Toronto-based Tokens.com Corp publishes a letter to shareholders regarding its near zero-energy consumption business model.
The letter started off by saying that its management team has been operating in the blockchain and capital markets for many years, mentioning its executive roles at companies like Hut 8, Goldman Sachs, Galaxy Digital and Fidelity. The company added that this letter is the first part of this series, specifically discussing energy consumption in the crypto space and how it carries out its business with near-zero energy consumption.
Mining Cryptocurrency is an Energy-Intensive Business. But it doesn’t have to be.
Blockchain technology allows peer-to-peer transactions to happen without a centralized authority. In lieu of a centralized point of authority, outside parties perform the work that enables such transactions. These outside parties are then rewarded via payments in cryptocurrencies.
As an outside party, Tokens.com uses Blockchain technology to process and validate transactions for digital assets. The networks rely on providers like Tokens.com to enhance the reliability of their platforms and to ensure that the transactions are added to the Blockchain, since all of the authorities and banks in a Blockchain are decentralized.
Tokens accumulates additional digital assets by being rewarded for enforcing the rules of the network and ensures that the transfer is completed successfully and added to the blockchain.
Staking Accomplishes More While Consuming Less.
The limitation of traditional crypto mining technology is that it cannot process many transactions per second and uses a huge amount of specialized hardware and energy consumption.
Tokens.com uses a cutting-edge and energy-efficient process to validate crypto transactions called Proof-of-Stake or Staking. It performs the same work as a crypto miner in a more energy-saving and environmentally friendly way.
Staking is estimated to consume only 0.05% energy compared to crypto mining and it can process more transactions per second a lot faster — eliminating the bottlenecks caused by the limited throughput of crypto mining.
We are capturing a larger slice of the pie and the size of the pie is growing.
Tokens.com believes that their model is one-of-a-kind. Investors can reap the same rewards and compensation as any investors in a crypto miner, as well as the exposure to the digital assets Tokens buy and use as tools for Staking.
Tokens believes that its model offers their investors some additional benefits that miners could not provide — all done in an environmentally-friendly way.