The amount of energy used by blockchain networks has many environmentalists worried. For the longest time, Bitcoin (BTC/USD) has come under heavy criticism for consuming high amounts of energy through the proof-of-work mining process.
A crypto researcher has now come out to classify blockchain networks and the amount of energy they consume.
Polkadot consumes the least energy
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The Crypto Carbon Ratings Institute researchers noted that the Polkadot network consumed the least amount of energy overall. Its annual carbon emissions were also much lower compared to other proof-of-stake blockchains included in the study.
The research also noted that the Cardano blockchain used the lowest energy per node annually. Solana (SOL/USD) was also eco-friendly, as its network consumed the least energy per transaction.
The research also focused on Avalanche (AVAX/USD), one of the rapidly growing blockchains in the crypto space. It assessed the economic value of this blockchain in terms of the value derived from its application. In the case of Avalanche, this metric came in at $18,454 per kilowatt-hour. Solana recorded $4,395 per kilowatt-hour, while Polkadot reported $19.18.
Proof-of-stake consumed less energy
The report also argues that proof-of-stake networks could consume even lower amounts of energy than what was reported in the research.
“For practitioners selecting a PoS blockchain protocol, other factors such as decentralization, network throughput or functionality (e.g. smart contracts) should increase in relevance as decision criteria.”
The data shows that PoS models consume less energy than PoW models. Bitcoin uses a PoW consensus, and it has been under heavy criticism for the large amounts of energy used, with some stating that the Bitcoin mining process consumes more energy than the Netherlands. PoW models need computational power to solve mining puzzles and secure the network.
The issue of Bitcoin mining has attracted the attention of many people, including Elon Musk. Governments have also raised the alarm over the rise in mining activities. Recently, Europe recommended a ban on proof-of-work crypto mining.
The Ethereum network is currently running on a proof-of-work consensus. However, the network is planning to transition into a PoS consensus. According to the CCRI research, PoS networks consumed less than 0.001% of the energy consumed by the Bitcoin network.
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