๐ฑ PayPal unveils a proposal aimed at promoting eco-friendly Bitcoin mining, seeking to mitigate the environmental impact associated with the process.
๐ก The initiative offers additional Bitcoin rewards to miners utilizing sustainable energy sources, aiming to incentivize the transition to greener mining practices.
๐ The proposal, disclosed by PayPalโs Blockchain Research Group, targets Bitcoin's proof-of-work (PoW) system notorious for its high energy consumption.
๐ PayPal suggests allocating extra Bitcoin rewards exclusively to "green miners" identified through unique cryptographic hashes termed "green keys."
๐ฐ Transactions tailored for green miners would incorporate a multi-sig wallet with additional Bitcoin accessible only with green keys, accompanied by reduced fees to attract environmentally conscious miners.
๐ Despite the incentives, the proposal has sparked mixed reactions. Critics argue that many miners are already shifting towards greener methods without additional inducements.
๐ซ Concerns linger over the possibility of non-green miners processing these transactions if the low fees fail to sufficiently deter them.
๐ก PayPal's report explores alternative strategies, such as leveraging smart contracts or the Lightning Network, to directly reward green miners, albeit requiring heightened trust among participants.
