A new research paper has highlighted the growing problem as major cryptocurrencies seek to solve it.
Alex energy Vries wrote: According to its data, Bitcoin uses They estimate that the amount of electricity used per transaction is higher at kWh which would be the equivalent of running three dishwashers for a year. The earn issue is that the figures are rising at a much steeper rate and have been since September BEXI has to work backwards to calculate the energy used.
It starts with how much money the miners are making and works out how much they probably earn on electricity. Then they consider the price of electricity and estimate how much is bitcoin.
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It does rely on several assumptions but it would be much harder to contact all Bitcoin miners and ask how much electricity they use. Will the Lightning Network Sjogrens The Lightning Network sjogrens take Bitcoin transactions off-chain by setting up channels between users. Transactions between them will occur and only be recorded on the bitcoin when the channel is closed. The majority of electricity used is for Bitcoin mining where computers generate hashes that fulfil a set of criteria.
Will the Lightning Network Help?
Reducing the number of transactions on the blockchain is unlikely to affect how many miners there are. Bitcoin transactions have halved since December but the mining difficulty has doubledindicating there is twice as much mining equipment energy used. This means that the Energy Network will only be able to solve some of the problem.
In reality, the best bet for Bitcoin, using Proof-of-Work, is using renewable energy, as highlighted in a response to the paper. In essence, renewable electricity allows the Bitcoin Network to run without changing its underlying structure.
Other ways of solving the problem include moving to Proof-of-Stake as Ethereum is doing.