Today, March 14, the Economic Commission of the European Parliament will vote on a new version of the regulatory proposal of the Markets in Crypto-Assets (MiCa) in whose text there is an amendment that requires cryptocurrencies to respect certain environmental sustainability standards, trying to counteracting mining and proof of work.
This could certainly lead to problems both for companies that work with this consensus mechanism for their networks and cryptocurrencies, and for all platforms such as wallets and exchanges that support them. According to the amendment, which had previously been deleted in the draft, crypto activities will also have to specify in their white papers what measures they implement to ensure the sustainability of their project in relation to mining and the operation of their company. Although the meaning of all this is rather dubious (the next step will be to abolish smartphones and the Internet?), Many companies have rightly been working for some time to ensure that alternative solutions are found.
Elrond’s contribution
In fact, among the blockchains that are trying to solve the environmental impact of the blockchain we find Elrondheaded by All Benjamin Mincu, which aims precisely to create a scalable network so as to be able to process many transactions per second at low prices and without using the Proof of Work, the consensus method used by Bitcoin and Ethereum. While Ethereum is working to switch to Proof of Stake con Eth 2.0. to become equally scalable, economical and reduce its environmental impact, for now it has not yet managed to take this step. For this reason, many alternative blockchains have been born over the years such as Cardano, Solana, Zilliqa and Elrond herself.
In light of the decisions that the European Parliament could soon take against the Proof of Work due to their impact on the climate, Elrond is committed to maintaining its carbon negative status by offsetting more than 25% carbon dioxide than its own grid produces. Each transaction, in fact, is compensated by the company by investing in the environment and in sustainable projects for the protection of biodiversity.
The latest news from Elrond
A few days ago, the blockchain company Elrond announced the acquisition of Capital Financial Services SA which operates under the brand Twispay, a financial institution authorized by the National Bank of Romania to provide online payment services and to issue electronic money. Twispay is a leading member of Visa and MasterCard and it is perhaps precisely for this reason that Elrond wanted to proceed with this agreement, in order to place itself in a privileged position to increase its functionality and at the same time succeeding in establishing itself as a connection point between traditional finance and the crypto world.