MATIC takes a big leap as carbon emissions data emerges. Will green cryptocurrencies lead the market?
- MATIC is growing rapidly after the Polygon network announced that it is officially carbon neutral.
- The US government is currently working on regulations on energy consumption and greenhouse gas emissions from cryptocurrency trading.
- If government regulation restricts blockchains that cannot reduce their energy consumption and carbon emissions, blockchains that can will likely gain an advantage.
In today’s crypto news, MATIC, the native token of the Polygon blockchain, saw a huge surge after news of the blockchain’s carbon neutrality. With so many blockchains struggling to reduce their energy consumption and carbon emissions, Polygon has taken a big step towards making cryptocurrencies renewable for the long term. What is Polygon doing right and how will this affect the rest of the market in the future?
The Polygon Blockchain
The Polygon blockchain is a platform that facilitates the Ethereum infrastructure for developers. With the Polygon SDK, developers can find an intuitive way to develop a variety of flexible applications. The Polygon blockchain also virtually transforms the Ethereum network by connecting it with other blockchains for interoperability. While many other chains have managed to connect blockchains to each other, this multi-chain network has the advantage that it can take advantage of all the resources of the Ethereum network. Payment for the use of this platform is made with MATIC, the digital currency of the block chain.
Carbon neutrality and Polygon
A big problem facing blockchains today is greenhouse gas emissions. The total power required to mine cryptocurrencies is immense, and all this energy that is burned also results in high levels of carbon emissions from the same processes. Polygon is setting itself apart from the rest of the market by achieving carbon neutral status. This means that the blockchain is absorbing as much carbon as it is producing. The US government is currently investigating blockchain technology and the environmental impacts of cryptocurrency processes. If the government decides to impose strict regulations on blockchain processes to reduce carbon emissions, Polygon may find itself ahead of the game as it will not be affected by these regulations as it is no longer harmful to the environment. Since the government is currently investigating this issue, Polygon’s carbon neutral status could even affect the outcome of the ongoing research and could serve to become a new standard for blockchain management in the future. If this happens, the value of MATIC is likely to skyrocket.
The bottom line
MATIC is on the rise as the Polygon blockchain announces its carbon neutral status to the world. By connecting resources from different blockchains to work interoperably with the Ethereum blockchain, Polygon has created a multi-chain network with many attractive benefits. By achieving carbon neutral status, this network adds to the benefits of the blockchain and ensures its longevity as regulation talks. As the US government comes to a conclusion on crypto emissions and the regulations it hopes to apply to blockchains, Polygon is sure to be a major consideration. With Polygon establishing itself as a neutral effect on the environment, MATIC could rise if future regulations prevent some blockchains from fully functioning.
Wondering what the difference is between all these different coins and tokens? Check out our guide on the different types of cryptocurrencies!
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