PayPal’s Blockchain Research Group is working with Energy Web and DMG Blockchain Solutions to make a plan. This plan encourages Bitcoin miners to use clean energy sources (low-carbon energy sources) like wind or solar power starting from April 22, 2024.
Here’s how it works: Miners who use clean energy get special “green keys.” These keys are connected to their public keys, which are like their online addresses.
When people do Bitcoin transactions, they can choose to give a little extra money to miners who use clean energy. This means more profit for those miners.
To make sure only green miners get this extra money, it’s locked in a special digital wallet. Only green miners can open it.
This plan aims to make mining Bitcoin better for the environment. Using clean energy means fewer harmful gases in the air, which helps slow down global warming.
To make sure miners really use clean energy, they need certification. Energy Web’s “Green Proofs for Bitcoin” platform helps with this. Miners can sign up and show they use clean energy.
PayPal hopes this plan will make Bitcoin mining fairer and more eco-friendly. But some people worry about the huge amount of energy Bitcoin mining uses. They say it puts a strain on local power systems and harms the environment.
According to reports, Bitcoin mining uses a lot of energy. It’s even more than what entire countries like Argentina use. And it’s seven times more than what Google uses globally each year.