Tue, July 02, 2024 at 16:37

• 

  Kang-hoon

  • Hello, Annie.

  • Today, I have some interesting news about the environmental impact of the Cardano blockchain, as assessed by the Crypto Carbon Ratings Institute (CCRI) under the new MiCA regulations.

  • 
• Annie

  • Oh, that sounds intriguing!😊 What did the assessment reveal?

  
• 

  Kang-hoon

  • The CCRI report provides a detailed look at Cardano's energy usage, carbon emissions, waste production, and overall environmental impact.

  • Notably, Cardano operates on a Proof of Stake (PoS) protocol called Ouroboros, which significantly reduces energy consumption compared to traditional Proof of Work (PoW) networks like Bitcoin.

• Annie

  • Interesting!

  • How much energy does Cardano consume annually?

  
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• 

  Kang-hoon

  • The annualized energy consumption of the Cardano network is 704.91 MWh.

  • For comparison, traditional PoW networks consume energy equivalent to the output of small countries.

• Annie

  • Wow, that's a huge difference!

  • What about carbon emissions?

  
• 

  Kang-hoon

  • Cardano's total annualized carbon emissions are calculated at 250.73 tonnes of CO2 equivalent, with a carbon intensity of 356 grams of CO2 per kWh.

  • This indicates a mixed reliance on both renewable and non-renewable energy sources.

• Annie

  • Hmm, it seems like there's room for improvement in using more renewable energy.

  • What about waste production?

  
• 

  Kang-hoon

  • Yes, indeed.

  • The Cardano network generates approximately 8.26 tonnes of waste electrical and electronic equipment (WEEE) annually, with 51.93% not being recycled.

  • 

  • This highlights a need for better waste management practices.

• Annie

  • That's quite a bit of waste.

  • What about the impact on natural resources?

  
• 

  Kang-hoon

  • The report also discusses the impact on natural resources, including the critical raw materials required for hardware production.

  • These materials are often scarce and have significant environmental and economic extraction costs.

  • Additionally, energy consumption indirectly affects water usage, especially in regions relying on non-renewable energy sources.

• Annie

  • It sounds like Cardano is making strides but still has challenges.

  • How does this align with the new MiCA regulations?

  
• 

  Kang-hoon

  • Under the MiCA regulations, which came into force in June 2023, all crypto-asset service providers must disclose comprehensive environmental impacts.

  • The CCRI's detailed report on Cardano not only meets these requirements but also sets a precedent for transparency in sustainability reporting within the crypto industry.

• Annie

  • That's good to hear.

  • How many nodes does the Cardano network operate, and how many transactions does it process?

  
• 

  Kang-hoon

  • The Cardano network operates 3,147 nodes and has processed an annualized count of 19,530,055 transactions.

  • The average power per node is 25.576 watts, with the total network power amounting to 80.47 kW.

  • The power demand per transaction per second (TPS) is 0.192 W.

• Annie

  • Those are impressive numbers!

  • So, overall, what does this mean for Cardano and its future?

  
• 

  Kang-hoon

  • Overall, the CCRI's report provides essential insights into Cardano's environmental profile and its alignment with global sustainability goals.

  • As the crypto industry faces increasing scrutiny over its environmental impact, such assessments are crucial for investors, regulators, and the broader community to make informed decisions about the sustainability of blockchain technologies.

• Annie

  • Thank you for the detailed explanation, Kang-hoon.

  • So, would you say this news is a positive development for Cardano and the crypto market?

  
• 

  Kang-hoon

  • Yes, Annie, I would say this is a positive development.

  • The transparency and detailed reporting set a strong precedent for the industry, and Cardano's efforts in reducing its environmental impact are commendable.

  • This positions Cardano well in the market, especially as sustainability becomes a more critical factor for investors and regulators.

  • Upon comprehensive consideration, this news is perceived as a 😍Bullish.