DMG Blockchain Solutions Inc. (TSXV: DMGI) (OTCQB US: DMGGF) (FRANKFURT: 6AX) and PayPal (NASDAQ: PYPL) are collaborating with clean energy nonprofit Energy Web (EWT), to find ways to decarbonize the Bitcoin blockchain.
The companies announced on Wednesday their intention to develop methods for using a carbon neutral payment rail for transactions on the Bitcoin blockchain. The three companies will start with a research paper to explore using carbon neutral options in transactions on the blockchain.
PayPal has pioneered new payment technologies by developing its bitcoin payment rail and incorporating blockchain technology. In August 2023, it introduced the PayPal USD (PYUSD) stablecoin in collaboration with Paxos Trust Company to enable efficient transactions.
Concurrently, Energy Web has launched the Green Proofs for Bitcoin (GP4BTC) initiative, which seeks to create an independent, standardized energy measurement system for the Bitcoin mining industry. Meanwhile, DMG is focusing on a carbon-neutral bitcoin mining pool and developing technology that facilitates the transfer of bitcoin between users without increasing their carbon footprint. DMG significantly contributes to this sector through its unique technology stack and expertise in Bitcoin Core software engineering.
“We are pleased to be devoting resources to this collaboration with PayPal as well as Energy Web, which complements our ongoing efforts to decarbonize the Bitcoin blockchain,” Sheldon Bennett, DMG’s CEO, said.
“As DMG is already an industry leader with Terra Pool, the industry’s first carbon-neutral mining pool with Petra, a transaction technology that leverages Terra Pool, we are excited to work with a large enterprise partner; PayPal’s extensive capabilities will undoubtedly accelerate the advancements we have initiated, significantly advancing our sustainable practices forward.”
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DMG aims to set new industry standard for blockchain
In collaboration with PayPal, DMG aims to set a new industry standard for blockchain applications in financial services, driving the industry toward adopting more environmentally sustainable technologies. This represents a proactive effort to address the environmental concerns associated with cryptocurrency operations and contributes to the decarbonization of the global economy.
“Collaborating with DMG’s innovative approach to blockchain sustainability sets a robust example for the industry. Having industry leaders like DMG actively engaging in our initiatives significantly enhances our efforts to integrate sustainable practices across all facets of blockchain technology,” Jesse Morris, Energy Web’s CEO, said.
The Bitcoin blockchain raises significant environmental concerns primarily due to its reliance on energy-intensive proof-of-work (PoW) consensus mechanism in its mining processes. This mining process requires vast amounts of electricity, which is often sourced from fossil fuels.
As the demand for Bitcoin grows, so does the strain on energy resources, exacerbating the environmental impact.
This situation makes the Bitcoin blockchain a prime candidate for decarbonization initiatives. Implementing more sustainable mining practices, such as using renewable energy sources and enhancing energy efficiency, are crucial steps toward mitigating its ecological footprint.
Such changes not only aim to reduce the direct carbon emissions associated with Bitcoin mining but also encourage broader adoption of green technologies within the cryptocurrency industry, aligning it with global efforts to combat climate change.
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