Hidden cost of energy consumption in the extraction of cryptocurrencies
As a new world of cryptocurrency, it is natural to think of the influence of mining on the environment. Although some may think that bitcoins and other cryptocurrencies are only digital currencies, they also have a process consuming energy involved in their creation. In this article, we immerse ourselves in the details of Ethereum energy consumption during extraction and examine why it is necessary to consider this aspect.
Many energy processes
Mining is a process of validating transactions in the blockchain network and creating new parts. The most common method used to extract is the use of specialized equipment called specific integrated districts (ASIC). These systems are specially designed for the extraction of cryptocurrencies and have a unique architecture that makes them more effective than traditional computer processors.
While processors, GPU or even older ASIC can extract cryptocurrencies, they do it at higher energy costs. This process requires significant power to carry out calculations and data processing, which results in significant electricity consumption. According to estimates, the exploitation of bitcoins represents around 60 to 80 TWh of electricity per year, with Ethereum much more than his brothers and sisters.
Single consumption of energy Ethereum
Ethereum, being the second largest cryptocurrency according to market capitalization, has a much higher energy demand compared to other cryptocurrencies, such as Bitcoin. According to estimates, Ethereum uses approximately 55 to 60 GWh of electricity per year, which is more or less equivalent to annual energy consumption of around 30,000 to 33,000 medium American houses.
A high demand for energy in Ethereum can be granted to several factors:
* Proof of work (POW) Consensus : Ethereum proof algorithm requires significant calculation power to validate transactions and create new parts.
* Gas costs : The Ethereum network is known for high gas costs which are used to pay the treatment and validation of transactions.
* Network size : With more than 14 million active users, the Ethereum network requires a huge amount of energy to maintain its complexity.
Environmental impact
As you can expect, high energy consumption has significant environmental consequences. Electricity production required to provide the Ethereum extraction process contributes to the emission of greenhouse gas, which are the main factor contributing to climate change.
To mitigate this problem, several companies and organizations have started to study other methods of extraction of cryptocurrencies, such as:
* Renewable energy : The use of renewable energy sources, such as solar or wind energy, can considerably reduce the carbon trace of Ethereum extraction.
* Energy equipment : Researchers develop more energy ASIC that consume less electricity during calculation.
* Cloud services : Some cloud suppliers offer cryptocurrency extraction services in which users can rent computer energy from these suppliers to cryptocurrencies.
Application
Energy consumption required to extract Ethereum is a serious problem. As the demand for digital currencies increases, it is necessary to consider the impact of our activities on the environment. Including high energy needs for Ethereum and examining alternative methods, we can work on the reduction of the carbon trace of the exploitation of cryptocurrency and the creation of a more balanced future.
Sources:
- [Ethereum mining energy consumption of energy] (
- [Renewable energy for the extraction of cryptocurrencies] (https: //www.sciemirect.