The blockchain has many advantages. With it, companies can track paperwork, assets, and other data in real time. Users can also build decentralized applications and trade tokens.
The downside, however, lies in the amount of energy and computer power used in generating the coins. Just a few years ago, Bitcoin miners used 982 megawatt hours in a 24-period. According to the Bloomberg, that’s enough to power 31,000 homes. Now, with the addition of multiple different blockchains, the amount of energy used has not decreased. This affects miners, both pools and individuals, who constantly run their computers and run up their electricity bill.
While the majority of blockchains use “proof-of-work” (PoW), EcoChain will use “proof-of-stake” (PoS) as their mining protocol. Unlike PoW where the users must present their computing power for verification, PoS requires a certain amount of ownership for specific coins.
Ledger Assets is already working with another startup, Power Ledger, which focuses on peer-to-peer trading using solar power. The Perth-based company aims to use solar power as well as PoS to reduce the use of energy, as well as increase transaction confirmations. The company claims their blockchain generates one block per minute using this protocol.
EcoChain is a permissioned, or private, blockchain designed to work with only Australian businesses. Currently, the blockchain has around 30 nodes but hopes to build their clientele by expanding their platform for personal use.