Ethereum’s Transition to Proof-of-Stake Leads to a 99.99% Reduction in Energy Consumption
Crypto is no stranger to debates about energy consumption, and now the University of Cambridge has weighed in with a new tool to compare the sustainability of the two largest cryptocurrencies by market cap: Bitcoin and Ethereum. The Cambridge Blockchain Network Sustainability Index (CBNSI) explores the environmental implications of Ethereum’s transition from proof-of-work to proof-of-stake, with the latter allowing transactions to be verified by actors that have pledged tokens to a network, reducing energy consumption. According to CCAF research, Ethereum’s energy consumption plummeted by 99.99% after the merge. The tool also provides daily energy estimates for both Bitcoin and Ethereum, with Ethereum currently estimated to consume 5.8 gigawatt-hours annually compared to Bitcoin’s 132.2 terawatt-hours. However, the researchers noted that electricity consumption doesn’t fully capture blockchain networks’ carbon footprint.
Clever Robot News Desk 28th April 2023
