Mozilla, the company behind the Firefox internet browser, aims to please its environmentally conscious community by only accepting proof-of-stake (PoS) cryptocurrency donations. The company had frozen all crypto donations in January. But now, after a review to gauge community emotions and research cryptocurrency energy usage, the company has reopened them. Among the changes, the company said it will not accept proof-of-work (PoW) cryptocurrencies, which require more energy. This means that crypto donations such as Bitcoin, Ethereum, Litecoin, Dogecoin and others are not accepted.
PoW coins are energy inefficient as they require advanced technology and mining equipment to function. These mining centers then emit large amounts of carbon dioxide, which has a negative impact on the environment.
In a blog post, the company updated its donation policy. The changes include: “Mozilla will no longer accept proof-of-work cryptocurrencies, which are more energy-intensive. Mozilla will no longer accept proof-of-stake cryptocurrencies, which are less energy-intensive. developing and sharing a list of cryptocurrencies that we accept in the second quarter of 2022.”
Mozilla pledged in January 2021 to drastically reduce its greenhouse gas footprint year after year, aiming to exceed the target of the Paris climate agreement. The first change to the company’s donation policy was aimed at complying with that.
The company said its decision to decline PoW donations ensured that its fundraising efforts were aligned with its carbon reduction goals.
By refusing all non-PoS cryptos, Mozilla effectively blocks both Bitcoin and Ether.
According to data from blockchain researchers at Digiconomist, Bitcoin consumes approximately 204.5 Terawatt hours (TWh) of energy annually. However, the actual impact on the climate is much more debatable. Proponents argue that by securing the grid, miners will help strengthen energy networks and reduce CO2 emissions, and companies are increasingly switching to renewable energy.
Ethereum is approaching a major update that would change its infrastructure and reduce power consumption by 99 percent. Ethereum developers plan to achieve this by switching from PoW to PoS architecture. However, it is currently unknown when the shift will take place. Currently, Ethereum uses the PoW method.