Mozilla, the company behind the Firefox Internet browser, aims to soothe an environmentally friendly community by accepting only donations of Proof of Stake (PoS) cryptocurrencies. The company frozen donations of all cryptocurrencies in January. But now, after a review to measure community sentiment and conduct research on the use of crypto energy, the company has resumed them. In the change, the company said it would not accept Proof of Work (PoW) cryptocurrencies, which require more energy. This means that donations of cryptocurrencies such as Bitcoin, Ethereum, Litecoin and Dogecoin will not be accepted.
PoW coins are energy inefficient because they require high-end technology and mining devices to function. These mining centers then emit large amounts of carbon dioxide, which has a negative impact on the environment.
The company that updated the donation policy in the blog post. The changes are as follows: “Mozilla will no longer accept the more energy-consuming” proof of work “cryptocurrencies. Mozilla accepts less energy-intensive “proof of stake” cryptocurrencies. Mozilla plans to create and share a list of cryptocurrencies it accepts by the end of the second quarter of 2022. “
Mozilla has promised to significantly reduce its greenhouse gas footprint each year in January 2021 with the goal of exceeding the net zero emissions target of the Paris Climate Agreement. The first change in the company’s donation policy was aimed at making it happen.
The company said its decision to refuse prisoner of war donations ensured that its funding efforts were in line with its carbon reduction goals.
By rejecting all non-PoS ciphers, Mozilla effectively bans both Bitcoin and Ethereum.
According to data from Digiconomist blockchain researchers, Bitcoin consumes about 204.5 terawatt hours (TWh) of energy each year. However, the actual impact on climate is far more controversial. Proponents argue that by protecting the network, miners are helping to strengthen the energy grid and reduce carbon emissions, and companies are increasingly moving to renewable energies.
Ethereum is approaching a major update that modifies its infrastructure and reduces energy usage by 99%. Ethereum developers will achieve this by switching from the PoW architecture to the PoS architecture. However, it is currently unknown when the shift will take place. Currently, Ethereum uses the PoW method.