Crypto.news - The growing popularity of cryptocurrencies has led to more people looking into how much energy they use and how they affect the environment. Lets delve into the environmental impact of well-known coins, looking at the technology behind them and the consequences they have on our planet.

Ethereum has cemented its status as a significant player in the blockchain landscape, facilitating the rise of smart contracts and decentralized applications (dApps). However, its influential position comes with an environmental cost. Ethereum recognized this issue and transitioned from the energy-hungry proof of work (PoW) to the greener proof of stake (PoS) system through the Ethereum Merge in September 2022.

According to Ethereum, its annualized electricity consumption plummeted from a staggering 2,565 MW to a mere 0.0026 TWh, making it virtually unrecognizable in energy consumption. The shift in consensus mechanism also led to a substantial reduction in carbon emissions, with the annual footprint dwindling to 870 tonnes of CO2e.

Putting Ethereums environmental impact into perspective

To contextualize Ethereums environmental footprint, its worth comparing its energy use to other high-consumption sectors. According to data on the Ethereum website, in 2023, Ethereums power use of 0.0026 TWh was dwarfed by energy-intensive industries such as data centers (200 TWh/yr) and gold mining (131 TWh/yr). Ethereums PoS system even consumed less energy than gaming in the US (34 TWh/yr) and popular services like Netflix (NASDAQ:NFLX) (0.451 TWh/yr) and PayPal (NASDAQ:PYPL) (0.26 TWh/yr).

Annualized estimates of other industries energy consumption | Data source: ethereum.org

Ethereums transition to PoS and the resulting decrease to a carbon footprint of 870 tonnes of CO2e annually demonstrate its commitment to sustainability. This pivotal move signals the potential for cryptocurrencies to adopt environmentally friendlier practices.

However, the transition to PoS isnt without complications. Ethereum Classic and EthereumPoW, which use the PoW system, continue to utilize energy-demanding ASIC devices and GPUs. The blockchains replication and data redundancy also generate higher energy costs compared to centralized alternatives, signaling the need for additional improvements.

Bitcoin, the pioneering cryptocurrency, is grappling with significant environmental challenges due to its vast annual electricity consumption of around 139.39 TWh, comparable to the power demands of entire countries. Bitcoins PoW system, responsible for its high energy use, contributed to a carbon footprint exceeding 65 million tonnes of CO2 in 2021.

Read market moving news with a personalized feed of stocks you care about.

Get The App

Bitcoin electricity consumption | Data source: ccaf.io

Bitcoin transactions are validated by users who mine bitcoins through the energy-consuming PoW process. The winning miner, who solves complex cryptographic puzzles, receives new Bitcoins as a reward. This process, primarily powered by fossil fuels, releases significant amounts of greenhouse gases, exacerbating global warming. As research published in 2022 revealed,

Like other cryptocurrencies, TRON, which uses a PoS system, has its own environmental considerations. TRONs energy use and carbon emissions are under-researched areas that warrant further study.However, preliminary assessments from the Crypto Carbon Ratings Institute report provide some insights.

As per the institutes report, the TRON PoS blockchain network hosts 367 nodes and processes approximately 22.317 billion transactions annually. Its estimated that TRONs total electricity consumption amounts to 162,867.85 kWh per year, contributing to total carbon emissions of approximately 69.47 tonnes of CO2e yearly. These calculations are based on data measured as of July 2022.

To put TRONs energy consumption into perspective, the report provides some familiar comparisons. According to the U.S. Energy Information Administration, the average American household consumes about 10,600 kWh of electricity annually. In contrast, the TRON network consumes approximately 15.4 times this amount.

Compared to Bitcoin, which operates on the energy-demanding proof-of-work (PoW) consensus mechanism, TRONs energy use is significantly lower, consuming less than 0.001% of Bitcoins annual electricity consumption of 83.87 TWh (as of July 1, 2022).

Dogecoin, similar to Bitcoin, operates on the energy-intensive PoW mechanism. As of July 2023, it consumes an estimated 2.25 TWh annually, comparable to the energy use of a country like Gabon, and its carbon footprint is on par with the emissions of the nation of Eswatini.

DOGE energy consumption chart | Data source: Digiconomist

In addition to carbon emissions, cryptocurrencies contribute significantly to electronic waste (e-waste), discarded electronic devices that pose environmental risks. Cryptocurrency mining necessitates powerful computing devices, which are frequently replaced as technology advances, leading to the disposal of older, ineffective models.

Cryptocurrency miners commonly upgrade their hardware to maintain profitability, leading to an ongoing cycle of electronic waste. Large-scale mining operations worsen the problem by disposing of outdated equipment en masse. This issue calls for responsible mining practices and effective recycling measures to combat the e-waste problem.

Addressing the e-waste challenge requires a proactive approach from the cryptocurrency community and industry stakeholders. Embracing responsible mining practices involves several key steps:

The growing electronic waste (e-waste) issue linked to cryptocurrency mining calls for decisive actions from industry stakeholders. Here are a few steps that can help:

Efficiency and durability: Miners could focus on hardware thats not only energy-efficient but also lasts longer. Fewer replacements mean less waste, promoting sustainability.

Recycle and repurpose: Instead of throwing away obsolete hardware, miners can recycle or repurpose them. This helps to extract valuable materials, reducing the demand for new raw materials and easing the environmental impact.

E-waste management: Cryptocurrency operations could adopt e-waste management programs, ensuring the right handling and recycling of old devices. This could be done through partnerships with reputable e-waste recycling organizations.

Supporting green projects: Backing cryptocurrencies associated with eco-friendly initiatives can steer the industry towards sustainability. It aligns financial interests with environmental responsibility.

Despite challenges, some cryptocurrencies are trying to make a difference: the so-called green cryptocurrencies. These digital assets use energy-efficient methods, put computing power to good use, and promote sustainability, all while furthering blockchain technology. This different approach aims to flip the script on energy-intensive mining.

For instance, FoldingCoin (FLDC) rewards participants for contributing their computational power to Folding@home (FAH), a project that simulates protein folding to understand diseases like cancer, Alzheimers, and viral infections.

Primecoin, another green cryptocurrency, finds prime number chains during its mining process, contributing to scientific and mathematical efforts, while also serving as an energy-efficient alternative to traditional cryptocurrencies.

As the cryptocurrency industry evolves, sustainability is now a key concern. While the path to eco-friendliness isnt straightforward, the transformation of Ethereum from a proof-of-work to a proof-of-stake system shows that change is achievable. Further, collaborations between the crypto community, regulators, and other stakeholders can harmonize technology with environmental responsibility.

The proposed Crypto-Asset Environmental Transparency Act of 2022 is one such initiative. It seeks to compel crypto-mining operations using over 5 megawatts of power to report their carbon dioxide emissions, increasing transparency and understanding of crypto-minings environmental impact.

The Act also proposes an interagency study to assess the environmental impacts of crypto mining in the US, including the number of mining operations, the effects of energy demand on emissions, local impacts on noise and water pollution from mining facilities, and the negotiation of demand response programs between mining centers and utilities.

The story of cryptocurrencies and their environmental effects is still being written. As it progresses, the pursuit of sustainability continues to shine as a guiding light, leading the way toward a more environmentally friendly and responsible future.

This article was originally published on Crypto.news

View original post here:
Cryptocurrency and environment: How digital coins affect the planet ... - Investing.com

Our firstarticlein this series looked at the way in which the Irish High Court adapted traditional legal remedies, such as injunctions and disclosure orders, to assist cryptocurrency holders who are seeking to recover stolen cryptocurrency.

This second article looks at how the Irish High Court has used the Norwich Pharmacal Order (NPO) to assist cryptocurrency holders seeking to recover stolen cryptocurrency. In the two cases, which are discussed below, the High Court granted NPOs to parties seeking information about the person(s) who owned or had access to certain accounts with a cryptocurrency exchange platform.

Norwich Pharmacal Order

A NPO is a type of court order which compels a respondent to disclose certain information to an applicant. It is an equitable remedy that is often sought against an innocent third party who possesses information about the identity of an anonymous wrongdoer. The order is available in Ireland, though it may be described as a disclosure or discovery order.

InParcel Connect Ltd & Ors v Twitter International Company[2020] IEHC 279, the Irish High Court noted that the premise of such an application, as set out inNorwich Pharmacal v Customs & Excise[1974] A.C. 133,is that:-

[E]ven if the defendant is not legally responsible for the wrongdoing it has nevertheless got so mixed up in the wrongdoing as to have facilitated the wrongdoing, it has come under a duty to assist the plaintiff by disclosing the identity of the wrongdoer.

There is an onus on the party seeking a NPO to make out a strong prima facie case of wrongful activity but certainty or a high degree of certainty is not required.

Stolen Cryptocurrency

InWilliams v Coinbase Europe Ltd (High Court Record No. 2021/348P), an application for a NPO was made to the Irish High Court by US businessman, Titus Williams, as part of efforts to trace approximately $1.8 million (1.5 million) in Bitcoin, which was stolen from his cryptocurrency wallet in February 2021.

InStanbury v Coinbase Europe Ltd (High Court Record No. 2022/714P), a similar application was made to the Irish court by Jack Stanbury. Mr. Stanbury claimed that 41.96 Bitcoin (currently worth around 1.2 million) was stolen from his digital wallet in August 2013, due to a hack of his user account on the now defunct Japanese Bitcoin exchange, MtGox.

Tracing the Bitcoin

Both plaintiffs employed the services of specialist cryptographic tracing firms, which enabled them to trace some of their stolen Bitcoin to accounts held by unknown persons with the Irish registered company, Coinbase Europe Limited (Coinbase).

While Coinbase did not object to the plaintiffs applications, its position was that, due to its obligations under contract and data protection laws, it could not provide the information sought unless it was ordered by a court to do so.

Norwich Pharmacal Orders were, therefore, sought in order to compel Coinbase to provide information that would assist in identifying the unknown account holders.

Orders granted

In each case, the Irish High Court ordered Coinbase to disclose to the plaintiffs within 5 days all information in its possession that would identify or assist in identifying the person(s) unknown who owned or had access to the relevant accounts. The information to be disclosed included, but was not limited to, the names, e-mail addresses, telephone numbers and IP addresses associated with all log-ins and log-outs relating to the accounts.

The court was satisfied that the plaintiffs in each case had made a strongprima faciecase of wrongdoing, and that there was no other means for the plaintiffs to establish the owners of the accounts, save for Coinbase disclosing the information.

The orders in both cases were granted subject to the plaintiffs undertakings to only use the information disclosed to seek redress in relation to the wrongdoing complained of.

Conclusion

NPOs have grown in popularity and frequency in Ireland over the past number of years with the growth of the internet and social media platforms. Their recent application to the world of cryptocurrencies is further evidence of the willingness of the Irish courts to adapt traditional remedies and apply them to new technologies.

While cryptocurrencies have brought key benefits for investors, these same benefits have also allowed for the prospect of fraud, misappropriation and theft within the crypto sphere. Although identifying the owner of a wallet is just one step in the recovery process, with retrieval of the assets being yet another hurdle, the above decisions further demonstrate that the Irish courts are willing to provide investors with legal tools to rely upon when their cryptocurrency has been stolen.

Go here to read the rest:
The Approach of the Irish Courts to Cryptocurrency and What Lies ... - Lexology

Countries around the world are still trying to figure out their rules and regulations for cryptocurrencies. While some have taken a hands-off approach, others are beginning to implement strict oversight of digital tokens.

One good example of increasing crypto scrutiny comes from the United Kingdom, where regulators are proposing tightening restrictions on how cryptocurrencies are promoted online, especially on social media.

Here's what the U.K. is doing to curb crypto promotions and why the U.S. isn't likely to follow suit.

The U.K.'s Financial Conduct Authority (FCA) recently announced that a revamp of its social media regulations is coming. The agency says the goal is to combat illegal and non-compliant financial promotions, and it honed in on cryptocurrency memes in its recent guidance.

The regulator said in a recent statement that crypto memes that have been circulated and shared online are subject to the FCA's rules. The firm gave an example of a seemingly innocuous meme that showed how easy it is to invest in crypto and said that these posts are subject to the FCA's rules on promoting investments.

Specifically, the FCA wants online financial influencers, sometimes called "finfluencers," to mention the risks of crypto investing and disclose that they're receiving compensation for the promotion.

Our top crypto play isn't a token - Heres why

Weve found one company thats positioned itself perfectly as a long-term picks-and-shovels solution for the broader crypto market Bitcoin, Dogecoin, and all the others. In fact, you've probably used this company's technology in the past few days, even if you've never had an account or even heard of the company before. That's how prevalent it's become.

Sign up today for Stock Advisor and get access to our exclusive report where you can get the full scoop on this company and its upside as a long-term investment. Learn more and get started today with a special new member discount.

Even for a meme post, not doing so could come with a fine or land an influencer in jail for up to two years.

Beginning this fall, the FCA will also ban incentives to invest in cryptocurrencies, implement rules for influencers about issuing warnings for risky investments, and enact a 24-hour "cooling" period that gives first-time investors a chance to consider their investment decision before acting on it.

The FCA also noted that even posting cryptocurrency memes on Reddit to hype a specific investment is subject to regulation. When all of these rules are added together, it could effectively eliminate some posting of crypto memes.

Right now, the U.S. federal government doesn't have anything in the works that compares to the level of crypto meme regulations the U.K. is pursuing.

But that doesn't mean more crypto regulations aren't on the way. Last year, President Joe Biden signed an executive order saying that the government would look more closely at the benefits and drawbacks of cryptocurrencies.

Among other things, the order directs the Treasury Department and other federal agencies to consider policy recommendations for cryptocurrencies that could be used to protect consumers and mitigate risks to the financial sector.

One way the U.S. federal government is taking steps to control cryptocurrency investment is through the Securities and Exchange Commission (SEC). The SEC oversees rules and regulations for securities (stocks, bonds, etc.) and has moved closer to overseeing cryptocurrency exchanges, where people buy and sell crypto assets.

The SEC has also said that major cryptocurrencies are unregistered securities and has cautioned consumers about investing in them.

While there hasn't been much talk of banning crypto memes, cryptocurrency exchanges, crypto companies, and investors will likely see increased U.S. regulation in the coming years.

The recent collapse of the FTX crypto exchange proved to many in the government that strict oversight of digital currencies is needed. Since then, the SEC has also filed charges against other crypto platforms.

The U.S. may not be on the path towards tracking your latest crypto meme posts on Reddit, but it's undoubtedly making inroads towards broader oversight of the crypto market. This means that investors who own crypto, influencers who promote it, or companies that create digital coins or exchanges should keep a close watch on any new rules.

There are hundreds of platforms around the world that are waiting to give you access to thousands of cryptocurrencies. Our experts have done the research to pick out the select few top crypto exchanges today.

To help you get started, we're sharing one of our expert's top picks for free -- simply click here to start your crypto journey today.

See more here:
The U.K. Could Ban Memes Promoting Cryptocurrency. Will the U.S. ... - The Motley Fool

The rise of cryptocurrencies has revolutionized the financial landscape, offering unprecedented opportunities for businesses and individuals alike. However, with the increasing adoption of digital assets, the need for a robust security infrastructure has become paramount.

As the decentralized nature of cryptocurrencies provides both advantages and challenges, businesses must be proactive in safeguarding their valuable assets from malicious actors and potential vulnerabilities. In this article, we will explore the significance of building a strong security infrastructure and delve into two key areas that demand particular attention: securing digital wallets and protecting against cyber threats.

Securing Digital Wallets

At the core of cryptocurrency operations lie digital wallets, which serve as the gateways to access and manage digital assets. Securing these wallets is crucial in protecting funds from theft and unauthorized access. Several strategies can be employed to enhance the security of digital wallets:

Multi-factor Authentication (MFA)

Incorporating Multi-Factor Authentication (MFA) enhances the security level of digital wallets. MFA adds an extra layer of security by requiring users to provide multiple forms of identification, such as a combination of a password, fingerprint, or a one-time PIN. As a result, the risk of unauthorized access is greatly minimized. This serves as a potent deterrent against potential hackers attempting to breach the wallet's security.

Cold Storage Solutions

Cold wallets refer to offline storage options, which offer higher security than online hot wallets. Storing the majority of cryptocurrency holdings in cold wallets ensures that even if online wallets are compromised, a significant portion of the assets remains protected from potential threats.

Regular Wallet Backups

It is essential to regularly back up wallet data and store it in secure locations. In the event of hardware failure or a security breach, having a recent backup ensures that funds can be easily recovered and minimizes the risk of permanent loss.

Security Updates and Patches

It is common for news media outlets like DailyCoin website to regularly issue security updates and patches to tackle recently identified vulnerabilities. It is essential for businesses to remain alert and diligently apply these updates to safeguard their wallets against the most recent threats.

Protecting Against Cyber Threats

Educating Employees

An informed and knowledgeable workforce serves as the primary shield for companies in the face ofcyber threats. Employees should be trained on best practices for identifying phishing attempts, social engineering, and other common attack vectors. By conducting regular cybersecurity workshops and providing updates on emerging threats, the risk of successful attacks can be significantly diminished.

Robust Network Security

For businesses operating in the cryptocurrency space, the implementation of robust network security measures is of utmost importance. This includes using firewalls, intrusion detection systems, and encryption protocols to safeguard sensitive data and prevent unauthorized access.

Penetration Testing

Regularly conducting penetration tests can help identify vulnerabilities in the company's systems before malicious actors exploit them. These tests involve simulated attacks by ethical hackers to evaluate the effectiveness of the existing security measures and identify areas for improvement.

Blockchain Security Audits

For businesses that develop their blockchain-based applications or smart contracts, conducting security audits is essential. These audits can help identify coding errors or vulnerabilities that could be exploited to compromise the integrity of the blockchain network.

Conclusion

As the world of cryptocurrencies continues to evolve, businesses must prioritize the establishment of a robust security infrastructure to safeguard their assets effectively. By securing digital wallets through multi-factor authentication, cold storage solutions, regular backups, and prompt security updates, businesses can mitigate the risk of unauthorized access and potential loss. Additionally, protecting against cyber threats necessitates educating employees, implementing strong network security measures, conducting penetration tests, and performing blockchain security audits.

While no security system is entirely impenetrable, a proactive and comprehensive approach to security can significantly enhance a business's resilience against potential threats. As the cryptocurrency industry matures, staying one step ahead of malicious actors becomes increasingly critical, ensuring businesses can thrive in this exciting and transformative financial landscape. By dedicating the necessary resources and attention to building a robust security infrastructure, businesses can confidently embrace the potential of cryptocurrencies while safeguarding their valuable assets.

Read the rest here:
The Robust Security Infrastructure: Safeguarding Business Assets in ... - Finextra