Out of environmental concerns, Tesla will stop all bitcoin transactions and will study more energy-efficient cryptocurrencies.
The original title “What kind of “green” cryptocurrency might Tesla add for payment? 》
Written by: BRIAN QUARMBY
On May 13, Elon Musk revealed that until Bitcoin mining becomes more environmentally friendly, Tesla will no longer accept any Bitcoin payments, which has had an impact on the entire cryptocurrency market.
Musk pointed out that while Tesla is waiting for Bitcoin to switch to renewable energy, the company will pay attention to “other cryptocurrencies,” which consume less than 1% of Bitcoin’s energy per transaction.
“Tesla and Bitcoin”
–Elon Musk (@elonmusk) May 12, 2021
This tweet has plunged many cryptocurrency communities into fanatical speculation about which cryptocurrencies Tesla might explore.
The social influencer “The Cryptic Poet” told his 45,000 Twitter followers that he predicted that Tesla would “use ETH or XRP.” However, the user “Massimo” pointed out that if Tesla uses ETH in its current state (it Using a proof-of-work mechanism like Bitcoin), it is better to “continue to use BTC”.
My prediction: “Tesla will choose to use ETH or XRP.”
— The Cryptic Poet (@1CrypticPoet) May 12, 2021
According to the analysis of the TRG data center, it is estimated that the average electricity consumption of Bitcoin per transaction is about 700 kWh. According to Digiconomist’s data, although Bitcoin’s annual electricity consumption is equivalent to that of the Netherlands, its annual carbon footprint is closer to Singapore. This is probably because Bitcoin uses cheap renewable energy in a large part of its mining. (Note: The estimation of the power consumption of each transaction is controversial, so it is only used as a very rough comparison tool).
Ethereum and PoS
Each transaction on Ethereum is estimated to consume 62.56 kWh. The Ethereum network currently uses the same energy-inefficient consensus mechanism as Bitcoin-Proof-of-Work (PoW). According to Digiconomist estimates, the annual carbon footprint of the Ethereum network is comparable to that of Sudan.
However, these issues will be resolved as the network is about to transition to ETH 2.0, which will introduce Proof of Stake (PoS). According to Nimbus, PoS consensus estimates are 99% more energy efficient than PoW.
Earlier this month, Rocket Pool contributor Joe Clapis ran 10 Eth2 validators for 10 hours on the lawn in front of his house using a mobile power bank and a hard drive connected to the Raspberry Pi, which proved this.
But all proof-of-stake chains can be said to be 99% more efficient than Bitcoin, so Tesla can choose almost any one, from Solana to Cardano, and any in between.
Ripple
XRP may be Tesla’s recent choice (depending on the US Securities and Exchange Commission’s lawsuit), because all XRP tokens are pre-mined. According to data from the TRG data center, XRP transactions consume very little electricity, only 0.0079 Kilowatt hours. Ripple regularly publishes blog posts and announcements to promote how energy efficient it is compared to the proof-of-work blockchain.
Stellar
XLM also follows the XRP model because all its tokens are minted at the time of creation. The Stellar network also uses the Stellar Consensus Protocol (SCP) for transaction authentication. It is said that this requires less energy consumption than PoW and PoS.
Algorand
Algorand may be a competitor. Not only does it run on a pure proof-of-stake protocol, but the team announced on April 22 that its blockchain is fully carbon neutral. Algorand is also working with the Spanish fintech company ClimateTrade, which is establishing a carbon dioxide market to enable companies to track their emissions in pursuit of broad sustainability goals. The two companies will work together to fulfill a sustainable commitment to make the network carbon-negative.
Dogecoin
Elon Musk’s long-time favorite Dogecoin may become the dark horse in this game? In fact, this kind of meme currency is mining based on the Litecoin network that uses a proof-of-work mechanism. However, when Bitcoin mining uses the ultra-complex SHA-256 algorithm, while Dogecoin and Litecoin mining uses Scrypt, it is both energy-efficient and fast (although the security is greatly reduced). Interestingly, the TRG data center estimates that LTC consumes 18.522 kWh per transaction, while Dogecoin consumes only 0.12 kWh per transaction.
When Musk launched a poll on Twitter this week asking whether Tesla should start accepting Dogecoin payments, he may have been considering these estimates.
“Do you want Tesla to accept Dogecoin?”
— Elon Musk (@elonmusk) May 11, 2021
Source link: cointelegraphcn.com
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