GreenBTC Club: A Public Good for A Sustainable Bitcoin Ecosystem
In the early days of 2009, amidst the aftermath of the global financial crisis, the world lingered in the depths of winter. Beneath the night sky, with a cutting cold wind and scattered households, a momentous spark took form on a computer in Helsinki. On January 3, 2009, following the principles outlined in his revolutionary paper titled “Bitcoin: A Peer-to-Peer Electronic Cash System,” Mr. Satoshi Nakamoto forged Bitcoin’s Genesis Block. Subsequently, a cryptocurrency system emerged, decentralized, permissionless, and emancipated from any external control. Today, this forward-thinking system, just as Mr. Nakamoto envisioned, has been operating smoothly for almost fifteen years without any centralized control.
In the last fifteen years, Bitcoin has evolved into a cornerstone of the cryptocurrency realm, garnering trust and backing from the community. However, this ascent has not been devoid of skepticism and critique. Chief among the concerns is Bitcoin mining’s substantial energy usage, tantamount to that of multiple medium-sized countries. This has triggered considerable environmental pressure due to carbon emissions, sparking ongoing debates. While discussions persist over whether the energy consumption of Bitcoin mining is justified when compared to the energy expended by traditional global banking systems in upkeeping their ledgers and transaction systems, the commitment of the Bitcoin community to embrace social responsibility has remained unwavering.
Reportedly, more than 70% of Bitcoin miners have been utilizing renewable energy to power their mining rigs in recent years. Clean energy now constitutes over 60% of the total energy consumption in Bitcoin mining. While this effort is commendable, it doesn’t stop there. Despite the significant use of clean energy, achieving zero emissions remains a distant goal. Historical Bitcoin mining energy consumption has resulted in notable carbon emissions. Arkreen is proud to be part of these initiatives, contributing as a community member to seek carbon neutrality for Bitcoin’s historical energy consumption. This involvement also fosters greater understanding and willingness among institutions and individuals with ESG goals to hold more environmentally friendly Bitcoin assets, further supporting the increasing societal value of Bitcoin.
Arkreen, a well-known Web3 global renewable energy data network, has advanced its initiatives. After unveiling the GreenBTC Club application at the Web3 Festival in Hong Kong in April 2023 and greening a Bitcoin block with a height of 779089 through renewable energy certificates (RECs), the application has now been enhanced. It enables community-wide support for the greening of all Bitcoin blocks, establishing an inclusive voluntary carbon offset platform for everyone to participate in.
Arkreen utilizes its network of “Green Miners,” a collection of renewable energy data-collecting IoT devices, to securely record the energy data of each connected green energy generation resource (such as solar photovoltaic power facilities) onto the blockchain. Similar to traditional REC registration entities like The International REC Standard Foundation (I-REC), which issues one REC for every 1 MWh of renewable energy generation, Arkreen issues Arkreen Renewable Energy Certificates (AREC) based on renewable energy data. These certificates outline specific green generation details, with each AREC minted as an NFT on the blockchain. Beyond this, Arkreen also facilitates the redemption and tokenization of traditional RECs from entities like I-REC. This process transforms them into equivalent ARECs, seamlessly integrating traditional RECs into blockchain-based inclusive climate actions.
ARECs can be directly used to offset an equivalent amount of carbon emissions from thermal-electricity consumption. However, as a supply side of REC, each AREC is tied to a specific location and quantity of energy generation, which may not always align with the location and quantity of electricity consumption on the demand side. In the case of Bitcoin, there’s an interesting observation. Bitcoin mining rigs are spread globally, with thousands of rigs simultaneously consuming electricity for mining and achieving consensus. Thus, it’s necessary to offset the carbon emissions resulting from global Bitcoin mining.
Arkreen supports the further conversion of ARECs into equivalent but fungible ERC-20 Tokens known as ART (Arkreen Renewable-energy Token). By burning ART, it becomes possible to flexibly offset carbon emissions from globally indiscriminate electricity consumption, precisely meeting the requirements for greening the global Bitcoin network.
The emergence of the GreenBTC Club application is built on the offsetting capabilities provided by ART, issued by Arkreen from green energy generation data (or traditional green certificates bridged into the system). Utilizing authoritative data from Cambridge Bitcoin Electricity Consumption Index, GreenBTC Club calculates the electricity consumption associated with mining certain Bitcoin blocks. Individuals who voluntarily support the greening of Bitcoin have the option to choose one or more Bitcoin blocks for greening. Users already connected to the Arkreen Network can employ ART based on their own green energy generation data to green a Bitcoin block. Alternatively, those not yet connected to Arkreen or lacking sufficient ART for greening a block can pay a reasonable fee and authorize GreenBTC Club to green a designated block on their behalf.
Certainly, greening efforts may not directly transform into a carbon sink for emissions from historical mining, but they play a role in promoting the sustainable growth of renewable energy and increasing its share in the overall energy landscape for the future. By garnering broad and meaningful community support for greening through effective actions, Bitcoin is poised to transform into a thriving ecological haven. Every contributor, regardless of the scale of their involvement, becomes a responsible member of the community as well as our society. The GreenBTC Club will memorialize each participant’s greening endeavors by creating a Soulbound Token on the blockchain as a lasting record. This not only serves as a testament to the Bitcoin carbon offset progress but also signifies the impact of each participant’s climate action.
Human life is inherently finite. When reflecting on our journey, what could be more gratifying than dedicating efforts to the pursuit of shared human happiness? What could be more fulfilling than leaving an enduring mark of a lifetime’s dedication to the blockchain? In sincere acknowledgment, GreenBTC Club has thoughtfully curated an NFT mystery box for each greened block, presenting it as a token of appreciation to every contributor. Within the mystery box, one might discover a seed patiently awaiting sunlight and rain, ready to stretch, unfurl, and paint the landscape with vibrant green hues.
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