With the advent of cryptos, particularly Polkadot the main issue has been the electricity consumption. Even though models that use the Proof-of-Stake consensus mechanism (PoS), electricity consumption seems minimal because their transaction validation process is staking. However, the situation is different for models that use Proof-of-Work (PoW), such as Bitcoin.
Mining is an associated process that the PoW models use to validate network transactions. This process uses a lot of electricity because it relies on highly-computing equipment to solve cryptographic puzzles.
Due to the high energy use, several countries cracked down on cryptocurrency mining, including Bitcoin in 2021. It was consistent with arguments that such practices promote environmental pollution.
The Crypto Carbon Ratings Institute, (CCRI), was inspired by this concern about energy consumption to investigate the electricity consumption of some blockchains. CCRI examined networks such as Solana (Bitcoin, Ethereum and Polkadot) in their research.
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Based on CCRI’s research, Polkadot was ranked as the strongest competitor to Ethereum. This is because it consumes the most electricity compared to Ethereum, Solana or Bitcoin.
It is clear that Polkadot has a lower impact on environmental and climatic change and pollution than other networks. According to the CCRI rating, Polkadot’s energy consumption is 6.6 times the annual value of electricity used by an average U.S. family.
A blockchain’s electricity consumption stands as a high determinant factor of its capital inflow from institutional investors. This formed Tesla’s 2021 move against Bitcoin as the electric car company suspended BTC as one of its payment options. The car giant cited BTC mining’s environmental impact as totally unacceptable.
Bitcoin has the lowest energy consumption of all networks that were involved in the study. The next in line is Ethereum, Solana and Cardano as well as Algorand (Avalanche), Tezos, and Cardano.
Polkadot Announces Pioneers Prize Program
In a move to encourage more innovation in its ecosystem, Polkadot announced the Pioneers Prize Program. The program comes with 20 million in rewards. There will be a variety of challenges, as well as some fixed prizes that are used to select winners. It’s part of the network’s plan to facilitate the growth of its ecosystem and Web3.
DOT’s outlook and the field have placed it on a bullish path for investors. The contributory influences are coming from Polkadot’s rating of low electricity consumption and its Pioneers Prize Program.
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From analysts’ evaluation of the Polkadot price trend, the protocol has rounded off both its retest and breakout. The majority of analysts believe the DOT has entered its buy zone.
Featured image taken from Pixabay. Chart from TradingView.com