Why ZeroCarbon Uses Smart Chain
The Ecological Friendly Choice
It’s no coincidence that the Smart Chain is the smarter solution for running Zero Carbon. Binance Smart Chain uses POS (proof of stake) to record transactions on the blockchain. As a result it uses a fraction of the amount of energy compared to counterparts like Bitcoin and Ethereum.
With NFTs, according to some estimates, the energy cost of minting an NFT on Ethereum is 332kWh (presuming full blocks), and the similar cost (presuming full blocks) on Smart Chain is 200mWh, or a factor of about 1.5 million.
We’ll give the bottom line first: reasonable estimates from the University of Cambridge place Bitcoin’s current annual energy consumption at 130TWh, a continuous draw of 15 gigawatts of electricity. If Bitcoin were a country, its annual energy consumption would place it between the mid-sized countries of Ukraine and Argentina. Some estimates of Ethereum’s annual energy consumption place it at around 26TWh, a draw of 3 gigawatts, comparable to Ecuador, a country of 17 million people.
By contrast, the energy used annually by validators of the Smart Chain network is in the range of 60MWh, a continuous draw of approximately 7 kilowatts.
These numbers differ by a factor of over two million, between six and seven orders of magnitude.
Proof of Work networks incentivize miners to produce blocks with a block reward funded via inflation, taxing all holders of the tokens to execute transactions on the network. So long as the tokens appreciate rapidly in value, that inflation-based tax is ignored by the holders; this may no longer be true if appreciation stops.
Unlike a Proof of Work-based consensus system like Ethereum or Bitcoin, a Proof of Stake network like Smart Chain does not depend on the cost of the electricity it burns to thwart potential attackers. Instead, it depends on direct economic incentives, through block rewards.
Proof of Stake networks gave no lower bound on the amount of energy it needs to expend. As computer technology improves, we can expect the power required to drop.
With NFTs, according to some estimates, the energy cost of minting an NFT on Ethereum is 332kWh (presuming full blocks), and the similar cost (presuming full blocks) on Smart Chain is 200mWh, or a factor of about 1.5 million.
We believe in the extraordinary use case of blockchain technology, and being ecological conscious, implementing on Smart Chain.
Thanks to our tokenomics we do not rely on mining, which typically uses a lot of energy. With the small amount of energy required for validating transactions, we compensate that by donating 2% of every transaction to organizations that offset carbon emissions. A future crypto that really is carbon neutral.
Let’s reward the planet together!
Zero Carbon is launching on SpaceToast Launchpad June 16, 18:00 UTC. You can participate here: https://www.toastfinance.com/launchpad
Website: https://www.carbon.charity/
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