Electroneum Reaps Benefit of Eco-Mining Push: ETN Price Jumps 21%
Electroneum topped the cryptocurrency price charts on Saturday after a 21% surge returned ETN to the market cap top 100. The sudden surge comes fresh off the back of a hardfork which drastically reduces the energy consumption of ETN mining, introducing a mining protocol dubbed ‘Proof of Responsibility’.
Electroneum Successful Hardfork
The hardfork announced earlier in the week by Electroneum CEO Richard Ells went ahead successfully, giving ETN a unique niche in the crypto sphere. According to the documentation, the energy equivalent of 2.4 million light bulbs per day was used to mine the ETN coin. Following the change to ‘Proof of Responsibility’, the energy usage has been reduced to the equivalent of one light bulb:
“We developed a way to eliminate all these rigs and to reduce the rate of hashing millions of times, from over four Giga hashes, to under one half of a kilo hash. We concluded that it was time to stop destroying the environment and drastically reduce our carbon footprint.”
Exact details on how the new mining protocol works are slim, but numerous claims are made about its impact. The documentation claims Electroneum is now insusceptible to 51% attacks, and runs on one millionth of the electricity it had previously. The block reward has also been reduced by 75%, in line with the now reduced mining costs.
All of this harkens back to Electroneum’s original goal when it launched in 2017. The aim was to bring the cryptocurrency experience to mobile users. Reducing mining costs and hardware requirements appears to be in line with that original goal.
Making Good on the Socio-Political Stage
Despite Greenpeace’s objection to any venture which uses energy derived from fossil-fuels, the environmental activists actually accept Bitcoin donations on their website. But that hasn’t shaken their strident stance on crypto mining’s energy consumption.
Warning that Bitcoin’s ‘social license’ could be rescinded, Greenpeace were quoted as saying that Proof-of-Work would have to be changed for BTC to succeed:
“If Bitcoin and other cryptocurrencies hope to maintain their social license in a world that is increasingly driven to action by the Climate Emergency, not only must there be changes to the ‘Proof of Work’ model to make mining far less energy intensive, but mining must also be restricted to locations where mining is powered by renewable sources of electricity, and not driving new demand for fossil fuels.”
While the idea of a ‘Climate Emergency’ seems a bit strong, there’s no doubt Electroneum will now benefit from ‘good guy points’ as it seeks to onboard NGO (Non-Government Organisations) around the world.
Electroneum Price – ETN/USD
The value of ETN surged 21% on Saturday afternoon – from $0.005487 up to $0.006693. That returned Electroneum to the market cap top 100, where it and Ravencoin (RVN) surged amid a falling market.
ETN’s low volume on the day actually lends it some legitimacy, as the daily turnover jumped from $240,000 to $830,000, largely through markets on Huobi, and Kucoin – on which it gained a new USDT pairing.
Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock. Chart via CoinMarketCap.