A look at Paypal's recent proposal to implement Bitcoin wallets that pay mining fees using a scheme ensuring that only authorized miners powered by renewable energy can collect the user's transaction fee.
in partnership with Energy Web and DMG Blockchain Solutions, describing a “ Green Mining Initiative ” intended to redirect fees from participating users specifically to certified miners powering their operations with renewable energy. I can’t say I’m surprised by this honestly, mining has at this point become very normalized in terms of its use to further renewable energy or climate goals.
This key certification is at the root of what enables ensuring only the correct miners can claim a fee. Compliant users’ wallets can query or be provided with a list of all certified miners bitcoin addresses, and from there have the information needed to create a special transaction that only they can claim the fee for. The trick is a multisig output.
A Bitcoin transaction pays fees based on the amount of space it takes up in terms of data. By introducing the need for miners to take up blockspace creating a secondary transaction collecting this “green fee” they are economically speaking increasing the size of the green transaction itself. This is very similar in practice to Child-Pays-For-Parent from an economic perspective.
In a vacuum this dynamic guarantees that either compliant users have to overpay, or certified miners wind up actually making less revenue all things equal. The former is irrational from a consumer point of view, and the latter completely fails to achieve the goal of rewarding miners using renewables extra revenue.
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Mining of materials needed for ‘green revolution’ puts great ape population at riskLaura is a science news writer, covering a wide variety of subjects, but she is particularly fascinated by all things aquatic, paleontology, nanotechnology, and exploring how science influences daily life. Laura is a proud former resident of the New Jersey shore, a competitive swimmer, and a fierce defender of the Oxford comma.
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