This can be seen with the launch of Ethereum 2.0 and the move from a proof of work (PoW) consensus to a proof of stake model (PoS) allowing miners to mine and validate block transactions based on the amount of coins that they hold. Because PoS demands significantly lower hardware requirements than PoW, the energy needed to facilitate secure transactions will only continue to fall in the future. Some forecasting models show that Ethereum 2.0’s PoS model will be 99% more energy efficient than PoW models.

We are already seeing the results of what we can expect from PoS, with the Ethereum network consuming almost 100 Twh less than the Bitcoin network. Ethereum is hardly alone in this consensus revolution, with ascendant, next-generation blockchains like Cardano, Polkadot, EOS and Cosmos each implementing their own versions of PoS.

But even if we put aside these developments and focus strictly on the assertion that crypto is a threat to the planet, it is important to distinguish the sources of energy that crypto miners use, with data indicating that most of the electricity used for crypto mining comes from renewable sources.

Research from the University of Cambridge shows that the renewable share of these energy mining pools is as high as 78%. Although there are exceptions depending upon which region of the world you’re focusing on, hydroelectric power, in particular, is rapidly emerging as the de facto power source for crypto-mining operations.

Another factor to consider is that crypto miners are increasingly using excess electricity that would otherwise go to waste. The emergence of crypto mining farms has soaked up extra capacity and prevented the waste of unused renewable energy.

See:  Cryptocurrency and energy consumption debate