cryptocurrency

Latest White House Report Examining Crypto Mining Concerns

  • It revealed conflicting results about the association between cryptography and the environment.
  • The department advised that the administration may prohibit proof of work.

Distributed ledger technology (DLT) and global warming have been the subject of a new report from the White House Office of Science and Technology Policy (OSTP).

The agency’s research has revealed conflicting results about the link between cryptography and the environment. While it is true that mining may improve grid reliability and spur the development of renewable energy, it also has the potential to increase “environmental justice issues” by contributing to greenhouse gas emissions and other harmful emissions.

Proof of work on target

Therefore management has advised that management may prohibit proof of work as a consensual method. Climate and Energy Implications for U.S. Crypto Assets is a report written in response to President Biden’s cryptocurrency executive order from March. In order to strengthen the regulation of the responsible sector, the president has instructed more than 20 administrative officials and heads of agencies to submit study reports and suggestions on various matters related to cryptography.

In particular, he claimed that Bitcoin and other blockchains based on a proof of work The consensus (PoW) method uses a “significant amount” of energy and adds to the local problems of air, water and noise pollution. Bitcoin and other high-volume POW networks are responsible for about 0.3% of annual global greenhouse gas emissions.

The report concludes that federal government intervention is necessary. This is in order to promote the widespread use and ethical growth of digital assets. Federal, state, and industry partners are needed to work together. This is in order to set environmental performance standards for the creation, use and maintenance of crypto-asset technology.

Incentives have been proposed to upgrade the Bitcoin network to a Proof of Stake (POS) consensus method. This was in the past before CFTC President Rustin Benham. Moreover, Ripple co-founder Chris Larsen donated $5 million to a transition fund in March.

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