{"id":6659,"date":"2017-12-30T07:39:58","date_gmt":"2017-12-30T02:09:58","guid":{"rendered":"http:\/\/www.allerin.com\/blog\/?p=6659"},"modified":"2017-12-29T15:56:16","modified_gmt":"2017-12-29T10:26:16","slug":"bitcoins-energy-footprint-is-it-time-to-rethink","status":"publish","type":"post","link":"https:\/\/www.allerin.com\/blog\/bitcoins-energy-footprint-is-it-time-to-rethink\/","title":{"rendered":"Bitcoin\u2019s energy footprint &#8211; Is it time to rethink?"},"content":{"rendered":"<p><a href=\"http:\/\/www.allerin.com\/wp-blog\/wp-content\/uploads\/2017\/12\/Bitcoin-is-energy-footprint-Is-it-time-to-rethink-2.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-6797\" src=\"http:\/\/www.allerin.com\/wp-blog\/wp-content\/uploads\/2017\/12\/Bitcoin-is-energy-footprint-Is-it-time-to-rethink-2.jpg\" alt=\"\" width=\"770\" height=\"513\" srcset=\"https:\/\/www.allerin.com\/blog\/wp-content\/uploads\/2017\/12\/Bitcoin-is-energy-footprint-Is-it-time-to-rethink-2.jpg 770w, https:\/\/www.allerin.com\/blog\/wp-content\/uploads\/2017\/12\/Bitcoin-is-energy-footprint-Is-it-time-to-rethink-2-300x200.jpg 300w, https:\/\/www.allerin.com\/blog\/wp-content\/uploads\/2017\/12\/Bitcoin-is-energy-footprint-Is-it-time-to-rethink-2-768x512.jpg 768w\" sizes=\"auto, (max-width: 770px) 100vw, 770px\" \/><\/a><\/p>\n<p>Bitcoin prices continue to fluctuate haphazardly around the $10,000 mark after rising exponentially in the last few months. But amidst the buzz around bitcoin\u2019s value, there is also another aspect related to it that is escalating \u2013 bitcoin\u2019s energy usage. The Guardian reported that <a href=\"https:\/\/www.theguardian.com\/technology\/2017\/nov\/27\/bitcoin-mining-consumes-electricity-ireland\" target=\"_blank\" rel=\"noopener\">bitcoin mining now consumes more power<\/a> in a year than Ireland. Digiconomist also assessed <a href=\"https:\/\/digiconomist.net\/bitcoin-energy-consumption\" target=\"_blank\" rel=\"noopener\">the power usage of the bitcoin network<\/a> to be 30.9 TWh a year, which is higher than that of 19 European countries. The mounting power consumption of bitcoin mining is creating speculation over the sustainability of cryptocurrencies and blockchains. We further explore causes of the rise in bitcoin energy footprint and discuss possible solutions to make bitcoin greener.<\/p>\n<p><a href=\"http:\/\/www.allerin.com\/wp-blog\/wp-content\/uploads\/2017\/12\/Bitcoin-is-energy-footprint-Is-it-time-to-rethink-1.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-6760 size-full\" src=\"http:\/\/www.allerin.com\/wp-blog\/wp-content\/uploads\/2017\/12\/Bitcoin-is-energy-footprint-Is-it-time-to-rethink-1.jpg\" alt=\"\" width=\"842\" height=\"519\" srcset=\"https:\/\/www.allerin.com\/blog\/wp-content\/uploads\/2017\/12\/Bitcoin-is-energy-footprint-Is-it-time-to-rethink-1.jpg 842w, https:\/\/www.allerin.com\/blog\/wp-content\/uploads\/2017\/12\/Bitcoin-is-energy-footprint-Is-it-time-to-rethink-1-300x185.jpg 300w, https:\/\/www.allerin.com\/blog\/wp-content\/uploads\/2017\/12\/Bitcoin-is-energy-footprint-Is-it-time-to-rethink-1-768x473.jpg 768w\" sizes=\"auto, (max-width: 842px) 100vw, 842px\" \/><\/a><\/p>\n<h1>Why does Bitcoin Mining Consume So Much Energy?<\/h1>\n<p>Bitcoin mining requires blockchain nodes to solve complex mathematical problems, called blocks, to verify the legitimacy of a bitcoin transaction. This verification is carried out by <a href=\"https:\/\/www.coindesk.com\/bitcoin-hash-functions-explained\/\" target=\"_blank\" rel=\"noopener\">inverse hashing<\/a>, which requires immense computational power, on <a href=\"https:\/\/en.bitcoin.it\/wiki\/ASIC\" target=\"_blank\" rel=\"noopener\">Application-Specific-Integrated-Circuits<\/a> or ASCI machines. \u2018Miners\u2019 who successfully solve a block first are rewarded with bitcoins. This system of reward has created a race of dominion among miners who keep upgrading to \u2018power-hungry\u2019 hardware to solve the blocks before other miners. These \u2018mines\u2019 are essentially enormous humming data centers in countries that offer cheap power, like <a href=\"https:\/\/oilprice.com\/Alternative-Energy\/Renewable-Energy\/Reducing-Bitcoins-Carbon-Footprint.html\" target=\"_blank\" rel=\"noopener\">China, that accounts for more than 70% of global bitcoin mining.<\/a> This is more of a concern because the energy in the Xinjiang province of China, where mines are aplenty, is primarily produced by fossil fuel based plants. This imposes an even more damaging cost on the environment.<\/p>\n<h1>How can we Reduce Bitcoin\u2019s Energy Consumption?<\/h1>\n<p>The current protocol for verifying the legitimacy of a bitcoin transaction is called <a href=\"https:\/\/en.bitcoin.it\/wiki\/Proof_of_work\" target=\"_blank\" rel=\"noopener\">Proof-of-Work<\/a> (PoW) that mandates mining through complex mathematical problems. The power intensive process of mining contributes the most towards bitcoin energy that we are looking to cut. Some major cryptocurrencies like Ethereum are now testing an alternate protocol called <a href=\"https:\/\/en.bitcoin.it\/wiki\/Proof_of_Stake\" target=\"_blank\" rel=\"noopener\">Proof-of-Stake<\/a> (PoS), that was pioneered by Peercoin, in the hope of reducing bitcoin energy. Estimates quote PoS to be a thousand times more cost-effective than PoW. Apart from PoS, Bitcoin\u2019s developers have developed a \u2018<a href=\"https:\/\/en.wikipedia.org\/wiki\/Lightning_Network\" target=\"_blank\" rel=\"noopener\">Lightning Network<\/a>\u2019 to conduct more transactions while computing less hashes.<\/p>\n<h1>Proof-of-Work Vs. Proof-of-Stake<\/h1>\n<p>So, how is PoS so much more efficient than PoW? PoS, like PoW, is still a protocol to authenticate transactions. However, unlike PoW, which creates a race among miners to create new blocks and rewards them with cryptocurrencies, PoS allots blocks to blockchain nodes called \u2018forgers\u2019 in a definite way on the basis of its wealth or \u2018stake\u2019. This eliminates the rat-race to get the block reward. Instead, \u2018forgers\u2019 take transaction fees for every transaction.<\/p>\n<h1>Lightning Network<\/h1>\n<p>Bitcoin\u2019s developers are aware of increasing bitcoin energy. Developers like Joseph Poon and Thaddeus Dryja have conceived the \u2018<a href=\"https:\/\/medium.com\/@AudunGulbrands1\/lightning-faq-67bd2b957d70\" target=\"_blank\" rel=\"noopener\">Lightning Network<\/a>\u2019. The Lightning Network is open source like the bitcoin code so anyone can download it, use it, or be a node. Its essence lies in carrying out multiple transactions between counterparties instantly and then verifying all of them at once before adding them to existing blockchain, thereby reducing the hashing workload.<\/p>\n<p>In conclusion, the bitcoin and the blockchain are facing challenges as they grow, but these hurdles are being taken care of by stakeholders and are no reason to raise speculation about their sustainability. The <a href=\"https:\/\/www.allerin.com\/blog\/the-blockchain-is-transforming-our-society-and-economy-heres-how\" target=\"_blank\" rel=\"noopener\">blockchain technology<\/a> has, undoubtedly, quite an endless potential to reform our current system of information exchange from wire transfers to file sharing. We should encourage its development, instead of shunning it for concerns that can be resolved.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin prices continue to fluctuate haphazardly around the $10,000 mark after rising exponentially in the last few months. But amidst the buzz around bitcoin\u2019s value, there is also another aspect&#8230;<\/p>\n","protected":false},"author":1,"featured_media":6797,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[171,3],"tags":[496],"class_list":["post-6659","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain","category-technology","tag-bitcoins-energy"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.5 (Yoast SEO v27.6) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Bitcoin\u2019s energy footprint - Is it time to rethink? | Blockchain |<\/title>\n<meta name=\"description\" content=\"Energy consumed by the bitcoin network, also referred to as bitcoin energy, has reached alarming levels. The drastic rise in bitcoin\u2019s energy consumption\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.allerin.com\/blog\/bitcoins-energy-footprint-is-it-time-to-rethink\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bitcoin\u2019s energy footprint - Is it time to rethink?\" \/>\n<meta property=\"og:description\" content=\"Bitcoin prices continue to fluctuate haphazardly around the $10,000 mark after rising exponentially in the last few months. But amidst the buzz around\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.allerin.com\/blog\/bitcoins-energy-footprint-is-it-time-to-rethink\/\" \/>\n<meta property=\"og:site_name\" content=\"Artificial Intelligence, ROBOTICS, AUTOMATION\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/allerintech\" \/>\n<meta property=\"article:published_time\" content=\"2017-12-30T02:09:58+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.allerin.com\/wp-blog\/wp-content\/uploads\/2017\/12\/Bitcoin-is-energy-footprint-Is-it-time-to-rethink-2.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"770\" \/>\n\t<meta property=\"og:image:height\" content=\"513\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Naveen Joshi\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@joshinav\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Naveen Joshi\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.allerin.com\\\/blog\\\/bitcoins-energy-footprint-is-it-time-to-rethink\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.allerin.com\\\/blog\\\/bitcoins-energy-footprint-is-it-time-to-rethink\\\/\"},\"author\":{\"name\":\"Naveen Joshi\",\"@id\":\"https:\\\/\\\/www.allerin.com\\\/blog\\\/#\\\/schema\\\/person\\\/d01e43be365179dae3ff572b2007c64e\"},\"headline\":\"Bitcoin\u2019s energy footprint &#8211; Is it time to rethink?\",\"datePublished\":\"2017-12-30T02:09:58+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.allerin.com\\\/blog\\\/bitcoins-energy-footprint-is-it-time-to-rethink\\\/\"},\"wordCount\":596,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\\\/\\\/www.allerin.com\\\/blog\\\/#organization\"},\"image\":{\"@id\":\"https:\\\/\\\/www.allerin.com\\\/blog\\\/bitcoins-energy-footprint-is-it-time-to-rethink\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.allerin.com\\\/blog\\\/wp-content\\\/uploads\\\/2017\\\/12\\\/Bitcoin-is-energy-footprint-Is-it-time-to-rethink-2.jpg\",\"keywords\":[\"bitcoin's energy\"],\"articleSection\":[\"Blockchain\",\"Technology\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.allerin.com\\\/blog\\\/bitcoins-energy-footprint-is-it-time-to-rethink\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.allerin.com\\\/blog\\\/bitcoins-energy-footprint-is-it-time-to-rethink\\\/\",\"url\":\"https:\\\/\\\/www.allerin.com\\\/blog\\\/bitcoins-energy-footprint-is-it-time-to-rethink\\\/\",\"name\":\"Bitcoin\u2019s energy footprint - Is it time to rethink? | Blockchain |\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.allerin.com\\\/blog\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.allerin.com\\\/blog\\\/bitcoins-energy-footprint-is-it-time-to-rethink\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.allerin.com\\\/blog\\\/bitcoins-energy-footprint-is-it-time-to-rethink\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.allerin.com\\\/blog\\\/wp-content\\\/uploads\\\/2017\\\/12\\\/Bitcoin-is-energy-footprint-Is-it-time-to-rethink-2.jpg\",\"datePublished\":\"2017-12-30T02:09:58+00:00\",\"description\":\"Energy consumed by the bitcoin network, also referred to as bitcoin energy, has reached alarming levels. 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