Paying Gas Fees for Mining: A Must Needed Action?

You can also start mining on your smartphone, both on an Android device and an iPhone.
You can also start mining on your smartphone, both on an Android device and an iPhone.

Many adopters in the crypto industry choose to mine for investing. And although this investing method can be volatile, it remains a popular option.

Unfortunately, blockchains that demand an energy-intensive process, whether or not related to cryptography, may produce too much carbon if they use energy from non-renewable sources. Due to a specific problem in any digital currency system – double spending – Bitcoin depends on miners to record and validate transactions.

For example, mining Bitcoin in the US results in billion of pounds of carbon emissions. Proof of Work mining uses a lot of computing power, which consumes enough electricity that rivals that of entire countries.

But the cryptocurrency industry is looking to reduce 100% of its carbon emissions by 2030. So, alternatives for investors already appeared, which are more and more popular: gasless blockchains.

How to start mining

Of the many ways to invest in crypto, mining has remained among the most popular. Why? Because the method itself is simple, and anyone can do it.

There’s nothing unsafe about using your computer to mine for cryptocurrencies. However, since it takes a high-speed internet connection and a powerful computer to mine effectively, you may find that the costs of mining for cryptocurrencies are higher than whatever digital cash you earn.

You can also start mining on your smartphone, both on an Android device and an iPhone. Phones are computers, and any computer can be set to the task of computing hashes. A hash is a one-way transformation of data.

And if you’re wondering if mining is legal, you can erase your worries. Mining is legal in most cases. However, there are a few countries where Bitcoin mining is outlawed, such as China, Algeria, Egypt, Iraq, Morocco, Nepal, and Qatar, for pollution reasons.

If you are ready to mine, here are the basic steps for the beginning:

  1. Start by choosing and setting the hardware you’ll use to mine.
  2. Create a dedicated wallet. You need a valid wallet to get paid when you successfully validate a block.
  3. Configure your mining equipment.
  4. Start mining.

What are the consequences?

Mining, crypto assets, and other related activities can significantly impact the environment. Blockchains that need an energy-intensive process, whether related to cryptography, may produce too much carbon if they use non-renewable energy. Studies and statistics underline how much crypto mining affects global warming.

According to NBC, a study published in the 2019 issue of the scientific journal Joule determined that “the annual carbon dioxide emissions from Bitcoin production are estimated to range between 22 and 22.9 million metric tons.” That equals the emissions from 2.7 billion homes, or Jordan and Sri Lanka combined.

Global electricity generation for the crypto-assets with the largest market capitalizations resulted in a combined form of tons of carbon dioxide per year, which means 1% of the world’s annual electricity consumption or about 0.3% of the world’s annual greenhouse gas emissions.

Alternatives: gasless blockchains

Like environmental pollution, another significant reason to reconsider and move to a gasless blockchain is paying fees.

In general, all blockchain transactions require the payment of a transaction fee. Starting with simple transactions and continuing with creating a non-fungible token (NFT) or creating and executing a smart contract, they generally require Gas fees (in Ethereum) to be completed and added to the blockchain.

The problem with traditional Blockchains is that industries or companies do not want to pay for gas, or their consumers pay for it just to perform these transactions. And no matter how small, the cost of these transactions on an industry/company-wide scale can add up.

Because many users and companies have complained about paying gas taxes, many have started to reconsider and think about investing in a gasless blockchain, like $REDLC from Redlight Finance.

This gasless blockchain is trying to address the issues with traditional blockchains. In addition to its goal of creating a blockchain-compatible EVM that focuses on scalability, decentralization, and security, it allows users to target industries that might not have given blockchain integration much thought in the past.

Ending note

When we complete an action, we must think about its consequences. It’s tempting to have money and invest constantly, but the best investments are those that are projected well into the future.

The issues of pollution and global warming are real problems, which, at first glance, seem unrelated but are closely connected to crypto investing.