Digital asset exchange, Gate.io, recently announced that its public chain, GateChain, organically solves the blockchain energy consumption problem and enables long-term sustainability. GateChain uses a proof-of-stake (PoS) approach instead of a proof-of-work (PoW) one.
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How GateChain Improves Upon The Problems With PoW
Tesla CEO, Elon Musk, announced on May 13 that Tesla would no longer accept Bitcoin as payment due to environmental concerns – it brought a lot of attention to the blockchain’s energy consumption problem and long-term sustainability.
The Bitcoin blockchain runs on the PoW algorithm, wherein nodes with specialized mining equipment spend their computational resources to solve cryptographically hard puzzles. In fact, as per BBC, Bitcoin consumes more energy than Argentina. A single bitcoin transaction has the same carbon footprint as 680,000 Visa transactions or bingeing YouTube for 51,210 hours. Plus, many argue that the majority of the power used in mining comes from sustainable energy, however, the recent flooding incident in Xinjiang coal mines, which reduced Bitcoin hashrate by >30% shows that BTC still remains heavily dependent on fossil fuel.
As the network gets bigger, the difficulty of solving these equations increases exponentially, which will demand more resources and energy. GateChain overcomes this resource-hungry approach by using an energy-saving public chain focused on on-chain asset safety and decentralized trading through PoS. Individual hashrate in GateChain’s PoS is no longer dependent on the mining equipment owned by the node, but on the amount of coins they have locked up within the system. This way, instead of utilizing energy to answer PoW puzzles, a PoS miner is limited to mining a percentage of transactions that is reflective of their ownership stake.
Gate.io and GateChain
Gate.io has been operational since 2013 and is the second largest cryptocurrency exchange in terms of spot trading volume and traffic.
“GateChain’s native token – Gate token – has increased by more than 1,500% since the beginning of 2021. It also supports decentralized trading and cross-chain transfers alongside other core features, implying that it can process significantly more transactions per second at minimal cost while accommodating an ever-expanding user base,” said Marie Ttaibouet, CMO at Gate.io.
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GateChain Is Ideal For Both Users And Developers
With a uniquely designed Vault Account, primed for handling abnormal transactions, GateChain tackles asset theft and private key loss challenges. By using GateChain, users can incur low transaction costs and face minimal transaction delays. Along with that, they can leverage high transaction concurrency, cross-chain asset transfers, and safe and flexible storage.
On the other hand, developers can get funding ranging from tens of thousands to millions of dollars from GateChain labs incubator program and get their projects deployed on GateChain’s ecosystem, provided they meet the quality standards. Finally, GateChain’s smart contract support feature reduces development costs.
GateChain also provides a powerful platform for DeFi apps by providing strong infrastructure support and resourceful partners. Features like benchmarking other DEXs and decentralized lending platforms will provide users with a rich and abundant DeFi ecosystem.
A Necessary Change
With the widespread use and application of blockchain technology, new technologies should be designed in an environmentally friendly manner. This change is necessary to ensure sustainability. After all, no one wants to see a disruptive, promising tech stand in the way of global efforts to reduce carbon emissions.
