Cardano recently introduced new eco-friendly metrics to comply with the MiCA regulations in Europe. This move comes as the second phase of MiCA implementation for crypto asset providers is set to begin in six months. The goal is to ensure that crypto asset issuers and service providers disclose sustainability indicators, aligning with the requirements of the regulation.
In collaboration with the Crypto Carbon Ratings Institute (CCRI), the Cardano Foundation has gathered and analyzed data to create a report detailing the network’s sustainability indicators. One key highlight is Cardano’s use of an energy-efficient consensus protocol, which consumes significantly less energy compared to Proof-of-Work blockchains like Bitcoin. As of May 2024, the Cardano network has only consumed 704.91 MWh, translating to about 0.192 W per transaction per second (TPS).
The report also reveals Cardano’s annualized carbon footprint and the carbon intensity of its consumed electricity, which are 250.73 tCO2e and 356 gCO2 per kWh, respectively. These metrics are in line with the draft regulatory technical standards specified by the MiCA regulation, setting a benchmark for other blockchain networks to follow.
Frederik Gregaard, CEO of the Cardano Foundation, emphasized the importance of addressing sustainability in the crypto space. He believes that the partnership with CCRI will help Cardano meet MiCA’s stringent requirements and assist financial institutions in integrating sustainability into their digital asset offerings. Dr. Ulrich Gallersdörfer, CTO, and co-founder of CCRI also highlighted the significance of using scientific methodologies and real-world data to measure and manage the environmental impacts of blockchain networks.
This initiative by Cardano showcases a proactive approach towards sustainability in the crypto industry. By introducing eco-friendly metrics and aligning with regulatory standards, Cardano is not only setting an example for other blockchain networks but also contributing to a more sustainable future for the digital asset space. It will be interesting to see how other projects in the industry respond to these developments and whether they will follow suit in adopting similar sustainability practices.