Nov 9, 2022
Green Projects on Dotsama.
Introduction
The days of blockchain adoption when the environmental costs of verifying transactions and mining blocks could be comfortably overlooked are long gone. Since recently the Web3 community is increasingly concerned about the environmental effects that blockchain networks produce. ESG (Environmental, Social, and Governance) standards are being analyzed and expected to be involved in blockchain teams’ vision, structure, and strategy. These elements frequently include a breakdown of energy use, carbon dioxide emissions, or e-waste generated.
Because of the heat-trapping properties of carbon dioxide, global surface temperatures have experienced substantial growth since the last century’s intensified industrial expansion. Reducing atmospheric carbon concentrations to acceptable levels is a difficult endeavor that is frequently hampered by a lack of transparency and liquidity. Recent technical advancements, however, are making it easier for both major organizations and individuals to engage in the process.
The growing concept of regenerative finance (ReFi) employs blockchain technology to combat climate change by utilizing carbon credits. Various crypto networks are creating the basis to lower the carbon footprint, and so does Polkadot.
The role of Consensus Mechanisms
A blockchain, as most Web3 users are aware, is a database that is maintained and shared across several computers that create a single network. To function correctly, everyone engaging with the blockchain must see the same data, which implies that every computer in the network must agree on each block in the chain and its overall status. Blockchain requires a consensus mechanism to ensure that such an agreement can be achieved.
There is a lot of discussion about these consensus mechanisms, mostly about how much energy they use or how efficient they are. This energy usage is frequently compared to analog databases and other existing technologies, but it is also frequently seen as inefficient and negative for environmental preservation. Proof-of-Work and Proof-of-Stake are the two most prevalent consensus mechanisms nowadays. Proof-of-Stake approach, on average, requires 99% less energy than Proof-of-Work, making it a “greener” option.
The Polkadot Proof-of-Stake solution employs a shared security concept, resulting in a more efficient consensus mechanism than the conventional PoS model. According to the research of Crypto Carbon Ratings Institute, Polkadot consumes much less energy than both PoW and PoS rivals.
Moonbeam as an example of efficiency
Moonbeam is a parachain that is built on Polkadot and uses the “Relay Chain’’ for shared security. In essence, this implies that blocks generated on Moonbeam’s layer one chain are sent to the Relay Chain for finalization: parachains are not in charge of the process. This results in a system where numerous layer ones run in parallel, generating blocks as needed to meet demand while efficiently utilizing a common security mechanism.
As a consequence, combination of Polkadot and Moonbeam is not only much more energy efficient, but because its synergistic environmental footprint is quite small, it is extremely feasible to go a step further and shift towards a carbon neutral network with the addition of carbon offsetting strategies such as carbon credits implementation.
Green initiatives on DotSama
Bitgreen & Sequester
Bitgreen is an application-specific parachain that aims to become a hub for decentralized digital sustainability and influence on the Polkadot and Kusama ecosystem. Sequester is a planned common good parachain that will organize a first-of-its-kind multichain initiative across Dotsama efforts to develop climate action.
Parachains will initially communicate with the Bitgreen and Sequester teams to define their expected involvement in the potential cooperation and share their sources of Scope 1 and Scope 2 emissions for analysis. Bitgreen can provide teams with a plan and procedure to follow. Sequester, in turn, will offer a set of tools that automate the process of accumulating transaction fees, swapping them for carbon-backed tokens, and retiring underlying carbon offsets that meet community requirements. The offset amount is decided by the chains and their active users, and the setup should take less than a day of development time. This concept also includes a pallet for donations to transfer a part of a network’s transaction fees or other allocated funds into a consolidated treasury, as well as proof-NFTs for demonstrating the commitment to environmental regeneration and reinvigoration.
Energy Web
Energy Web is a decentralized open-source blockchain network that aims to provide Dapp developers with possibilities in the energy industry. This goal is to be achieved through the development of digital infrastructure that connects grid operators, consumers, and physical assets (such as electric vehicles, solar panels, and thermostats) in alternative ways. As a result, the initiative has received a lot of attention.
The Energy Web Chain (EWC), unlike other public blockchains, features validator nodes run by well-known and trustworthy organizations. Many of those companies are respected energy providers. Moreover, several Software Development Kits (SDKs) published by the Energy Web Foundation (EWF) will make it easier to build on EWC. These kits support developers in optimizing and lowering the cost of developing their energy applications.
The Energy Web Token (EWT) was designed to promote the spread of renewable clean energy and is utilized as a reward for network operators. It is listed on numerous exchanges such as Kraken, BitMart, Liquid, and Hotbit.
In this way, Energy Web’s vision can help build a world in which energy is a sustainable commodity. Furthermore, its technology enables increased transparency and security. The teams at Parity Technologies and Energy Web are collaborating to develop an Energy Web Consortia Relay Chain, which will connect Energy Web to the larger Substrate, Polkadot, and Kusama ecosystems. The new chain will leverage Substrate to let energy sector companies operate their own sovereign and customisable blockchains or interact with other participants of the energy market.
DAO IPCI
DAO IPCI is a Decentralized Autonomous Organization that operates, maintains, and develops the Integral Platform for Climate Initiatives. It is primarily concerned with blockchain technology for carbon markets, environmental assets, and liabilities.
The initiative itself is not an environmental mitigation program. As a blockchain ecosystem focused on mitigating negative ecological externalities, DAO IPCI represents a digital environment built on smart contracts intended to cut transaction costs and make the issuance and transfer of mitigation units highly reliable, transparent, and protected from centralized power manipulation.
In DAO IPCI, decentralization is ensured at the most fundamental level of many mitigation programs functioning in the same space. There are no technological constraints on who can initiate an autonomous mitigation program. Existing obligatory or voluntary programs of various scopes and jurisdictions, as well as enterprises, non-profit organizations, and individuals, can establish autonomous DAOs to carry out specialized campaigns and projects on the platform.
Noteworthy is the fact that DAO IPCI has recently won the 55th slot in the Kusama parachain auction, promising to share details and its roadmap in the near future.
