ConsenSys, an Ethereum-software startup that helped develop the Merge, is unveiling the Ethereum Climate Platform (ECP) alongside 18 other companies at COP27’s UN Climate Change Global Innovation Hub.
The acronym UNFCCC stands for United Nations Framework Convention on Climate Change. COP27 is held in Sharm el-Sheikh, Egypt, from November 6 to November 18. The platform is designed for the Ethereum ecosystem and will seek to reduce the extra energy usage that the blockchain experienced prior to ConsenSys and the Merge event in September.
“The aim is to amass a lot of capital and invest it in technologies that can have a substantial beneficial impact,” ConsenSys founder and Ethereum blockchain co-creator Joseph Lubin said “I believe that this group will want to support projects that are not traditional, legacy technology projects, but do consider how systems are built.”
The Merge saw Ethereum switch from its old, energy-intensive PoW mechanism to proof-of-stake (PoS). Under PoW, miners competed to solve cryptographic challenges in order to add transactions to the digital ledger. Ethereum employs validators to approve and add blocks to the blockchain under PoS, which consumes less energy. Since the Merge, Ethereum’s energy consumption has decreased by 99.9%.
“The Merge raised the bar for climate mitigation throughout the whole corporate and financial sector to a new and extraordinarily high level.” It demonstrated that “ConsenSys can successfully push technology decisions that dramatically reduce carbon output via pure force of collective will,” Lubin said in a press statement.
Mining has been chastised by officials for causing environmental damage. In October, the European Commission stated that it was prepared to shut down crypto mining if Europe faced a severe energy crisis this winter. Furthermore, regulatory authorities like the European Union have advocated limiting PoW in the EU.
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