Algorand — a carbon neutral blockchain
One ambition with starting this blog was also to write about blockchain systems that can be called climate-friendly and energy efficient. For example, in my last post I wrote about SEEDS that is operating on the TLOS blockchain that, from a climate perspective, is better than the Bitcoin blockchain. After all, the whole Bitcoin network and system based on the Proof of Work (PoW) currently has more than 1 million miners, while TLOS based on Proof of Stake (PoS) has more than 20 validators.
In this post, I wanted to write about Algorand, a blockchain presenting itself as “the carbon-neutral blockchain”. Algorand’s was founded partly by Silvio Miceli in 2017, an MIT-affiliated computer scientist and promoter of decentralization in relation to climate change aspects as sustainability. Its cryptocurrency is called Algo while its blockchain system is called “Pure Proof of Stake” which can do around 11 000 transactions per second.
How is Algorand climate-friendly in practice? One method is by cooperating and partnering up with companies and communities as a carbon offset marketplace Climate Trade driven by ambitions regarding climate transformation and a green market economy. Algorand’s smart contract system results in an allocation of Algorand blockchain’s transaction fees used to purchase carbon credits at ClimateTrade.
Another example is Algorand supporting environmental actions such as contributing to planting trees around the world, thereby compensating for its energy usage. Last but not least Algorand is constantly improving its PPoS validator-driven system by analyzing its energy usage and finding new methods for internal operations. At the moment, Algorand is also aiming to make new projects and operations in Africa.
Regarding the ecosystem, Algorand has internal governance based on involving supporting members to participate in discussions, and decision — making. Algorand is also cooperating with different organizations in order to promote its blockchain. One example is FIFA, the international football federation.
Algorand’s blockchain is also used on the Marshall Islands. For more information, check the video link.
Thanks for reading.