PayPal’s innovative suggestion to make Bitcoin mining more ecologically friendly is upending the industry. PayPal’s Blockchain Research Group is launching a novel proposal called “cryptocurrencyeconomic incentives” in collaboration with Energy Web and DMG Blockchain Solutions.
Special “green keys” will be awarded to miners that employ sustainable energy. These keys will provide them an advantage when processing Bitcoin transactions because they are linked to their public keys. with additional locked Bitcoin reward and reduced costs attached. The drawback is that this incentive may only be claimed by green miners.
As a result, miners will have strong motivation to convert to low-carbon energy sources. PayPal hopes that this action will spur creativity.
The good news is that PayPal BRG and renowned Bitcoin miner DMG Blockchain Solutions Inc. have successfully tested this creative method.
The suggested method will make use of Energy Web’s “Green Proofs for Bitcoin” platform, which will enable miners to become certified according to how much clean energy they use and how much of an impact they have on the grid.
In order to see how effectively they functioned under various on-chain transaction volumes, they sent out several low-fee transactions during the test.
Essentially, this method benefits all parties involved by promoting ecologically sustainable mining techniques and improving transaction efficiency.
The results were intriguing: depending on the volume, certain transactions took a long time for the network to confirm, or it dropped them altogether. This raised the likelihood that these transactions would be discovered by green miners.
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