Binance CEO tweets about the Cambridge Alt Fin study on Ethereum's energy use, showing a 99.9% decrease since the transition to Proof-of-Stake.
- The study shows a 99.9% reduction in energy consumption since Ethereum switched to PoS.
- Ethereum’s annual energy consumption is now only enough to power The University of Cambridge for 16 days.
Ethereum’s transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) has proven to be a resounding success, with a Cambridge Alt Fin study showing a 99.9% reduction in energy consumption. This milestone has garnered attention from industry leaders. Including Binance’s CEO, who has praised Ethereum’s efforts to create a more sustainable future for cryptocurrencies. In this article, we’ll explore the implications of this study and how it could pave the way for more energy-efficient blockchain networks.
Reducing Energy Consumption: Ethereum’s Successful Transition to Proof-of-Stake
According to data from Cambridge University’s Centre for Alternative Finance (CCAF), Ethereum had been consuming increasing amounts of energy since its launch until the “Merge” took place in September 2022. By then, its total energy consumption had reached 58.26 Terawatt hours (TWh). That equivalent to Switzerland’s annual electricity consumption during that period.
However, CCAF’s latest estimates reveal that this amount has now drastically decreased to just 6.6 gigawatt hours (GWh), comparable to the electricity used by 2,000 typical UK homes. This is a stark contrast to Bitcoin’s energy usage, which amounted to 143.9 TWh over the same period.
Ethereum’s successful switch has raised hopes of a more sustainable future for cryptocurrencies. But blockchain experts have dismissed the possibility of Bitcoin adopting the same system anytime soon. Alexander Neumüller, one of CCAF’s researchers, notes that Bitcoin’s proof-of-approach is deeply entrenched within its network and therefore difficult to change. Moreover, Ethan Vera, co-founder of Luxor Mining, adds that energy consumption is a crucial factor when it comes to bitcoin’s security and makes it unlikely for the network to consider such a change.
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