The argument that bitcoin is harmful to the environment is popular among crypto-skeptics, who never miss an opportunity to discredit the entire system. Despite the efforts of enthusiasts to prove the opposite, the opposing camp remains inflexible. It is in this context that PayPal took the initiative to set up a rewards system for “green miners”.
PayPal and “green miners”: an ecological revolution in the crypto universe
The online payments giant, PayPal, which recently ventured into the world of Web3 with projects including NFTs, blockchain and cryptocurrencies, does not intend to turn back. Once crypto technology has been adopted, he intends to leave his mark on this new universe, whether by revolutionizing cross-border transfers with the PayPal USD stablecoin or by encouraging bitcoin miners to opt for more environmentally friendly practices.
and Green Proofs for Bitcoin #GP4BTC are collaborating with Paypal on the Green Mining initiative – an innovative approach to supporting the decarbonization of Bitcoin by financially rewarding miners who use clean energy. »
PayPal's Blockchain Research Group, hand in hand with Energy Web and DMG Blockchain Solutions, unveiled a proposal to encourage bitcoin miners to adopt eco-responsible practicesaccording to a recent blog post.
The idea? To use “crypto economic incentives” to encourage the use of low-carbon energy sources. “Green miners” would be assigned special “green keys”, associated with their public keys, and would benefit reduced fees and additional BTC rewards for their transactions.
“ Green miners will be incentivized to mine these transactions since they will be the only ones able to benefit from the additional reward in “blocked” BTC “, explained the company.
This initiative aims to stimulate innovation and open dialogue on role of Bitcoin in the energy transition. Leveraging Energy Web’s “Green Proofs for Bitcoin” platform, miners will be certified based on their ecological impact, paving the way for more environmentally friendly crypto mining.
Conclusive tests for PayPal BRG and green miners
In a recent experiment conducted with DMG Blockchain Solutions Inc., PayPal BRG announced that it successfully tested its proposed solution. The objective? Broadcast multiple transactions at low cost to evaluate its effectiveness at different levels of on-chain transaction volume.
According to the company's observations, depending on the volume, some transactions could take a long time to be confirmed or would even be abandoned by the network. However, this solution would increase the chances of success of green transactions, thus providing green miners a better opportunity to recover them.
While other approaches are possible, such as using private channels like the Lightning Network or smart contracts, these could come with trade-offs, including more complex implementation.
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