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TRACES OF THE
NEW GOLD RUSH
Group 03
Valentina Caiola, Davide Formenti,
Riccardo Fuccelli, Diego Morra,
Francesco Mugnaini, Andrea Pronzati.
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In 2008 Satoshi Nakamoto published the paper Bitcoin: A Peer-to-Peer Electronic Cash System anticipating the invention of a decentralized and totally transparent form of electronic cash, based on the blockchain structure. After Bitcoin, an increasing number of cryptocurrencies have come, but people are still not aware that there is a huge amount of complex mechanisms behind blockchain. Moreover, the environmental impact of cryptocurrencies is the real elephant in the room.
/ CRYPTOCURRENCY
AND BLOCKCHAIN
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The Blockchain system’s phases
- The main crypto-transaction system, called Blockchain, consists of a shared ledger organized in blocks. Each block contains a series of transactions protected by digital signatures and it’s validated through the resolution of a complex mathematical problem.

- Peer to peer networks, cryptographic hash function SHA 256 and Proof of work protocol garantee the security of the system.

- Miners listen to transactions, create blocks, broadcast blocks to other nodes and gain bitcoins in reward.

- As long as the majority of cpu power is controlled by nodes that are not cooperating to attack the network, they’ll generate the longest chain and neutralize attackers.
/ HOW MANY HOW MUCH
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Cryptocurrencies peak value in January 2018
- Currently, there are more than 900 cryptocurrencies around the world but technology and digital infrastructures are giving us enough power for developing different kinds of cryptocurrencies.

- The economic situation between 2017 and 2019 of all the crypto tokens shows us non classical variations in terms of market cap and nominal value due to the fragility of the system itself.

- To work as they should some cryptocurrencies (as the Bitcoin, for example) are “released” with a fixed amount, which decreases over time, by the system every validated block.
/ BITCOIN TRANSACTIONS
AND CARBON FOOTPRINTS
- In order to work perfectly, at every transaction the system gathers all the nodes of the network and produces a shocking amount of CO2.

- The most dangerous menace for the “real world” is the energy consumption per transaction. In fact, one transaction creates an average of 296kg of CO2 and is actually equivalent to 740,678 VISA transactions.

- Assuming that more or less 300.000 BTC transaction are verified everyday, is impossible not to notice that the global impact of this powerful democratic mechanism is extremely high.
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Bitcoin’s transactions and CO2 emissions
Datasets
Blockchain Dataset
Cryptocurrencies Value Dataset
CO2 Emission Dataset