Staking Сryptocurrencies As A Way To Preserve The Environment

By IMBA-Exchange on Altcoin Academy

IMBA-Exchange
Jul 29, 2019 · 6 min read
Photo from the source

ny investor in cryptocurrencies wants to receive passive income without the cost of purchasing expensive equipment. When mining cryptocurrencies on POW, this is not possible due to the growing complexity and obtaining blocks by selecting the only correct hash. Alternatively, the earnings on the coins having a different mechanism of consensus — POS. This type of mining is called STAKING cryptocurrency.

Cryptocurrency Staking is an alternative method of mining, which involves storing virtual coins on a wallet connected to the Network. In other words, it is the mining of coins working on the POS consensus mechanism. The principle of earnings is similar to buying shares and then receiving dividends or making a Deposit. Yields and Stacking methods may vary depending on the POS rules in effect for a particular virtual coin. At the same time, it is easier to earn cryptocurrency, because there is no need to buy special equipment — it is enough to have a PC, connect to the global network, buy and store virtual coins on the wallet.

POW vs POS. Photo from the source.

How Much Can You Earn?

While the concept of receiving rewards for storing cryptocurrency looks quite attractive, it cannot be said that you will be able to get very rich. In most cases, the Stacking rewards are less than the usual block rewards issued by the network. They are also distributed among everyone who holds coins at that point in time, which means that some users may not see the rewards for hours or days.

Depending on the price of the cryptocurrency in question, the reward for Staking can still generate substantial passive income. Every dollar earned on nothing special is easy money, especially in the cryptocurrency world. Users usually earn a few percents of their Staking balance throughout the year.
There are cryptocurrencies based on POS technology, the idea of which is to save the cryptocurrency community from high energy costs and expensive mining equipment. In addition, when it comes to equity participation, in addition to the financial component, some crypto projects pay special attention to environmental safety.

Michael Eder, CEO of InterCrone, says:

Of course, today a huge number of coins are based on the POW algorithm, but the main drawback of such coins are high energy costs and expensive equipment for mining, so in many cases, this process ceases to be profitable as a result of reducing the cost of many cryptocurrencies. In addition to cost and economic feasibility, we at InterCrone focus on environmental safety. With different types of Staking, you don’t need to waste electricity and as a result, don’t harm the environment. Thus, you create financial stability for yourself, save resources and, most importantly, preserve the ecological environment.

So, cryptocurrency InterCrone (ICR) brings passive income from Staking 19% per year and is reduced by 1% per annum until a maximum of 200 million coins is harvested. The reduction of 1% per annum serves for the systematic stabilization of the coin. This makes the InterCrone more predictable for the markets in the long run and thus secures the trust in acceptance points.

It is enough to register on the website www.intercrone.com, in your account to have a wallet, buy the required number of coins ICR and activate the Stacking function for a period of 1 month to 1 year. Of course, this is more profitable than interest on savings accounts of banks, but in any case, we must not forget about the variability and volatility of the value of cryptocurrencies.

How InterCrone Stacking works. Photo from the source.

Is it Possible to Minimize Damage to the Environment?

Cryptocurrency miners rarely think about environmental problems, preferring to be based in countries with the lowest possible production costs, such as China, where cheap electricity is produced by coal stations, which leads to a deterioration in the overall carbon footprint of bitcoin.
Do not forget that bitcoin is the first, but not the only cryptocurrency in the world. And how much is spent on the extraction of altcoins, it is simply impossible to calculate!

Bitcoin Energy Consumption Index.

Nevertheless, some mining corporations are still thinking about reducing their carbon footprint.

For example, Qarnot builds equipment that redistributes the heat generated by computers to heat homes and offices. However, this technology is suitable only for countries with cold climates, because in hot areas the heat generated will require additional energy to cool the building.

In General, the crypto industry has been asking about the use of the generated heat for quite a long time.

The non-triviality and diversity of the proposed solutions are impressive.
According to experts, if mining does not find alternative methods of production, it can become a serious threat to the environment, along with the production capacity of plants.

How Can Blockchain Help the Environment?

On the other hand, if we consider the blockchain separately from mining, then in the matter of redistribution of available energy it can already become an indispensable tool.

Because conventional power systems are centralized, they can be inefficient and leave unused surpluses, while in some parts of the world affected by natural disasters or poverty, power cuts can leave people without access to the most basic necessities of life.

A power system that is based on a peer-to-peer blockchain can reduce the need to transfer electricity over long distances, thus reducing the losses that inevitably occur during transportation.

Some companies are already actively developing in this area.

For example, Transactive Grid, a company founded by ConsenSys and LO3 Energy, is working on SunContract, a peer-to-peer trading platform for renewable energy.

More blockchain in General and cryptocurrencies, in particular, can serve as an incentive for people to participate in waste recycling.

Recycling is a program that provides participants with a reward in the form of tokens in exchange for recycling: cans, bottles and plastic containers. Such installations are already operating in different parts of the world.

Social Plastic is a project that turns plastic into currency and creates collection centers in third world countries.

Having handed over unnecessary garbage in one of these points, people can use a variety of services such as charging the phone or get free food. Currently, they are working on an application with a blockchain that will allow people to exchange plastic for tokens.

Conclusion

Due to the fact that the technology does not stand still, we think that in the near future an alternative method of energy production for the production/production of cryptocurrencies will reduce the impact on the environment.

Examples of alternative energy and methods of its production already exist, and every day they become more and more effective. We think that this trend will come to mining.

Material developed by the Legal Department of EdJoWa Holding

The Capital

The Capital (former Altcoin Magazine) is a social financial news aggregator powered by Bitcoin

IMBA-Exchange

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IMBA-Exchange is a new exchange for trading digital assets (cryptocurrencies), which is created to unite people around the world.

The Capital

The Capital (former Altcoin Magazine) is a social financial news aggregator powered by Bitcoin

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