A cryptocurrency platform has launched that relies heavily on renewable energy to run its data centers.
U.K.-based IO DeFi announced that hundreds of its data centers are now running on solar, wind, and hydro power. The platform allows users to invest in popular cryptocurrencies, such as Bitcoin, Ethereum, Ripple, Solana, and Dogecoin, and generate passive income.
The volatility of crypto investments is as well-documented as its reliance on dirty energy, so it's a welcome change of pace that more crypto operations are leaning on renewable energy.
A few select crypto operations in Kyrgyzstan, Zambia, and Bhutan have bucked the trend by using hydro power. Some coins, like Ethereum, have improved energy efficiency, requiring less power to process.
Meanwhile, British Columbia views crypto as a drain on the grid regardless of the energy source and has banned it altogether.
The flow of cryptocurrency relies on a wide network of computers to verify transactions. This eliminates the need for centralized banks to do such validations.
Alongside AI, the energy demands of data centers have soared, leading giants like Google and Microsoft to invest in nuclear power.
Regardless of sector, keeping energy demands low is vital to minimizing atmospheric pollution generated from burning gas and coal for grid power.
The pollution from these sources contributes directly to violent weather patterns such as floods, droughts, and storms, which, in turn, incur costs for housing, agriculture, and the environment.
Speculating on virtual assets like crypto may yield promising economic returns, but these opportunities may only be worth pursuing if the underlying foundations aren't masking environmental costs.
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It is the future of currency 😎 A United Nations study recommended a balanced approach to cryptocurrency when it comes to the environment.
"Our findings should not discourage the use of digital currencies," said Professor Kaveh Madani. "Instead, they should encourage us to invest in regulatory interventions and technological advancements that improve the efficiency of the global financial system without harming the environment."
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