Other Consensus Mechanisms

There is an endless list of consensus mechanisms so it wouldn’t make sense to delve into all of them here and new ones are cropping up all the time. Some examples include:

• Proof of Capacity (PoC)

• Proof of Elapsed Time (PoE)

• Proof of Identity (PoI)

• Proof of Activity (PoA)

• Directed Acyclic Graph (DAG) - technically an alternative to a traditional blockchain but still categorized as a distributed ledger

Whilst PoW has its shortcomings, it can be made more efficient and environmentally friendly, such as by increasing block sizes, developing more energy-efficient mining algorithms, and using more renewable energy for mining. With enough stakeholder support, protocol changes are possible, as demonstrated by the introduction of SegWit four years ago.

Whilst we're seeing the rise of more efficient blockchain protocols, these won't be replacing Bitcoin as the most secure blockchain whose primary function is as a store of value that has never to date been hacked.

Even the most efficient blockchain protocols will not be able to replace the electricity used by miners for crypto mining, which is expected to increase. As a result, so-called sustainable cryptocurrencies that don't consume much electricity are not sufficient. These projects inspire us to believe that the crypto industry is "greenifying”, but the reality is that emissions in traditional blockchains are only going to increase.

The reason is that traditional PoW mining has been built on a foundation of fossil fuels, and this will not change in the near future. The entire global financial system is largely powered by fossil fuels, which are non-renewable resources.

We need a new approach that enables us to continue using crypto while reducing our carbon footprint at the same time. This is where ImpactScope comes in.