proposal or a vote has been finalized on a new block.
Miners who are active on the Bitcoin network have even become a concern for the countries that host their mining activities.
Carbon emission has been a cause of worry around Cryptocurrencies. It has even attracted the attention of Elon Musk and Bank of America Corp researchers, to name a few.
Ethereum, a blockchain network that follows Bitcoin in terms of ranking, is therefore now shifting from Proof of Work to Proof of Stake. This is a model that everyone hopes will be followed by Bitcoin in the future.
The report published by the Crypto Carbon Ratings Institute emphasized that Proof of Stake blockchain networks could consider focusing on other factors as their carbon footprint was already the lowest.
These factors are functionality, decentralized network, and network throughput.
Bitcoin ranks at the top with Proof of Work, despite emitting higher carbon footprints. Other blockchain networks are already settled in this field. Assuming they focus more on other factors, one can safely assume that they will surpass Bitcoin soon.
This will regain the confidence of many people in Cryptocurrency, especially those who are staying away from it due to the environmental impacts that it has at the moment.