PayPal research proposes greener bitcoin mining

An internal research group at PayPal released a report late Monday on how economic incentives could spur bitcoin miners to use cleaner energy.

Bitcoin’s proof-of-work consensus mechanism has drawn criticism from environmental groups and legislators for being computationally intensive. The PayPal report suggests solving this problem by stashing extra bitcoin rewards in certain transactions for miners using low-carbon energy sources. 

Bitcoin miners are paid with bitcoin for their computational labor under PoW, and PayPal’s report would shuttle a little extra bitcoin to environmentally conscious miners.

Read more: This Bitcoin halving cycle, miners need a new energy strategy


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