PayPal is promoting incentives for Bitcoin miners who take steps to reduce the environmental impact of their operations.
The PayPal Blockchain Research Group has partnered with the nonprofit EnergyWeb to develop a clean energy verification platform to monitor and reward less energy-intensive Bitcoin mining operations, PayPal blogged Monday. It was revealed through According to critics, the development of this solution comes as Bitcoin power generation places an enormous burden on America’s local power grids and taxpayers.
Bitcoin mining is a process in which people called “miners” solve cryptographic puzzles to create new blocks of transactions on the cryptocurrency blockchain, with the fastest miners earning bitcoins for their work. To solve these puzzles quickly, miners use large, energy-hungry computers.
PayPal’s proposed solution distributes Bitcoin to “green” Bitcoin miners, or individuals who use low-carbon energy sources for their mining operations. According to the National Oceanic Atmospheric Administration, using low-carbon mining methods limits carbon emissions and slows global warming.
Critics have been trying to limit Bitcoin mining, arguing that it causes air, water, and noise pollution, among other environmental problems. The process consumes about 127 terawatt hours (TWh) per year, more than the energy used in Argentina, according to the Rocky Mountain Institute, a global energy nonprofit.
Meanwhile, a New York Times analysis found that Bitcoin miners use about seven times the energy that Google uses for its annual global operations.
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About the author
Elizabeth Napolitano is a data reporter covering business and technology news with a focus on cryptocurrency. Before she joined The Block, Elizabeth reported on BigTech, AI, cryptocurrency, and video games for CBS Moneywatch. As a CoinDesk reporter, she covered DeFi, NFTs, and US courts. She received a master’s degree in journalism from CUNY. Follow her on X: @LizKNapolitano