Wed 03 Jul 2024
3
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In a proactive move, the Cardano Foundation, in collaboration with the Crypto Carbon Ratings Institute (CCRI), published sustainability indicators for the Cardano network. This ensures compliance with the upcoming MiCA regulations in the EU. This initiative highlights Cardano’s energy-efficient consensus protocol and underscores its commitment to a sustainable and transparent approach to cryptocurrency.
Indicators Ahead of MiCA Regulation
The report published by the Cardano Foundation and CCRI reveals that the crypto network operates on a consensus protocol. This protocol consumes significantly less electricity than proof-of-work (PoW) protocols. As of May 2024, the network’s total annual electrical consumption was 704.91 MWh. A figure well below that of PoW-based networks like Bitcoin.
Cardano’s sustainability indicators comply with the regulatory technical standards (RTS) proposed by ESMA under the MiCA framework. These indicators cover energy use and greenhouse gas emissions, as well as waste production and the use of natural resources.
Implications for the Crypto Industry
The Cardano Foundation has taken the lead in complying with MiCA sustainability indicators six months before the regulatory deadline. It thus establishes a new standard for the industry within the European Union. Frederik Gregaard, CEO of the Cardano Foundation, stated that this initiative aims to ensure adherence to upcoming EU regulations and set a benchmark for the crypto industry.
Cardano’s initiative is a demonstration of how blockchain networks can address ESG concerns! Particularly environmental impact, while maintaining transparency and efficiency. With the MiCA regulations coming into effect in December, affecting crypto asset service providers, ecosystems such as Cardano will be impacted.
The Cardano Foundation and CCRI have taken a significant step towards sustainability and regulatory compliance. This positions Cardano as a leader in adopting responsible and transparent practices. This could well encourage broader adoption of blockchain technology in a sustainable manner! Thus reinforcing the trust of regulators, investors, and users in the crypto industry.
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Le monde évolue et l’adaptation est la meilleure arme pour survivre dans cet univers ondoyant. Community manager crypto à la base, je m’intéresse à tout ce qui touche de près ou de loin à la blockchain et ses dérivés. Dans l’optique de partager mon expérience et de faire connaître un domaine qui me passionne, rien de mieux que de rédiger des articles informatifs et décontractés à la fois.
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