Mozilla, which is the company behind the Firefox browser, is no longer going to accept proof of work cryptocurrencies, like Bitcoin, Ethereum, Litecoin, Dogecoin, and several others as a donation. The cryptocurrency energy consumption impact is significant, as it is inefficient to use high-end equipment and mining devices in order to prove your job, often known as proof of work or PoW. As a result, these mining sites emit an enormous amount of carbon dioxide into the atmosphere.

In terms of annual power consumption, Ethereum is equivalent to the Netherlands at 112 terawatt-hours but far more than the Philippines or Pakistan. It takes a single Ethereum transaction to power an average US home for about nine days.

More than 1 500 000 Visa card transactions would use the same amount of electricity as a single transaction. A whooping 137 terawatt-hours of power are used annually by Bitcoin. It is worth noting that now Mozilla is going to accept only proof of stake cryptocurrencies. Solana, Cardano, Polkadot, and other PoS cryptos are among the most popular ones. Using PoS, only a small number of crypto miners or “validators” are allowed to mine bitcoin. Because of this, high-tech mining equipment is unnecessary, which considerably reduces energy consumption.

Mozilla Against PoW Cryptos

Mozilla has committed to environmental sustainability by aiming to reduce its greenhouse gas emissions year over year. In January 2021, the company made a promise to exceed the Paris Climate Agreement’s net-zero emissions targets.

“We pledged to support the creation, design, and improvement of products with a focus on sustainability. When it comes to cryptocurrencies, we believe Mozilla can play a crucial role in making the energy usage habits of the accepted ones more transparent,” stated Mozilla’s CEO.

The Environmental Impact of Bitcoin

Despite the growing awareness about the cryptocurrency energy consumption impact of Bitcoin (BTC), many investors and traders continue to trade with it. To enhance their trading efficiency, many people use tools like Bitcode Prime, an AI-based platform that automates trading processes.

Ethereum’s Transition: PoW to PoS

Ethereum plans to transition from the energy-intensive proof of work (PoW) model to the more energy-efficient proof of stake (PoS) model. No official date has been set yet. The PoW method will remain in place until the transition is complete.

In the meantime, crypto storage provider Blockstream and Bitcoin development firm Block Inc. have announced their collaboration. They plan to establish an open-source, solar-powered Bitcoin mining facility in the United States.

Can Bitcoin Be Staked?

The environmental consequences of cryptocurrencies like Bitcoin continue to be a contentious topic. Bitcoin consumes a significant amount of energy — more than 1,700 kWh per transaction, which exceeds the average monthly electricity consumption of a U.S. household.

Although proof of work (PoW) is an essential consensus mechanism for Bitcoin, it is also energy-intensive, raising environmental concerns. This has led to Bitcoin being criticized for its high energy consumption.

The Rise of Proof of Stake (PoS)

To address these concerns, developers created a more energy-efficient consensus mechanism called proof of stake (PoS). PoS uses a decentralized network of validators to validate and create new blocks on the blockchain. Validators stake their own cryptocurrency as collateral to earn compensation for their work.

Many cryptocurrencies, such as Polkadot, Solana, and Cardano, use PoS or delegated proof of stake (DPoS). Ethereum, which currently operates on PoW, will transition to PoS with its Ethereum 2.0 update.

Will Bitcoin Switch to PoS?

With the increasing adoption of staking and PoS models in other cryptocurrencies, there is speculation about whether Bitcoin will ever switch from PoW to PoS. However, it’s unlikely that Bitcoin will transition to PoS. Bitcoin relies on PoW, and its blockchain miners are entrenched in this consensus model, which was first introduced by Bitcoin.

Switching to PoS would require retraining miners and could disrupt the Bitcoin network, potentially lowering rewards for miners and introducing new vulnerabilities. Furthermore, PoW is seen as the more secure method, as it ensures the safe movement and storage of money and makes Bitcoin nearly immutable.

The Future of Bitcoin and Staking

While many cryptocurrencies have transitioned to PoS for its energy efficiency, it seems that Bitcoin will remain committed to PoW for the foreseeable future. This means that Bitcoin will likely remain unstageable, while other cryptocurrencies that use PoS will continue to grow in popularity.