Binance Smart Chain is an Eco-friendly Blockchain.
Tech Insight by ENEDEX
Binance Smart Chain (BSC) is arguably one of the most popular chains used by blockchain developers to build on, including Enedex. At its peak in 2021, BSC was handling more than 9.168M according to Ychart. This is an astonishing figure, but is this a sustainable one, knowing that there has been plenty of accusation from crypto naysayers that bitcoin and crypto, in general, are bad for the environment as they consume large amounts of energy to operate. Is this also the case for BSC?
Let’s check out the facts to know why ENEDEX, as a sustainability-conscious company, chose to build on BSC :
- Using PoSA (Proof of Stake Authority)
The critics surrounding bitcoin, ethereum and some crypto that accuse it for hogging the world’s energy are due to the fact that these crypto are using proof-of-work method to run their blockchain, which is arguably an energy-intensive process. An alternative to such process is proof-of-stake, and BSC has taken it up a notch by using PoSA (Proof of Staked Authority) network, a consensus agreement protocol that is more eco-friendly and energy-efficient.
But the tradeoff of this process is the decentralized nature of BSC which for PoSA to happen, it requires a select pool of validators to validate the whole blockchain.
2. Quantitatively Use Far Less Energy to Validate Than Bitcoin
Still, on the subject of using Proof of Staked Authority instead of Proof-of-Work, Samy Karim, BSC Ecosystem Coordinator, said, “If the Bitcoin network consumes approximately 113.89 terawatts per hour per year (TWh/year) and the traditional banking systems consume 263.72 TWh/yr, Binance Smart Chain consumes less than 1% of it.”
3. Adopting Environmental, Social, and Corporate Governance (ESG) framework
Environmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Environmental criteria consider how a company performs as a steward of nature. Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights.
In Binance, what is being done includes:
- Committing to environmental conservation and protection
- Increasing women’s representation and empowerment
- Facilitating financial inclusion
- Leveraging blockchain technology for social responsibility
- Zero-tolerance policy for any form of corruption, including insider trading
These positive policies, which are not only sustainable for the environment are affecting BSC itself due to most of BSC management being done internally and with PoSA as mentioned before.
These are the facts that have become Enedex consideration to launch $ENE on BSC among others. Not only that it cost next to nothing to transact, swap, and interact but the operation of the blockchain itself is holding a high standard for eco-friendliness and sustainability.
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