So far, it can be said that the European Union has taken a fairly permissive attitude towards blockchain, compared to some parts of the world. The Commission is now preparing an arsenal of regulatory frameworks to make the sector greener. This, in the same way as the other branches of the regional economy.
Make blockchains greener!
The European Commission comes to introduce a measure to introduce energy efficiency labels for blockchains. The decision is part of the region’s efforts to bring about an in-depth transformation of the energy system. Indeed, Europe wants to eliminate its dependence on fossil fuels and switch to cleaner energy. The new measure could be beneficial for more environmentally friendly blockchains that use Proof-of-Stake (PoS), such as Ethereum or Solana.
Once valid, it will control the energy consumption of the sector. It will also promote an environmental labeling system for data centers and specialized computers. In addition, it will assess and clarify the exact amount of energy consumed by blockchains.
“The objective is to make our energy system more efficient and ready to accommodate a growing share of renewable energy sources. For this, we need more innovative digital solutions and a much smarter and more interactive network than today”said Kadri Simson, Energy Commissioner.
Facilitate the mobilization of funds to finance research
Furthermore, the European Union’s energy commissioner indicated that the new measure will provide financial support for research on energy-coupled blockchain technologies. This, through various programs driven by the public sector.
The new device should put a lot of pressure on protocols that work with proof-of-work, such as Bitcoin. These could be forced to accelerate their transition to exclusively clean energy consumption. Even if the authorities have not mentioned it, the labels could eventually lead to an outright ban on mining with polluting energies.
Europe is determined to have an energy mix devoid of any fossil energy. This, in all sectors of activity of its economy. The blockchain, which is an area whose energy consumption is not negligible, is in the sights of the authorities. Remember that this is not the first time that European leaders have studied a law of this guy. The Crypto Asset Markets (MiCA) Regulation is expected to come into effect next year. It will require certain market players to disclose their environmental and climate footprint.
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