The Great Green Initiative

The Great Green Initiative

Gary Corder

Gary Corder

MELD Ambassador

April 13, 2022

The Green Nature of Cardano

Proof-of-Stake (POS) is a solution to the Proof-of-Work (POW) model currently used in the Bitcoin and Ethereum protocols. Although POS uses much less energy than its counterpart, they both aim to serve some of the same uses. They verify new transactions and add them to the blockchain, while also functioning to create tokens. Because Bitcoin was the first cryptocurrency, the energy usage of its protocol was not thought about decades into the future. The Cardano system, as well as Eth2 (currently in the making), use POS to increase sustainability, decrease energy output, and ultimately create a greener economy. Many newer cryptocurrencies use the POS model because of the clean nature of staking, while Bitcoin is still stuck on mining. In terms of energy usage, Bitcoin consumes about 115 terawatt-hours of energy per year. Cardano, on average, only consumes .006 terawatt-hours per year, which is relatively negligible. Harmful effects of mass energy production include pollution, which can spur climate change around the world. 

The Cardano Foundation is an active partner with Save the Children, an international non-profit organization that aims to help struggling children. The initiative is currently aimed at East Africa and involves a payment gateway that allows the NPO to accept ADA-specific donations without a need for intermediates. The gateway helps save money and time by eliminating any annoying exchange fees or actions. Although this is not a new partnership, it was one of the largest and most meaningful blockchain partnerships ever. Hopefully in the future, more blockchain technology will partner with the NPO sector to help change lives while also taking steps forward to mass adoption in the cryptosphere. 

A pro to the POS model is the ease of the donation process. For example, MELD was able to use the $ADA rewards from an extra epoch after the end of the ISPO to plant an astronomical amount of trees. The process banked off of the people who participated in the MELD ISPO and either wanted to donate to the Veritree project, or simply forgot to unstake their ADA. Either way, 175,000 trees were planted by the ADA rewards generated in the five days after the ISPO ended, thanks to Veritree. Staking rewards are not possible in Bitcoin or Ethereum yet, as their means of blockchain verification involves an energy-expensive operation. The Cardano system as a whole recognizes and upholds the green initiative, while MELD will continue to encourage charitable donations and nature-savviness. 

The Green Nature of Cardano-based Projects 

Anything built on top of the Cardano blockchain’s staking infrastructure will thus use less energy when compared to those using POW protocols. The beauty of the cryptocurrency industry is the ability for one idea to move the industry forward as a whole. Anything that is built on Cardano will reap the cleaner energy usage for on-chain validation and smart contract interactions because of Cardano’s POS mechanism. The validation of staking MELD and the use of future MELD products like the Genius Loan for example, rely on the base protocol which is inherently more energy efficient. MELD now offers staking rewards for $MELD locked within a pool for 6 month or 12 month periods. MELD is currently sold on many CEXs and DEXs for those looking to buy, stake, and HODL! With more than half a million in $MELD already staked, there is no limit to what the protocol can do with its users’ help. With MELD, you can choose a greener DeFi option than those built on any POW consensus. A greener protocol means higher sustainability, which can help shape the future of the crypto tech industry. Bitcoin and other POW protocols receive higher criticism for its energy usage and negative impact on the environment, while Cardano’s POS model is helping create a better future. Be a part of the change!

Conclusion

With a rise in cryptocurrency usage comes a rise in concern with the health of the environment. It will remain a principle that piques interest of communities that uphold the Earth as a valuable home. MELD, being released on Cardano’s blockchain tech, will remain a useful green option for those who are currently unbanked. It is time to spread the word about a protocol that offers environmentally stable yet valuable options across the globe for people left out of the banking system. Because other cryptocurrency options do not yet have POS models implemented or are still in infancy, Cardano, Cardano-based projects, and MELD are ahead of the growth curve. MELD aims to tap into the unbanked atmosphere, helping those who currently receive the highest-interest loaning options and worst credit scores.

Disclaimer

The opinions shared within this article are those solely of the MELD Ambassador. Note that the content within should not be considered financial, legal, or tax advice. Neither the author nor MELD Labs PTE Ltd. are financial, legal or tax advisors. None of this content should be used to make any form of financial, tax, or legal decisions. Do your own research and consult professionals as needed for official policies, restrictions, and requirements in your jurisdiction.

If you believe in the MELD vision, want to support this initiative, and want to help promote the future of finance then we want you to join the MELD Ambassador Program!

Tags
Cardano

MELD with us.