🌱 PayPal unveils a proposal aimed at promoting eco-friendly Bitcoin mining, seeking to mitigate the environmental impact associated with the process.
💡 The initiative offers additional Bitcoin rewards to miners utilizing sustainable energy sources, aiming to incentivize the transition to greener mining practices.
📊 The proposal, disclosed by PayPal’s Blockchain Research Group, targets Bitcoin's proof-of-work (PoW) system notorious for its high energy consumption.
🔑 PayPal suggests allocating extra Bitcoin rewards exclusively to "green miners" identified through unique cryptographic hashes termed "green keys."
💰 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.
🔄 Despite the incentives, the proposal has sparked mixed reactions. Critics argue that many miners are already shifting towards greener methods without additional inducements.
🚫 Concerns linger over the possibility of non-green miners processing these transactions if the low fees fail to sufficiently deter them.
💡 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.
