ANALYSIS, DEVELOPMENTS ON A WORLDWIDE SCALE, AND INTERACTIONS WITH CRYPTOCURRENCY ENERGY USAGE

Abstract

Blockchain technology and decentralised systems are the foundations upon which cryptocurrency has arisen as a game-changing financial technology. While the worldwide use of cryptocurrencies is accelerating, the enormous energy consumption that is connected with mining cryptocurrency has become a serious problem, which has sparked broad investigation and initiatives to lessen the impact that cryptocurrency mining has on the environment. The purpose of this abstract is to investigate the global trends in the utilisation of energy for bitcoin, as well as developing technologies that aim to improve energy efficiency and international partnerships that are tackling this topic. In this paper, the processes that are responsible for energy-intensive proof-of-work (PoW) mining methods are investigated, and their carbon impact is highlighted. This is especially important in places that are dependent on non-renewable energy sources. Several recent advances, such the shift to proof-of-stake (PoS) and hybrid consensus processes, are being assessed to see whether or not they have the ability to minimise the amount of energy that is required. Additionally, the research investigates efforts that have been undertaken by both public and commercial organisations. These initiatives include the incorporation of renewable energy into mining operations, regulatory frameworks, and blockchain projects that are particularly focused on sustainability. Finally, the research investigates the ways in which the energy consumption of cryptocurrencies interacts with global efforts to address climate change. Particular attention is paid to the role that international agreements, carbon credit systems, and technical advancements play in relation to these interactions. In order to have a better grasp of the intricate interactions that exist between the evolution of cryptocurrencies and sustainable energy practices, this abstract serves as a prerequisite.