Environmental Policies for Green Cryptocurrency Mining

Abstract

Cryptocurrencies have appeared as a decentralized virtual currency where all users can contribute to the system and special encryption technology is used. Technologies from which cryptocurrencies originate are also promising technologies. Cryptocurrency mining, one of these technologies, provides a consensus algorithm that ensures the processing and security of the unique ledger. However, this algorithm requires a large amount of processing power for proof of operation, resulting in high levels of electricity consumption. The heat generated by cryptocurrency mining and the carbon emission due to high electricity consumption from fossil fuels will harm national and global efforts on the environment. In this respect, it may be possible to introduce various solutions and suggestions, including government intervention and technological changes in cryptocurrency mining.