With the rise of crypto finance — which, in large part, can be attributed to the rise of the DeFi market — it seems as though investors across the globe are fast-moving in a direction that is quite environmentally conscious and holistic in its general outlook. In this regard, one need only look at Elon Musk’s recent move to stop accepting Bitcoin as payment for Tesla’s various automotive offerings in light of the flagship crypto’s high energy consumption.
And while the move caused much uproar within the global crypto community, with many calling Musk a market manipulator, it did shine a spotlight on the adverse environmental impact of the crypto mining industry. Especially currencies making use of the PoW (Proof of Work) consensus model which is notorious for its intensive power requirements.
The Environmental, Social & Governance (ESG) Impact
There’s no denying that the influence of human industrial activities (over the last half odd century) have had an unequivocally negative impact on the environment, so much so that a mountain of data now quite clearly suggests that if major changes are not made in terms of how most markets function today — especially in terms of their use of fossil fuel use — the effects on the planet will be catastrophic. To put things into perspective, over the last century and a half, the Earth’s mean sea level has risen by a whopping 8–9 inches (21–24 centimeters), with a third of this rise taking place over the last 25 years alone.
This is the reason why ESG investments and business practices have started to gain an increasing amount of mainstream traction today. Especially amongst newer investors who are more environmentally and socially conscious in their approach towards business. In fact, a whole lot of people are now using ESG principles as important measuring tools when deciding where to invest their money since they see a lot of potential within this space.
That said, while on paper everything sounds fine and dandy, ESG reporting does come with its own set of limitations. However, these issues, can, in large part, be addressed through the use of blockchain-based decentralized ledgers.
Telos has led the way in this regard, marrying the world of blockchain with that of ESG, thus allowing investors to expand their economic horizons with ease.
Telos’ ESG initiative is a game-changer. Here’s Why.
In its most basic sense, Telos can be thought of as a blockchain platform that is not only fast, efficient but also offers users near-free transactions. However, that’s not all, what really makes the project stand out is that it is designed to help alleviate a wide range of environmental issues that have kept the blockchain sector from maturing to its fullest potential.
To elaborate on this point, statistical data quite clearly shows that Telos’ power consumption ratio is substantially lower than all of its closest competitors including Bitcoin, Ripple, Cardano, Eth 2.0. For example, while Bitcoin and Ripple consume 128 TWh/year and 0.4 TWh/year of power respectively, the Telos network only needs a meager 0.0004 TWh/year to facilitate its day-to-day operations.
From a governance standpoint, Telos has been designed using a protocol referred to as Delegated Proof of Stake (DPoS), which, simply put, allows users to vote and choose their network validators — i.e. members who are assigned the responsibility of bolstering the security and reliability of their particular ecosystem.
In terms of its Telos’ social outlook, the firm has entered into partnerships with a number of firms supporting a wide range of women and LGBTQIA+ issues. For example, the company recently tied up with Lips so as to help various neglected communities gain a stronger presence across the global social media market.
There’s no turning back at this point
With businesses becoming more environmentally conscious, it stands to reason that in the near future, more and more companies across the globe will adopt environmental, social, and governance (ESG) related strategies to not only help maximize their profits but also help the environment heal from a century of incessant damage and abuse.
Lastly, it bears mentioning that studies released over the last couple of years quite clearly point to the fact that many mainstream financial entities are now beginning to see the potential of this niche market, suggesting that this space is primed to grow quite rapidly in the coming few years. Thus, it will be interesting to see how things play out from here on end.