Sustainable Bitcoin Protocol seeks to clean up mining
As the world becomes enamoured with Bitcoin so has the mining of the cryptocurrency been called out for the damage it does to the environment, a result of the intensive computing power required.
To offset this, the start up Sustainable Bitcoin Protocol has created what it terms a Sustainable Bitcoin Certificate (SBC), a tokenized product “that captures the value of bitcoin mined using clean energy.”
The certificates are to be sold to institutional investors who will hold them alongside bitcoin, ensuring that their holdings are climate-positive and in line with their environmental goals.
The SBCs are created through three processes: adopting renewable energy such as hydro, solar and wind; financially supporting renewable energy through the purchase and retirement of Energy Attribute Certificates; and adopting CO2 reduction technology.
In order to obtain an SBC, miners of bitcoin must undergo an audit of their energy use by a third party.
The first Sustainable Bitcoin Protocol transaction was done by CleanSpark, one of the better known sustainable Bitcoin miners in the United States. As well, the company can boast the support and backing of a number of well known climate scientists, economists, NGOs, and academic institutions.
In a statement released, Sustainable Bitcoin Protocol CEO and Co-Founder Brad Van Voorhees commented: “Bitcoin has long been criticised for its energy consumption, but we’re turning that perception on its head. By creating a verifiably climate-positive asset, we’re harnessing the power of Bitcoin to drive the clean energy transition and combat climate change.
“Our team has worked tirelessly to develop the protocol and we’re excited to see the impact it will have on the crypto industry and the fight against climate change. I believe this is just the beginning of a new era for Bitcoin as the ultimate climate-conscious investment.”