Blockchain has been under the spotlight in the past year like never before. The utopian vision of a global digital financial revolution, more accessible and fair, that would replace the traditional international financial system has grown exponentially. But this same growth has created a set of problems.
From the intense use of energy and its carbon footprint, to the vulnerability and volatility revealed after the May 2022 Luna crypto crash, and a recent report that questions its decentralization, the blockchain now faces a new set of challenges.
Can blockchain transactions be green, transparent, fair and safe? Some new blockchain startups say, “Yes.” They are pushing the limits coding new innovative algorithms that might just be the future of blockchain.
The blockchain’s green energy problem
Global Investor Group reported on July 6, 2022, on the findings of the new study of the reg tech firm CUBE. According to the report, regulators are neglecting the environmental impact of crypto mining.
CUBE explored about 15,000 data points from global regulators and issuing bodies over the last four years. Their findings are shocking. While regulators are thinking big picture for crypto, with government and banks leading the way, discussions around crypto sustainability make up less than 0.1% of regulatory issuances.
As climate change mitigation policies become top-ranking priorities for all countries, cryptocurrencies’ carbon footprint have come under intensified pressure. The Cambridge Centre for Alternative Finance says that bitcoin, with a total yearly consumption of 145 terawatts hours, uses more energy than Argentina, a country of more than 47 million people.
If bitcoin were a country it would be in the top 30 energy users worldwide, the BBC reported. And other cryptos are on the same path. Ethereum uses as much energy as Switzerland with about 62 million terawatt hours of yearly consumption.
According to the Bitcoin Mining Council—which only uses voluntarily disclosed data—57% of the energy used for crypto operations comes from renewable sources, Roland and Berger reports.
The new blockchain startup movement
A new movement of tech startups is developing sustainable blockchains. Some of these tokens have feeless transactions as well as faster times of operations compared to mainstream cryptos. All of these startups share common ground. They all agree that the key to a green, fast, and decentralized blockchain is found in the algorithm.
Cardano—running an alternative to proof-of-work (PoW)—and Nano, a peer-to-peer open source crypto with a very low carbon footprint. Chia, BitGreen and IOTA are also some of the big names of this new blockchain movement.
Another startup in this new trend is HELO blockchain from NuPay Technologies. HELO claims to have virtually zero carbon footprint and free transaction fees. They also claim to have the fastest algorithm in the world.
TechRepublic spoke to Sarah Robertson, SVP of Operations at HELO, to understand what fuels the movement and how traditional blockchain operators can evolve.
Robertson said that alternatives for the consensus algorithms used in the blockchain need to be looked into. Currently, and unfortunately, the blockchain is based on Proof of Work (PoW) networks. PoW models, where thousands of computers compete to solve the next “problem” and forge a block, are the largest factor of energy consumption.
“Simply changing the consensus algorithm used to operate is not feasible, as all functions of the blockchain are based upon this,” said Robertson. To bring down the carbon footprint the entire industry would need to shift to adopting new systems.
Like other green crypto alternatives, HELO blockchain uses a different consensus algorithm to keep energy consumption to the very minimum. HELO calls its algorithm Proof of Ethic™.
“Proof of Ethic does not rely on making heavy mathematical computations for as long as possible, using expensive computer hardware,” Robertson explained.
She added that it is coupled with multiple other ingenious computer algorithms and mechanisms, to keep the carbon footprint to an extreme minimum.
A fair and decentralized crypto environment
A recent report commissioned by the Pentagon’s research arm DARPA, revealed that the blockchain’s nodes are neither decentralized, updated or secure.
Nodes are created by participants of the blockchain network. These manage, communicate and verify every transaction. In the HELO blockchain, nodes must adhere to a strict and structured behavioral system in order to perform various actions related to the decentralized network.
The HELO blockchain algorithm is based on a principle of absolute probabilistic equality. This means each node, or participant, has an equal opportunity to generate the next block without the need for heavy capital investment. It is designed to avoid centralization and create an accessible and egalitarian consensus.
As crypto went global, the crypto mining sector industrialized. Massive clandestine crypto mining hubs, crypto operations linked to criminal activities, and the use of energy from non-renewable sources became top concerns.
To address these issues, HELO developed an algorithm where computational speed does not play a factor.
“Purchasing additional computing hardware will not increase a user’s chances of reward in HELO. Staking does not play a factor, meaning that additional funds held in the blockchain will not increase a user’s chances of reward,” said Robertson.
This new, disruptive and creative approach is designed to make the blockchain more decentralized, relying on all nodes participating in the network at equal levels. “This means that no group of people can have more control or influence than others,” Robertson assured.
Speed of blockchain transactions
Another point users around the world are still struggling with is the time it can take for blockchain transactions to go through. To push a block through on Bitcoin, there needs to be 1 MB of data. This could take two seconds or five minutes.
“For sensitive data transfer or large payments, no one wants to be waiting and wondering when their transaction will be complete,” HELO said.
But HELO has more than complaints about the speed issue. They claim to have the fastest processing payment algorithm system in the world, running at about 6,250,000 transactions per second (TPS).
As a rough example, Bitcoin is capable of processing about 7 TPS, Ethereum is capable of 20 TPS, Solana is normally at 1,000 to 3,000 TPS, and Cardano’s Layer 2 solution—dubbed as “the fastest blockchain in the world”—if implemented, in theory does about 1,000,000 TPS, Nathan Trudeau, CTO of HELO said.
“We believe this will be revolutionary for the industry by providing a never before seen ability of a blockchain that users can count on,” Robertson said.
Recoding the blockchain?
The blockchain, cryptocurrencies, NFTs and digital assets continue to grow everyday. The technology, now global, is out of the bag and unlikely to return to the shadows of its early days. However, from its use of energy to the very algorithm that runs almost all transactions, the blockchain is far from being perfect.
Can the blockchain be recoded? Unfortunately, there is no simple answer to the question. Most of the components, consensus algorithms, and mechanisms of the blockchain would need to be updated.
“It is not impossible but would be extremely complex,” Robertson said.
Like most startups, the HELO community grows slowly by the day, now reaching a couple thousands. However, the first cryptocurrencies started out the same way, with just a couple of thousand of users.
Is this how the future of the blockchain begins? Will startups developing disrupting and innovative crypto solutions go mainstream? While the answer is unknown, one thing is certain, the idea of a greener, faster, and more equitable blockchain is an attractive one.
Blockchain imekuwa chini ya mwangaza katika mwaka uliopita kama kamwe kabla. Maono ya utopia ya mapinduzi ya kifedha ya dijiti ya ulimwengu, ya ufikiaji zaidi na ya haki, ambayo ingechukua nafasi ya mfumo wa kifedha wa jadi wa kimataifa, imekua kwa kasi. Lakini ukuzi huohuo umesababisha matatizo kadhaa. Kutoka kwa matumizi makubwa ya nishati na alama yake ya kaboni, kwa udhaifu na kutofautiana kulifunuliwa baada ya ajali ya crypto ya Mei 2022 na ripoti ya hivi karibuni ambayo inauliza kutengwa kwake, blockchain sasa inakabiliwa na seti mpya ya changamoto. Je, shughuli za blockchain zinaweza kuwa kijani, uwazi, haki na salama? Baadhi ya blockchain startups mpya kusema, <unk>Yes.<unk> Wao ni kushinikiza mipaka coding algorithms mpya ubunifu kwamba inaweza tu kuwa siku zijazo za blockchain. Mfano wa blockchain ni suala la nishati ya kijani, Global Investor Group iliripoti Julai 6, 2022, juu ya matokeo ya utafiti mpya wa kampuni ya teknolojia ya reg. Kulingana na ripoti hiyo, wasimamizi wanapuuza athari za mazingira za uchimbaji wa crypto. CUBE ilichunguza takriban alama za data 15,000 kutoka kwa wasimamizi wa kimataifa na mashirika ya kutoa zaidi ya miaka minne iliyopita. Matokeo yao ni yenye kushtua. Wakati wasimamizi wanafikiria picha kubwa kwa crypto, na serikali na benki zinaongoza njia, majadiliano kuhusu uendelevu wa crypto hufanyiza chini ya 0.1% ya matoleo ya udhibiti. """Kama sera za kupunguza mabadiliko ya hali ya hewa zinakuwa kipaumbele cha juu kwa nchi zote, alama ya kaboni ya sarafu za sarafu zimekuwa chini ya shinikizo kubwa." Kituo cha Fedha Mbadala cha Cambridge kinasema Bitcoin, na matumizi ya jumla ya kila mwaka ya 145 terawatt-saa, hutumia nishati zaidi kuliko Argentina, nchi yenye watu zaidi ya milioni 47. Ikiwa Bitcoin ingekuwa nchi, ingekuwa kati ya watumiaji 30 wakuu wa nishati ulimwenguni, BBC iliripoti. Cryptocurrencies nyingine pia zina njia sawa. Ethereum hutumia nishati kama Uswisi na karibu 62 milioni TWh ya matumizi ya kila mwaka. Kulingana na Baraza la Uchimbaji wa Bitcoin, ambayo hutumia tu data iliyotolewa kwa hiari, 57% ya nishati inayotumiwa kwa shughuli za crypto hutoka kwa vyanzo vya upya, ripoti za Roland na Berger. Mzunguko mpya wa blockchain wa kuanza ni maendeleo ya blockchain endelevu. Baadhi ya ishara hizi zina shughuli zisizo na hisia na pia nyakati za haraka za shughuli ikilinganishwa na cryptos kuu. Startups zote hizi zina sehemu ya kawaida. "Wote wanakubaliana kwamba ufunguo wa ""kijani,"" ""haraka,"" na ""decentralized"" blockchain ni kupatikana katika algorithm." Cardano <unk>kuendesha mbadala wa uthibitisho wa kazi (PoW) <unk> na Nano, peer-to-peer wazi chanzo crypto na alama ya chini sana ya kaboni. Pia, Bitcoin, Bitcoin, na IOTA ni baadhi ya majina makubwa ya harakati hii mpya blockchain. Helo ni moja ya kampuni za kwanza za blockchain za NuPay. Helo inadai kuwa na karibu zero carbon footprint na bure malipo ya shughuli. Pia wanadai kuwa na algorithm ya haraka zaidi ulimwenguni. TechRepublic alizungumza na Sarah Robertson, SVP wa Uendeshaji katika Helo, kuelewa nini fuels harakati na jinsi jadi blockchain waendeshaji wanaweza kubadilika. Robertson alisema kuwa mbadala kwa ajili ya makubaliano algorithms kutumika katika blockchain haja ya kuchunguzwa. Kwa sasa, blockchain ni msingi wa Proof of Work (PoW). PoW mifano, ambapo maelfu ya kompyuta kushindana kutatua "tatizo" ijayo na forge block, ni sababu kubwa ya matumizi ya nishati. "Kubadilisha tu makubaliano algorithm kutumika kufanya kazi si iwezekanavyo, kama kazi zote za blockchain ni msingi juu ya hii", alisema Robertson. Ili kupunguza alama ya kaboni sekta nzima ingekuwa na haja ya kuhamia kwa kupitisha mifumo mpya. Kama mbadala nyingine za kijani, blockchain ya HELO hutumia algorithm tofauti ya makubaliano ili kuweka matumizi ya nishati kwa kiwango cha chini kabisa. Helo inaitwa algorithm yake Uthibitisho wa Maadili. "Uthibitisho wa Maadili hautegemei kufanya hesabu nzito za hisabati kwa muda mrefu iwezekanavyo, kwa kutumia vifaa vya kompyuta vya bei ghali", Robertson alielezea. Aliongeza kuwa ni pamoja na algorithms nyingine nyingi za kompyuta na taratibu, ili kuweka alama ya kaboni kwa kiwango cha chini sana. Ripoti ya hivi karibuni iliyoagizwa na DARPA, mkono wa utafiti wa Pentagon, ilifunua kwamba nodes za blockchain hazina usimamizi, hazifanyiwa sasisho au salama. Nodes ni kuundwa na washiriki wa mtandao blockchain. Hizi kusimamia, kuwasiliana na kuthibitisha kila shughuli. Katika blockchain ya Helo, nodes lazima zifuate mfumo mkali na uliopangwa wa tabia ili kutekeleza vitendo mbalimbali vinavyohusiana na mtandao wa kutengwa. Helo blockchain algorithm ni msingi wa kanuni ya usawa wa uwezekano kamili. Hii ina maana kila node au mshiriki ana nafasi sawa ya kuzalisha block inayofuata bila haja ya uwekezaji mkubwa wa mtaji. Ni iliyoundwa ili kuepuka centralizing na kujenga kupatikana na usawa makubaliano. Kama crypto akaenda kimataifa, sekta ya madini crypto viwanda. "Kufanya kazi kwa njia ya ""crypto-mining"" na ""kufanya kazi kwa njia ya fedha"" na ""kufanya kazi kwa njia ya fedha"" na ""kufanya kazi kwa njia ya fedha"" na ""kufanya kazi kwa njia ya fedha"" ni mambo ya msingi katika sekta ya fedha." Ili kukabiliana na masuala haya, HELO iliendeleza algorithm ambapo kasi ya hesabu haichezi sababu. <unk> Kununua vifaa vya ziada vya kompyuta hakutaongeza nafasi za mtumiaji wa tuzo katika HELO. Staking haina kucheza sababu, maana kwamba fedha za ziada uliofanyika katika blockchain si kuongeza nafasi ya mtumiaji ya tuzo, "Robertson alisema. Njia hii mpya, ya kuvuruga na ubunifu imekusudiwa kufanya blockchain kuwa ya kutofautisha zaidi, ikitegemea nodes zote zinazoshiriki katika mtandao kwa viwango sawa. "Hii inamaanisha kwamba hakuna kikundi cha watu kinachoweza kuwa na udhibiti au ushawishi zaidi kuliko wengine", Robertson alihakikishia. Kasi ya shughuli za blockchain: Watumiaji wengine duniani kote bado wanashindana na wakati ambao inaweza kuchukua kwa shughuli za blockchain kupita. Ili kuanzisha block ya Bitcoin, data ya 1MB inahitajika. Hii inaweza kuchukua sekunde mbili au dakika tano. "Kwa uhamisho wa data nyeti au malipo makubwa, hakuna mtu anataka kuwa kusubiri na kujiuliza wakati shughuli yao itakuwa kukamilika, ""HELO alisema." Lakini Helo ina zaidi ya malalamiko kuhusu suala la kasi. Kampuni hiyo inadai kuwa na mfumo wa malipo wa haraka zaidi ulimwenguni, na inaendesha shughuli 6,250,000 kwa sekunde. "Kama mfano wa jumla, Bitcoin ina uwezo wa usindikaji wa TPS 7, Ethereum ina uwezo wa TPS 20, Solana ni kawaida katika TPS 1,000-3,000, na Cardano's Layer 2 suluhisho, ""blockchain ya haraka zaidi ulimwenguni"" ikiwa itafanywa, kwa nadharia inafanya TPS 1,000,000,"" alisema Nathan Trudeau, CTO wa HELO." "Tunaamini hii itakuwa mapinduzi kwa ajili ya sekta kwa kutoa kamwe kabla ya kuonekana uwezo wa blockchain kwamba watumiaji wanaweza kuhesabu juu ya,""Robertson alisema." Kuandika upya blockchain? Blockchain, NFTs, na mali ya dijiti zinaendelea kukua kila siku. Teknolojia hiyo, ambayo sasa ni ya ulimwengu mzima, imeondolewa na haiwezekani kurudi kwenye kivuli cha siku zake za mapema. Hata hivyo, kutoka matumizi yake ya nishati kwa algorithm yenyewe ambayo inaendesha karibu shughuli zote, blockchain ni mbali na kuwa kamilifu. Je, blockchain inaweza kuwa recoded? Kwa kusikitisha, hakuna jibu rahisi kwa swali hilo. Sehemu kubwa ya vipengele, makubaliano algorithms, na taratibu ya blockchain ingekuwa haja ya kusasishwa. "Si jambo lisilowezekana lakini lingekuwa gumu sana", Robertson alisema. Kama ilivyo kwa kampuni nyingi za mwanzo, jamii ya Helo inakua polepole kila siku, sasa ikifikia maelfu kadhaa. Hata hivyo, cryptocurrency ya kwanza ilianza kwa njia ile ile, na watumiaji wa maelfu kadhaa tu. Je, hii ni jinsi ya siku zijazo ya blockchain huanza? Je, startups zinazoendeleza disruptive na ubunifu crypto ufumbuzi kwenda kawaida? Ingawa jibu ni haijulikani, jambo moja ni uhakika: wazo la kijani, kasi, na usawa blockchain ni moja ya kuvutia.