How this mining pool strives to make Bitcoin greener

Bitcoin (BTC) miners use enormous amounts of energy to secure the network and process transactions. While the network offers many benefits, such as banking the unbanked, Bitcoin’s energy consumption is a controversial topic for critics. However, new solutions are emerging to reduce the environmental impact of Bitcoin mining.

The Cambridge Center for Alternative Finance estimates that the Bitcoin network currently consumes approximately 109.34 terawatt-hours (TWh) per year. Bitcoin miners use this energy to generate hash keys. When they guess the correct key, they receive BTC as a reward for their contribution to securing the network.

Cambridge Center for Alternative Finance

Today’s electricity demand is at a record high, and there is a new influx of miners. However, many miners still rely on fossil fuels, contributing to the network’s reliance on dirty energy sources.

Environmental concerns

Most of the world is pursuing a green transition, moving away from fossil fuels as much as possible. With Bitcoin relying on its proof-of-work (PoW) protocol, the network has been targeted by critics such as Greenpeace, as it is not in line with the organization’s mission to make the world’s industries more sustainable. Additionally, Bitcoin’s reputation is at stake, with governments mulling strict regulations on the mining industry and brands like Tesla dropping BTC as a payment method.

In other words, this step for sustainability is also relevant to the Bitcoin mining community. A transition to sustainable energy sources seems like a logical step to take, but it is not the easiest. In many countries, fossil fuels are simply the cheapest option, making them the first choice for miners.

Currently, there are many different initiatives pushing Bitcoin in a greener direction. For example, miners can minimize methane’s environmental impact by converting flared methane and vented landfill gases into electricity. In addition, smaller miners can now also contribute to the green effort by joining mining pools such as the PEGA Pool.

Accelerating Bitcoin’s Green Future

PEGA Pool, a platform based in the UK, is one of the newest mining pools in the industry. Of course, mining in a network, teaming up with other miners and earning BTC together is nothing new. However, PEGA Pool offers miners a way to make their operations more sustainable.

There are several ways in which this mining pool makes the work of participating miners more sustainable. First, miners using sustainable energy resources receive a 50% reduction in pool fees, giving clean energy sources an advantage over other participants in the PEGA mining pool.

Second, miners using “dirtier” energy sources are also welcome to join. However, PEGA Pool reserves a portion of the fees these miners pay to compensate for their environmental impact. More specifically, the project uses the fees to plant new trees, which capture the carbon these miners emit while mining Bitcoin.

PEGA Pool may be a relatively new platform, but its green mission has already attracted many miners. According to blockchain explorer BTC.com, the pool already ranks among the largest mining pools in the industry, taking the 11th place on the list. It currently produces a hash rate of 2875.62 peta-hashes per second, close behind Poolin. The pool has already mined 771 Bitcoins by mining 121 blocks, all with minimal environmental impact.

Green initiatives like PEGA Pool could have a positive impact on the future of Bitcoin, although it is unlikely that Bitcoin will join Ethereum in moving to a proof-of-stake (PoS) protocol. However, mining can become a more sustainable industry by focusing on renewable energy. In turn, this could increase the demand for renewable energy, possibly benefiting more than just the miners. Miners looking to green their operations can find more information about PEGA Pool on their official website.