In an apparent attempt to commemorate World Earth Day, Pledge, a crypto fundraising platform for non-profits, today announced the launch of its patent-pending carbon offset initiative, through which every cryptocurrency transaction will support verified carbon offset projects.
The mining process, which is related to how cryptocurrency is recorded on the blockchain, consumes a significant amount of energy and contributes to global carbon emissions.
As a result, PledgeCrypto was inspired to commission Three Squares Inc, an award-winning environmental consulting firm, to conduct a cryptocurrency environmental impact assessment to quantify the carbon emissions of cryptocurrency transactions made on the PledgeCrypto platform, according to a statement issued here.
“At Pledge, we fundamentally believe that unlocking crypto donations will provide an abundant new source of funding for nonprofits around the world, but the process must be done in a sustainable manner,” said Pledge CEO James Citron.
“Inspired by our core values of care and community, we wanted to respond to environmental concerns about cryptocurrency, which is why we are proud to lead with the first-of-its-kind patent-pending invention to ensure that every crypto transaction through Pledge supports UNverified projects.” This ensures that PledgeCrypto will not only be the most accessible way for donors to donate digital assets and nonprofits to receive them, but also the most environmentally conscious in the industry,” he added.
Eight of the most popular cryptocurrencies were thoroughly examined in order to calculate the emissions associated with a single transaction. This in-depth analysis took into account the cryptocurrency’s total estimated energy, as well as published recent transaction volumes.
Based on the regional breakdown of transaction locations around the world, a weighted electricity emissions factor was developed. To ensure optimal data integrity, multiple data sets were also used.
While the final emissions will vary depending on the energy used, location, and currency donated, Pledge estimates that every 100 donations will generate approximately 2.6 tonnes of carbon dioxide (CO2). Pledge will cover 100 percent of the carbon footprint of each donation transaction at no additional cost to donors or nonprofits using PledgeCrypto to compensate for this environmental impact.
To read our blog on “Price of Bitcoin remains steady toward $48,000; Is it time to invest?” click here.