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Environmental Impact Of Cryptocurrency – ReadWrite

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Mining Servers


As the world struggles with significant environmental changes due to industrial pollution, fossil fuels, and the primary reason for climate change, cryptocurrency has become in the discussion of climate change.

Bitcoin and many other cryptocurrencies are being produced by mining, and mining takes a lot of energy to create bitcoins or any other cryptocurrency. 

There has been a race for becoming crypto millionaires, and everybody wants to win in this race, creating a good amount of electronic waste than fat bank accounts.

Here’s how you can know how much energy is being consumed that can cost significant changes in climate change.

How Much Energy is too much?

The apparent reason for the environmental impact of Crypto on climate change is how they are being generated, and they are being caused by electricity to what we call digital coins.

As we know that many types of cryptocurrencies, including Bitcoin, hardly rely upon mining, and after Bitcoin’s release, it has become harder to mint new units through the mining process.

Inside a data center for cryptocurrency mining with endless racks of CPU and motherboards. Processing the exchange of digital coins.

So the total amount for bitcoin to mint is 21 million, and the more mint takes place, the more computational power needs to mint the left ones.

Bitcoin is the most expensive cryptocurrency (The price of one bitcoin is 42,000$, checked by this bitcoin calculator as of this writing). Since it tops the prices and other currencies, everyone wants to mine bitcoin to have some or a good portion in their pockets.

Therefore, it takes more computational power and electricity to mint new ones. The Cambridge Bitcoin Electricity Consumption Index states that bitcoin mining uses more electricity power globally than Netherlands and Pakistan.

The current miners with considerable income are Antminer S19j Pro, Antminer L7, Innosilicon A10 Pro, and others.

The environmental concerns come due to the production of carbon footprints by the power plants. A single bitcoin transaction takes 2,292.5 kilowatt-hours of Energy which is good enough to deliver electricity to a typical US household for over 78 days.

How come Environment concerns in Crypto?

Many countries use fossil fuels to generate electricity, resulting in carbon mixing in the atmosphere and worsening the climate. 

Approximately 35% of bitcoin operations occur in the USA alone, 

and the University of Cambridge has estimated that 60% of power is generated through fossil fuels.

There’s also an issue with the physical waste. As everybody is in the race to build more coins, miners use graphics cards, computers, and purpose-built ASIC rigs to mine bitcoin. They usually through away the old products and buy new ones.

Which produces physical waste, and therefore there has been a lot of electronic waste.

Why Crypto Uses So much Energy?

Why Does Crypto Use So Much Energy?
(Credit: Digiconomist)

Digital currencies consume so much electricity that no group of people or network could control them. Therefore, they are called decentralized currencies, which means they have no single control point.

Popular cryptocurrencies such as Bitcoin and Ethereum are based on the proof of work (PoW) system. It relies on users having to solve problems of varying difficulty to create new coins and add new blocks of data to the blockchain of a cryptocurrency.

The idea behind this system was developed to protect against cyberattacks in which a person creates numerous fake identities and then uses them to control most of the network.

Conclusion

Despite the benefits of cryptocurrency, the environmental impact of cryptocurrency mining is still a controversial issue. In addition to the fact that the industry consumes a large amount of energy, it is not only an inefficient form of money.

The digital infrastructure of the currency industry is also energy-intensive. The mining computer needs massive amounts of Energy. Further, data processing on these computers requires large quantities of Energy. Therefore, it is not surprising that the environmental impact of cryptocurrency mining is so high.

Nabeel Azam

Nabeel Azam

After earning my BS in Computer Science, I entered the IT world to explore my passion for SEO, Content Writing, and Web Development. Currently, I am working as a full-time Content writer and writing tech-related content at Solution Archive and on several reputed sites.

Politics

Fintech Kennek raises $12.5M seed round to digitize lending

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Google eyed for $2 billion Anthropic deal after major Amazon play


London-based fintech startup Kennek has raised $12.5 million in seed funding to expand its lending operating system.

According to an Oct. 10 tech.eu report, the round was led by HV Capital and included participation from Dutch Founders Fund, AlbionVC, FFVC, Plug & Play Ventures, and Syndicate One. Kennek offers software-as-a-service tools to help non-bank lenders streamline their operations using open banking, open finance, and payments.

The platform aims to automate time-consuming manual tasks and consolidate fragmented data to simplify lending. Xavier De Pauw, founder of Kennek said:

“Until kennek, lenders had to devote countless hours to menial operational tasks and deal with jumbled and hard-coded data – which makes every other part of lending a headache. As former lenders ourselves, we lived and breathed these frustrations, and built kennek to make them a thing of the past.”

The company said the latest funding round was oversubscribed and closed quickly despite the challenging fundraising environment. The new capital will be used to expand Kennek’s engineering team and strengthen its market position in the UK while exploring expansion into other European markets. Barbod Namini, Partner at lead investor HV Capital, commented on the investment:

“Kennek has developed an ambitious and genuinely unique proposition which we think can be the foundation of the entire alternative lending space. […] It is a complicated market and a solution that brings together all information and stakeholders onto a single platform is highly compelling for both lenders & the ecosystem as a whole.”

The fintech lending space has grown rapidly in recent years, but many lenders still rely on legacy systems and manual processes that limit efficiency and scalability. Kennek aims to leverage open banking and data integration to provide lenders with a more streamlined, automated lending experience.

The seed funding will allow the London-based startup to continue developing its platform and expanding its team to meet demand from non-bank lenders looking to digitize operations. Kennek’s focus on the UK and Europe also comes amid rising adoption of open banking and open finance in the regions.

Featured Image Credit: Photo from Kennek.io; Thank you!

Radek Zielinski

Radek Zielinski is an experienced technology and financial journalist with a passion for cybersecurity and futurology.

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Fortune 500’s race for generative AI breakthroughs

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Deanna Ritchie


As excitement around generative AI grows, Fortune 500 companies, including Goldman Sachs, are carefully examining the possible applications of this technology. A recent survey of U.S. executives indicated that 60% believe generative AI will substantially impact their businesses in the long term. However, they anticipate a one to two-year timeframe before implementing their initial solutions. This optimism stems from the potential of generative AI to revolutionize various aspects of businesses, from enhancing customer experiences to optimizing internal processes. In the short term, companies will likely focus on pilot projects and experimentation, gradually integrating generative AI into their operations as they witness its positive influence on efficiency and profitability.

Goldman Sachs’ Cautious Approach to Implementing Generative AI

In a recent interview, Goldman Sachs CIO Marco Argenti revealed that the firm has not yet implemented any generative AI use cases. Instead, the company focuses on experimentation and setting high standards before adopting the technology. Argenti recognized the desire for outcomes in areas like developer and operational efficiency but emphasized ensuring precision before putting experimental AI use cases into production.

According to Argenti, striking the right balance between driving innovation and maintaining accuracy is crucial for successfully integrating generative AI within the firm. Goldman Sachs intends to continue exploring this emerging technology’s potential benefits and applications while diligently assessing risks to ensure it meets the company’s stringent quality standards.

One possible application for Goldman Sachs is in software development, where the company has observed a 20-40% productivity increase during its trials. The goal is for 1,000 developers to utilize generative AI tools by year’s end. However, Argenti emphasized that a well-defined expectation of return on investment is necessary before fully integrating generative AI into production.

To achieve this, the company plans to implement a systematic and strategic approach to adopting generative AI, ensuring that it complements and enhances the skills of its developers. Additionally, Goldman Sachs intends to evaluate the long-term impact of generative AI on their software development processes and the overall quality of the applications being developed.

Goldman Sachs’ approach to AI implementation goes beyond merely executing models. The firm has created a platform encompassing technical, legal, and compliance assessments to filter out improper content and keep track of all interactions. This comprehensive system ensures seamless integration of artificial intelligence in operations while adhering to regulatory standards and maintaining client confidentiality. Moreover, the platform continuously improves and adapts its algorithms, allowing Goldman Sachs to stay at the forefront of technology and offer its clients the most efficient and secure services.

Featured Image Credit: Photo by Google DeepMind; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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UK seizes web3 opportunity simplifying crypto regulations

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Deanna Ritchie


As Web3 companies increasingly consider leaving the United States due to regulatory ambiguity, the United Kingdom must simplify its cryptocurrency regulations to attract these businesses. The conservative think tank Policy Exchange recently released a report detailing ten suggestions for improving Web3 regulation in the country. Among the recommendations are reducing liability for token holders in decentralized autonomous organizations (DAOs) and encouraging the Financial Conduct Authority (FCA) to adopt alternative Know Your Customer (KYC) methodologies, such as digital identities and blockchain analytics tools. These suggestions aim to position the UK as a hub for Web3 innovation and attract blockchain-based businesses looking for a more conducive regulatory environment.

Streamlining Cryptocurrency Regulations for Innovation

To make it easier for emerging Web3 companies to navigate existing legal frameworks and contribute to the UK’s digital economy growth, the government must streamline cryptocurrency regulations and adopt forward-looking approaches. By making the regulatory landscape clear and straightforward, the UK can create an environment that fosters innovation, growth, and competitiveness in the global fintech industry.

The Policy Exchange report also recommends not weakening self-hosted wallets or treating proof-of-stake (PoS) services as financial services. This approach aims to protect the fundamental principles of decentralization and user autonomy while strongly emphasizing security and regulatory compliance. By doing so, the UK can nurture an environment that encourages innovation and the continued growth of blockchain technology.

Despite recent strict measures by UK authorities, such as His Majesty’s Treasury and the FCA, toward the digital assets sector, the proposed changes in the Policy Exchange report strive to make the UK a more attractive location for Web3 enterprises. By adopting these suggestions, the UK can demonstrate its commitment to fostering innovation in the rapidly evolving blockchain and cryptocurrency industries while ensuring a robust and transparent regulatory environment.

The ongoing uncertainty surrounding cryptocurrency regulations in various countries has prompted Web3 companies to explore alternative jurisdictions with more precise legal frameworks. As the United States grapples with regulatory ambiguity, the United Kingdom can position itself as a hub for Web3 innovation by simplifying and streamlining its cryptocurrency regulations.

Featured Image Credit: Photo by Jonathan Borba; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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