As a researcher with a background in environmental science and blockchain technology, I find the Crypto Carbon Ratings Institute (CCRI) report on Cardano’s sustainability indicators to be an insightful contribution to the ongoing conversation around crypto-assets’ environmental impact.
As a researcher conducting an environmental assessment in line with the new Markets in Crypto-Asset (MiCA) regulations, I’m excited to share that the Crypto Carbon Ratings Institute (CCRI) has collaborated with the Cardano Foundation to evaluate the sustainability of the Cardano blockchain. This partnership allows for a comprehensive analysis of the network’s energy consumption, carbon emissions, waste production, and overall environmental impact. By working together, we aim to ensure that the Cardano blockchain complies with the European Securities and Markets Authority’s (ESMA) latest regulatory standards.
Cardano Is MiCA Ready
As a researcher studying blockchain technologies, I’ve come across Cardano’s unique infrastructure, which operates using the Proof of Stake (PoS) consensus algorithm called Ouroboros. Compared to traditional Proof of Work (PoW) networks, Cardano demonstrates a substantial decrease in energy consumption. Specifically, its annualized energy consumption amounts to 704.91 Megawatt-hours (MWh). To put this into context, conventional PoW networks such as Bitcoin consume significantly more energy, sometimes equivalent to the power output of small countries, according to recent reports.
The Carbon emissions for Cardano each year add up to approximately 250.73 metric tons of CO2 equivalent. With a carbon intensity of around 0.356 kilograms of CO2 per kilowatt-hour, this value illustrates the varied energy sources powering the network, representing both renewable and non-renewable energy usage.
As a researcher examining the Carbon Footprint Report for the Cardano network, I’ve discovered that our annual carbon emissions amount to 250.73 tons of CO2e. The electricity we consume has a carbon intensity of 356 grams CO2 per kilowatt-hour. This implies a small but significant effort is required to shift towards more renewable energy sources in order to reduce this figure further.
As a crypto investor involved in the Cardano community, I’m always keeping an eye on the latest regulatory developments. The MiCA framework, a new European Union regulation, has introduced a metric to measure electronic waste production, with Cardano generating around 8.26 tonnes annually. Shockingly, over half of this waste, equivalent to approximately 51.93%, goes unrecycled. This underscores the need for improved waste management practices within the lifecycle of Cardano’s hardware infrastructure.
The report explores how the network’s activities influence the use of natural resources, focusing on the essential elements needed to manufacture hardware components. These elements can be hard to obtain and extract comes with substantial environmental and financial costs. Furthermore, the network’s energy usage has a ripple effect on water consumption. This is particularly relevant in areas where renewable energy sources are scarce, and large quantities of water are used for cooling non-renewable power generation processes.
Beginning in June 2023, under the MiCA regulations, crypto-asset service providers are obligated to reveal extensive environmental impact information about their operations. The CCRI’s thorough report on Cardano not only complies with these regulations but paves the way for enhanced transparency when it comes to reporting sustainability metrics within the crypto sector.
At present, the Cardano network comprises of approximately 3,147 active nodes and has facilitated around 19.53 million transactions throughout the year. These figures shed light on the network’s underlying infrastructure and its environmental footprint. The energy consumption per node is estimated to be 25.576 watts, resulting in a total power usage of roughly 80.47 kW for the entire network. Consequently, each second processing one transaction requires an average of 0.192 watts.
From an analyst’s perspective, the CCRI report offers invaluable information regarding Cardano’s environmental footprint and its compatibility with worldwide sustainability objectives. Given the growing concern over the ecological implications of cryptocurrencies, evaluations like this will become indispensable for investors, regulatory bodies, and the general public to make well-informed decisions about the eco-friendliness of blockchain technologies.
At press time, ADA traded at $0.41.
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2024-07-02 19:42