Is PlatonCoin greener than Bitcoin? If you keep up with what’s going on in the crypto world, you will not have missed the drop in the price of Bitcoin, which is, among other things, linked to the ban on BTC mining in China and the announcement by Elon Musk that Tesla will no longer accept Bitcoin as payment because of its environmental impact. Let’s take a closer look at where Bitcoin stands and compare it to PlatonCoin.
Bitcoin, history and mining
Bitcoin was created in 2009 and since then people have been able to mine it. Back then, pretty much any computer was enough to get you hundreds or even thousands of bitcoins every day. Over time, mining became more difficult and nowadays you can find huge farms that are full of special hardware or graphics cards. If you were to enter such a farm, you would feel the instant heat from the hardware running and you would probably wonder how much electricity it consumes.
According to a study by Galaxy, Bitcoin’s annual electricity consumption is estimated at 113.89 terawatts per hour, including miner demand power, miner power consumption, pool power consumption, and node power consumption. Even so, this is still roughly half the consumption of the banking system. However, it is still a large consumption, and it is unfortunately also true that renewable energy is not always used.
PlatonCoin versus Bitcoin
PlatonCoin was built from the start to bring an ecosystem and alternative to the banking system. As with Bitcoin, PlatonCoin has a finite supply of coins, namely 300,000,000 units. PlatonCoin was built on Ethereum blockchain, which means that transactions are also approved via the Proof-of-Work system, like with Bitcoin. However with PlatonCoin, there are two differences.
The first is that this applies only for transactions outside the ecosystem Platon Life. All transactions within the ecosystem are based on a layer on top of Ethereum blockchain, so there is no need of PoW system. And the second difference will be with Ethereum changing from Proof-of-Work to Proof-of-Stake, which should take place this year already. With this, there will be no need of mining, because transactions will be approved by validators instead.
With this, we can see that PlatonCoin is much more nature-friendly than Bitcoin. It is not mined, so there is no need for electricity to receive it, but you can choose much more pleasant ways to multiply your coins such as staking, for example. If you are confused about the Proof-of-Work and Proof-of-Stake concepts, stay tuned, we are preparing an in-depth article to explain that.