As the debate over the energy consumption of various cryptocurrency blockchains intensifies, a new report now shows how various top blockchain networks relate in terms of power consumption.
According to a recent report by Ulrich Gallersdörfer, Lena Klaaßen and Christian Stoll of the cryptocurrency Carbon Ratings Institute, Polkadot tops the list of six other proof-of-stake (POS) blockchains with the lowest power consumption and carbon emissions compared to top of the list. year.
On the other hand, Cardano becomes the network with the lowest energy consumption per node per year, while Solana is the blockchain with the lowest power consumption per transaction.
The report also assesses the economic value associated with its power consumption on the POS network. Polkadot was again the greenest network at US$19.18 (RM80.20) per kWh, while Solana was priced at US$4,395 (RM18,377). Avalanche is the most expensive at US$18,454 (RM77,165) per kWh.
Bitcoin, on the other hand, remains a major concern for various entities who consider its carbon footprint to be unsustainably high. Elon Musk, to name just a few, has been one of the biggest critics of the Bitcoin POW blockchain, insisting that Bitcoin mining must achieve more than 50% renewable energy usage to remain sustainable.
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A recent Coinshares report on Bitcoin's energy consumption shows that while Bitcoin's energy consumption remains low compared to the total annual global energy use, its energy consumption rate has been soaring.
According to the report, the Bitcoin network consumed 75 TWh of electricity in 2020, a figure that was as high as 93 TWh in November 2021. minimum energy usage in July 2021 was 54 TWh as Chinese miners shut down operations after the government banned cryptocurrency mining.
However, the report dismisses concerns about Bitcoin's environmental impact, citing the negligible threat of mining the cryptocurrency for a pause. The asset currently accounts for 0.8% of total annual global carbon dioxide (CO2) emissions, compared to its total global energy consumption of 0.05%.
"This gives us the impression that the cost of the global monetary system is small, while on the global energy balance sheet it amounts to a rounding error."
That said, a recent report from the Bitcoin Mining Council shows that 46% of cryptocurrency miners are using efficient mining methods and therefore have been working to improve Bitcoin's carbon footprint. With Ether expected to transition to a POS network by the end of the year, experts believe this will go a long way toward achieving a carbon-free mining environment for cryptocurrencies.