Yahya 
Rewarding Green Miners for Environmental Sustainability
The concept is outlined in a blog post from April 22 and proposes the use of “cryptoeconomic incentives” to make miners switch to sustainability. This development represents the dedication of PayPal to promote green solutions in the ecosystem of cryptocurrency.
In the proposed system, miners who use renewable energy would be called ″green miners″ and get payback with unique green keys that would be assigned to their public keys. Such green miners would then be treated with privilege with these privileges coming in the form of lower transaction fees and the incentivized locked BTC reward.
Under the initiative rationale, PayPal BRG explained, “Green miners will be incentivized to mine these transactions since they will be the only ones eligible for the additional ‘locked’ BTC reward.” This mechanism seeks to balance miners’ profit motives with environmental sustainability objectives.
Innovative Approach by PayPal’s Blockchain Research Group
The designed solution makes use of Energy Web’s ‘Green Proofs for Bitcoin’ model, enabling miners to get a certification by clean energy consumption and grid impact scores. The green miners register and submit their green keys through this system thus turning them into participants in the incentive program.
In testing, PayPal BRG partnered with Bitcoin miner DMG Blockchain Solutions Inc. to assess the proposed solution. By issuing multiple low fee transactions broadcast, they noticed that green miners were more likely to approve these types of transactions, particularly during peak on-chain transaction periods.
However, PayPal BRG noted different alternatives like the Lightning Network or smart contracts, the focus in their solution was on decentralization, easiness of implementation, and trust independence. This emphasizes their dedication to the preservation of the integrity and security of the Bitcoin network.
In summary, the innovative proposal of PayPal BRG is a large step toward the promotion of the sustainability in the cryptocurrency industry. By rewarding green mining practices, they seek to bring about conversations and creativity while addressing the environmental issues related to Bitcoin mining.