ZUG, Switzerland, Wednesday, July 15, 2024 – The Cardano Foundation announced today it has fulfilled European Union (EU) regulatory requirements with the release of a new sustainability report for the Cardano blockchain network.
This report aligns with the block’s Markets in Crypto-Assets (MiCA) framework, which establishes a regulatory framework for cryptocurrency activities within the EU.
Developed in collaboration with the Crypto Carbon Ratings Institute (CCRI), the report provides a comprehensive assessment of the Cardano network’s environmental impact. Key metrics include annualized electricity consumption, carbon footprint, and waste generation associated with network operations.
CCRI report can be read here.
The report underscores the energy efficiency of the Cardano network compared to proof-of-work (PoW) protocols like Bitcoin. Cardano utilizes a proof-of-stake (PoS) consensus mechanism, which significantly reduces the computational power required for transaction validation and network security. As a result, the Cardano network’s annualized electricity consumption is estimated at 704.91 megawatt-hours (MWh), a stark contrast to the energy-intensive nature of PoW networks.
The Cardano Foundation said it gives importance to its commitment to transparency and environmental responsibility.
The report acknowledges the nascent stage of sustainability reporting within the cryptocurrency industry and highlights its role as a potential benchmark for other blockchain projects.
While meeting MiCA’s initial requirements, the report also identifies areas for further improvement.
The carbon intensity of the network’s electricity consumption is noted as a focus for future efforts, with a goal of increasing reliance on renewable energy sources.
