GreenCoin: A Renewable Energy-Aware Cryptocurrency

Abstract

In this paper, we propose GreenCoin – an energy-efficient cryptocurrency system with mining protocols designed to favor locations with relatively higher availability of renewable energy. Traditionally, crypto coin mining involves solving complex mathematical problems by high-end computing devices consuming an enormous amount of electricity, thus adversely affecting net carbon emissions. To reduce cost and emissions, GreenCoin uses a modified proof of stake (PoS) consensus algorithm, which itself is more energy efficient compared to other state-of-the-art methods. Our modified PoS algorithm, called Green PoS (GPoS), allows GreenCoin to favor nodes (with reward and privilege) located in regions with higher availability of renewable energy. We present a detailed system architecture of GreenCoin and explain the operating method of GPoS. We also provide results from empirical studies demonstrating the renewable energy-aware approach of GreenCoin.