Wednesday, July 3, 2024
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As a proactive initiative, the Cardano Foundation, in collaboration with the Crypto Carbon Ratings Institute (CCRI), has published sustainability metrics for the Cardano network, ensuring compliance with the EU's upcoming MiCA regulations. 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 regulations
According to a report published by the Cardano Foundation and CCRI, the crypto network runs on a consensus protocol that consumes significantly less electricity than Proof-of-Work (PoW) protocols. As of May 2024, the network's total annual electricity consumption is 704.91 MWh, which is much lower than PoW-based networks such as Bitcoin.
Cardano's sustainability indicators are aligned with the Regulatory Technical Standards (RTS) proposed by ESMA based on the MiCA framework. These indicators cover energy use and greenhouse gas emissions, waste generation, and natural resource use.
Impact on the cryptocurrency industry
The Cardano Foundation led the effort to comply with the MiCA sustainability metrics six months ahead of the regulatory deadline, establishing a new standard for the industry within the European Union. Frederik Gregord, CEO of the Cardano Foundation, said the initiative is aimed at ensuring compliance with upcoming EU regulations and setting a benchmark for the cryptocurrency industry.
Cardano's efforts demonstrate how blockchain networks can address ESG concerns, particularly addressing environmental impact while remaining transparent and efficient. The MiCA regulation, which comes into force in December, will impact crypto asset service providers and therefore ecosystems such as Cardano.
The Cardano Foundation and CCRI have taken a major step towards sustainability and regulatory compliance, positioning Cardano as a leader in adopting responsible and transparent practices, which may foster broader adoption of blockchain technology in a sustainable manner, strengthening regulators', investors' and users' trust in the cryptocurrency industry.
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Evolving and adapting to the world is the best weapon to survive in this world. Cryptocurrency Community Manager. Interested in Blockchain and all its derivatives. Sharing my experience has allowed me to know the area I am passionate about and to compile and digitize information.
Disclaimer
The views, thoughts and opinions expressed in this article are those of the author and should not be taken as investment advice. Please conduct your own research before making any investment decisions.
