How Third Act’s Platform Outperforms Other Networks
The proliferation of cryptocurrencies in the past few years has been a mostly positive development. Low transaction fees and the safety of blockchain ledgers are objectively positive aspects associated with crypto.
The independent nature of cryptocurrency also means that, unlike with fiat currency, cryptos are free from the boom and bust cycles of banks that back traditional currencies. And because they are unconnected to traditional banks, they can be used by the unbanked and allow people to access lines of credit not normally be granted.
But just like anything, it’s not all positive. Not yet anyway. Chances are you’ve seen people talking about the environmental impact of cryptocurrency. But how can something that exists on the internet have an impact on the physical environment? The answer is a little confusing.
The reason why some specific cryptocurrencies, such as Bitcoin, are negatively impacting the environment is due to something called Bitcoin mining. In this case, mining doesn’t mean people rushing out to some creek to sift through the water with a pan. What it does mean is getting a bunch of high-powered computers together to solve high-level math problems.
And while the process of mining Bitcoin and other so-called “proof-of-work” cryptocurrencies may be confusing, the impact on the environment is easy to understand.
While the processes of physical and Bitcoin mining are different from one another, the way that they affect the world is actually sort of similar.
Think about it like coal mining. More demand for coal means more coal needs to be mined. This means that companies doing the mining are going to turn to more powerful ways of mining coal, using large machines that spit smog up into the air, for instance. And they’ll also mine a larger plot of land, disrupting any ecosystems on the land where that would be mine would go.
The same thing has happened to Bitcoin mining. Remember how in order to “mine” a Bitcoin you need a computer to solve a complex math problem? Well, it’s actually easier to get a bunch of computers and have them all working around the clock to solve those complicated equations. But these computers need power and a lot of it. This has created a race to find cheap (and unregulated) electricity in countries like China and Russia, which leads to greater carbon emissions, which leads to a severe impact on an already suffering environment.
But cryptocurrency isn’t going away. At least not any time soon. So, how do we reckon with the environmental impact of crypto while also shepherding the use of crypto for all those positive effects mentioned earlier?
The answer could be found in HBAR.
HBAR is an environmentally-friendly coin that belongs to the second generation of cryptos like Solana and Ethereum 2. These coins have taken a different approach to mining. Miners of these networks are accredited based on the size of their holdings multiplied by the duration of time that they’ve had accounts.
Basically, miners on Hedera’s network are compensated in proportion to their credibility. Because a miner has to establish a stake to prove their credentials these coins use something called “proof-of-stake.” And since the coins compensate miners based on stakes, less energy is used than proof-of-work cryptos which rely on solving those aforementioned math problems. This has led HBAR, and the ledger Hedera, to become an environmentally stable coin.
For Third Act, Hedera’s technology answered two important questions: how to make the best NFT marketplace for the environment? And how to keep NFT drops eco-friendly?
“Proof-of-stake networks, like Hedera, use 99% less energy compared to proof-of-work networks,” says Zachary Boyd, the lead developer at Third Act Digital. “As a marketplace for theatre NFTs, it was important for Third Act to find a coin that was not only stable but environmentally sustainable.” Hedera’s proof-of-stake alternative allowed Third Act to make the best NFT marketplace for the environment, sending out eco-friendly NFT drops to theatre fans everywhere.
All this might sound confusing (and frankly it sort of is). But take a look at the above table. Everything, even the swipe of a credit card, uses energy. And the use of HBAR takes a fraction of the amount of energy that a single swipe of a Visa uses.
And Hedera isn’t just sustainable, but actually a plus for the environment. They are committed to being a carbon-negative network by making quarterly purchases of carbon offsets.
So when thinking about the environmental impact of crypto, it’s important to remember that not all coins are created equal. When purchasing an NFT from Third Act (or simply browsing new NFT drops), you’re not just buying a slice of theatre history, but also taking advantage of a coin and technology that creates the best NFT marketplace for the environment.