Blockchain for a Better Planet: CEO Sunny Lu Explains How Vechain (VET) is Fighting the Climate Crisis – Next Big Trend?
As the crypto industry pushes the limits of blockchain, the constant pursuit of innovation and sustainability takes center stage, with various consensus mechanisms vying for the spotlight, among them, Proof of Authority (PoA), employed by Vechain, emerges as a growing alternative, challenging Ethereum’s widely acclaimed Proof of Stake (PoS) model.
I had the privilege of delving into these intricacies with Sunny Lu, the visionary CEO of Vechain, to unravel the potential and efficiency of PoA, and to explore how Vechain is redefining the standards of sustainable blockchain technology.
Demystifying PoS and PoA: The Energy Efficiency Conundrum
Ethereum’s transition to PoS has been amongst the most anticipated shifts in the crypto industry over the past two years, lauded for its promise of sustainability and energy efficiency. Yet, when pitted against Vechain’s PoA, it’s evident that there’s more to the story.
“One of the reasons for this is a lack of overall knowledge about the nuances of blockchain technologies and their underpinning architectures, but I expect to see understanding grow in the coming years as both education and adoption speed up,” explained Sunny.
“When compared to Bitcoin’s PoW mechanism, which gained notoriety for its energy consumption, PoS certainly is more energy efficient. However, that’s not to say it is optimized for energy efficiency; it is simply better than PoW in terms of overall energy consumption.
“In 2022, VechainThor was much more efficient than Bitcoin from an energy and carbon emissions perspective. VechainThor’s carbon emissions were on the order of 4.46 tons, whereas Bitcoin’s surpassed 86.3M tons,” continued Sunny.
“Despite Ethereum’s notable migration to PoS in 2022, the network is still projected to have annual carbon emissions of around 870 tons. Vechain’s carbon calculator tool also reveals that if all 408.5M transactions that occurred on Ethereum in 2022 had instead taken place on the VechainThor blockchain, 318 times less CO2 would have been emitted, bringing the number down from 8,824 tonnes to 27.3 tonnes”.
Vechain in Action: Driving Real-World Impact
$46k in prizes, 11 winning teams and a bespoke grant program launched to help project builders… pic.twitter.com/QMyS7VZCIi
— vechain (@vechainofficial) October 25, 2023
Beyond the theoretical debate, Vechain’s real-world applications have become a testament to its efficiency and efficacy.
“This dApp rewards users for choosing the electric mode in BYD’s hybrid electric vehicles, encouraging the use of electric vehicles and offering tangible rewards for sustainability,” explained Sunny.
Such innovations underscore Vechain’s commitment to leveraging blockchain for social good, aligning seamlessly with the burgeoning ‘Web3 for Better’ movement.
“The new ‘Web3 for Better’ whitepaper, co-developed with Boston Consulting Group (BCG), to promote sustainability-focused ecosystems that leverage tokens and gamification mechanics at their core to encourage and reward user behaviors.” added Sunny.
Our partner @teamseas is on tour to capture the impact of your donations – over $30m – on oceans and rivers.
— The Ocean Cleanup (@TheOceanCleanup) October 23, 2023
“Another tangible example is ReSea and Ocean Cleanup, two companies focused on plastic reclamation from the hydrosphere, they leverage blockchain to prove to the end users, whether individuals or sponsoring companies, that plastic was recovered from the oceans by hashing information such as weight, GPS data, time and date, etc., on the blockchain.
“By doing so, they can prove plastic was genuinely recovered and mitigate greenwashing concerns.”
How is Vechain Strategizing for a Sustainable Future?
With the increasing scrutiny from global regulators and environmental groups on the carbon impact of blockchain technologies, Vechain positions itself not just to comply but to lead the next evolution of sustainable blockchain tech.
“Together [with BCG], we’ve co-developed a framework that builds on real-world examples of blockchain usage for sustainability. Next year, we will be aiming to launch our first series of ecosystems across multiple industries that use this concept,” revealed Sunny.
Boston Consulting Group’s Guy Gilliland and Sunny Lu sit down for a Fireside Chat at Money20/20 today to discuss a shared vision for the future of #blockchain-powered business ecosystems, and how they'll drive a #sustainability revolution.
This new world has tokenisation at its… pic.twitter.com/Pv1EzQ1AB6
— vechain (@vechainofficial) October 24, 2023
“These collaborations aim to utilize blockchain technology to track and verify the authenticity of green products, reduce carbon emissions, and promote sustainable practices.
“We continue to set precedence by voluntarily auditing our own network through an internationally recognized organization that validated the energy consumption of our blockchain.
“Our precedence, various collaborations at government level, and close relations with some of the most well-reputed drivers of adoption, including PwC, DNV, and BCG, place vechain in a unique, and very promising position to lead the sustainability revolution.”
Vechain’s Clarion Call for Informed and Sustainable Blockchain Adoption
As the world faces down the reality of an impending climate crisis, it is imperative that technology undertakes a rapid evolution towards sustainable practices.
This leaves the emerging blockchain and crypto industries at an unprecedented crossroads, where efficiency and environmental consciousness are no longer just options, but now represent the key to humanity’s progress going forward.
“We’re acutely aware of the environmental concerns associated with blockchain technologies. Again, this has been an important guiding philosophy throughout our development thus far,” said Sunny.
“By educating businesses, developers, and the general public, we aim to foster a more informed and responsible approach to blockchain adoption”.
With the industry stood on the brink of a new epoch in digital transformation, VeChain’s journey—marked by resilience, innovation, and an unyielding dedication to sustainability—shines brightly, serving as a beacon for the industry and technological evolution more broadly.