Cardano Is MiCA Ready:
New Report Releases
Sustainability Indicators
Cardano Is MiCA Ready: New Report Releases Sustainability Indicators
by Jake Simmons
2 mins ago
in Cardano
0
In an environmental assessment mandated by the emerging Markets in
Crypto-Asset (MiCA) regulations, the Crypto Carbon Ratings Institute (CCRI)
has released detailed sustainability indicators for the Cardano blockchain• Информационные технологии » Информационно-коммуникационные технологии » Информационные технологии и телекоммуникации » Базы данных » Публичная база транзакций » Блокчейн
• Высокие технологии » Информационные технологии и телекоммуникации » Базы данных » Публичная база транзакций » Блокчейн.
CCRI has teamed up with the Cardano Foundation to work on the sustainability
assessment which provides a granular look at the network’s energy usage,
carbon emissions, waste production, and its broader environmental impact,
serving as a compliance check against the European Securities and Markets
Authority’s (ESMA) latest regulatory standards.
Cardano Is MiCA Ready
Cardano s infrastructure, operating on a Proof of Stake (PoS) protocol
named Ouroboros , shows a significant reduction in energy consumption when
compared to traditional Proof of Work (PoW) networks. The annualized energy
consumption of the Cardano network stands at 704.91 MWh. For perspective,
traditional PoW networks like Bitcoin• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта » Bitcoin consume an immensely higher amount of
energy, often equating to the output of small countries, as the report notes.
Related Reading: Cardano Founder Urges Caution On AI Risks Amid Robinhood’s
Technological Push
The total annualized carbon emissions for Cardano are calculated at 250.73
tonnes of CO2 equivalent. The carbon intensity, which measures the emissions
per unit of electricity consumed, is noted at 356 grams of CO2 per kWh. This
figure is indicative of the types of energy sources utilized by the network,
reflecting a mixed reliance on both renewable and non-renewable resources.
The CCRI report states, “We find a total annualized carbon footprint of 250.73
tCO2e for the Cardano network. The carbon intensity of the consumed
electricity sits at 356 gCO2 per kWh, suggesting a marginal but necessary
focus towards more renewable sources to further decrease this metric.”
One of the new metrics introduced by the MiCA framework is the measurement of
waste production, particularly focusing on electronic waste. The Cardano
network generates approximately 8.26 tonnes of waste electrical and electronic
equipment (WEEE) annually. Of this, 51.93% is not recycled, spotlighting an
area for improvement in waste management practices within the network’s
hardware lifecycle.
Related Reading: Here’s Why XRP and Cardano Might Not See ETFs Anytime Soon —
Report
The report delves into the impacts of the network’s operations on natural
resources, including the critical raw materials required for the production of
the hardware components. These materials are often scarce and have significant
extraction costs, both environmentally and economically. The network’s energy
consumption also indirectly affects water usage, especially in regions where
non-renewable energy sources are predominant and water is used extensively for
cooling purposes in power generation.
Under the MiCA regulations, which came into force in June 2023, all
crypto-asset service providers are mandated to disclose comprehensive
environmental impacts of their operations. The CCRI’s detailed report on
Cardano not only aligns with these requirements but sets a precedent for
transparency in the reporting of sustainability metrics within the crypto
industry.
The Cardano network, at the time of reporting, operates 3,147 nodes and has
processed an annualized count of 19,530,055 transactions. These operational
figures are critical in understanding the network s physical
infrastructure and its environmental load. The average power per node is
reported at 25.576 watts, with the total network power amounting to 80.47 kW.
The power demand per transaction per second (TPS) is 0.192 W.
Overall, the CCRI’s report provides an essential insight into Cardano’s
environmental profile and its alignment with global sustainability goals. As
the crypto industry faces increasing scrutiny over its environmental impact ,
such assessments will be crucial for investors, regulators, and the broader
community to make informed decisions about the sustainability of blockchain• Информационные технологии » Информационно-коммуникационные технологии » Информационные технологии и телекоммуникации » Базы данных » Публичная база транзакций » Блокчейн
• Высокие технологии » Информационные технологии и телекоммуникации » Базы данных » Публичная база транзакций » Блокчейн
technologies.
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