PayPal’s Blockchain Research Group in collaboration with Energy Web and DMG Blockchain Solutions is proposing a novel approach to address the environmental concerns surrounding Bitcoin mining. The research uses the power of cryptocurrency’s core economic principles to incentivize miners towards sustainable practices. Bitcoin’s robust security relies on its Proof-of-Work (PoW) consensus mechanism, but this process […]
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- Paypal research proposes economic incentives for sustainable Bitcoin mining.
- “Green miners” using clean energy get priority for certain transactions.
- Locked rewards in transactions incentivize miners to go green.
PayPal’s Blockchain Research Group in collaboration with Energy Web and DMG Blockchain Solutions is proposing a novel approach to address the environmental concerns surrounding Bitcoin mining. The research uses the power of cryptocurrency’s core economic principles to incentivize miners towards sustainable practices.
Bitcoin’s robust security relies on its Proof-of-Work (PoW) consensus mechanism, but this process comes at a significant cost – immense energy consumption. This new research proposes a system that integrates seamlessly within the existing PoW structure, promoting a shift towards clean energy usage by miners.
The system identifies miners utilizing sustainable energy sources as “green miners.” These miners are assigned unique public keys, referred to as “green keys,” which act as identifiers within the network.
Transactions with lower fees are then routed towards these green miners. However, a key element differentiates these tran…
The post PayPal Backs Crypto Solution for Greener Bitcoin Mining appeared first on Coin Edition.
