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Green Miners: When PayPal Dreams of Greening Bitcoin!

Tue 23 Apr 2024 ▪ 3 min of reading ▪ by Mikaia A.
Mining

The argument that Bitcoin is harmful to the environment has been flourishing among crypto-skeptics, who do not miss an opportunity to cast aspersions on the entire system. Despite the efforts of enthusiasts to prove otherwise, the opposing camp remains rigid. In this context, PayPal has taken the initiative to establish a rewards system for “green miners.”

Bitcoin coin and miners in the jungle, PayPal logo

PayPal and “Green Miners”: An Ecological Revolution in the Crypto Universe

The online payment giant PayPal, which has recently ventured into the world of Web3 with projects including NFTs, blockchain, and cryptocurrencies, is not looking to back down. Once crypto technology adopted, it intends to leave its mark on this new universe, whether it is by revolutionizing cross-border transfers with the PayPal USD stablecoin or encouraging Bitcoin miners to opt for more environmentally-friendly practices.

PayPal’s Blockchain Research Group, hand in hand with Energy Web and DMG Blockchain Solutions, has unveiled a proposal to encourage Bitcoin miners to adopt environmentally responsible practices, according to a recent blog post.

The idea? To use “crypto-economic incentives” to encourage the use of low-carbon energy sources. “Green miners” would be awarded special “green keys,” linked to their public keys, and would benefit from reduced fees and additional BTC rewards for their transactions.

“Green miners will be incentivized to mine these transactions as they will be the only ones able to take advantage of the additional BTC reward ‘locked in’,” the company explained.

This initiative aims to stimulate innovation and open dialogue about Bitcoin’s role in the energy transition. With the help of the Energy Web’s “Green Proofs for Bitcoin” platform, the miners will be certified based on their ecological impact, paving the way for more environmentally-friendly crypto-mining.

Conclusive Tests for PayPal BRG and Green Miners

In a recent experiment conducted with DMG Blockchain Solutions Inc., PayPal BRG announced that it successfully tested its proposed solution. The goal? To broadcast several low-cost transactions to determine its effectiveness at different transaction volume levels on the chain.

According to the company’s observations, depending on the volume, some transactions could take a long time to be confirmed or would even be abandoned by the network. However, this solution would increase the success chances of green transactions, thereby offering green miners a better opportunity to recover them.

Although other approaches are possible, such as using private channels like the Lightning Network or smart contracts, they could involve compromises, including more complex implementation.

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Mikaia A. avatar
Mikaia A.

La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.