We’ve all heard about Bitcoin and Ethereum, but have you ever heard about EOS? Do you know how much power cryptocurrencies consume as a whole? Let’s compare Bitcoin, Ethereum and EOS. By the end of this article, you will realize that major cryptocurrencies are huge power consumers unlike something like EOS.
Most blockchains have substantial differences in energy consumption. Bitcoin is the most widely known cryptocurrency out there but it also consumes a ton of power. Are we okay with cryptocurrencies using up such a big chunk of the energy that we generate? Let’s dive deeper.
The energy consumption of Bitcoin is published in numerous papers but it is unknown to the public. Bitcoin uses a POW (Proof Of Work) mechanism, you might now exactly know what it means but its pretty expensive and time-consuming. It consumes the same amount of electricity as the nation of Argentina. That is a whopping 73.1 TWh*. The entire continent of Africa could run on that amount of electricity! As you can probably already tell, Bitcoin consumes a humongous amount of power. The charts below should make the picture even more clear for you.
Country Consumption of Electricity VS Bitcoin
As you can see Bitcoin consumes a lot of energy, but there’s a bigger problem at hand. Most of that energy comes from non-renewable sources. Coal-based electricity might be pretty cheap but we all know how unhealthy it is for the planet.
Ranked second in market cap, Ethereum also very widely known as a cryptocurrency. Being a decentralized platform where developers can create smart contracts, Ethereum is a blockchain with an enormous reach. It can add value and represent the ownership of items, property & dApp development.
It consumes only around 30% of the total energy as Bitcoin does. It’s a big difference don’t get me wrong, but the volume of consumed energy is not a small number. See the image below for more statistics.
Bitcoin and Ethereum are both large consumers of electricity, take a look at their comparison below.
EOS is a new, highly unknown member of the cryptocurrency family. But on the other hand, its power consumption is that much better than Bitcoin and Ethereum. EOS is based on Graphene technology as its predecessor’s Steemit & Bitshares. It uses multi-lane processing capacity using Delegated Proof of Stake consensus algorithm (DPoS).
Well, all of that is just technical jargon to most people, so let’s just take a look at the energy consumption of EOS.
EOS Energy Breakdown
There are a total of 74 Block Producers including the top 21 and 52 standby BPs.
Average energy consumption for a Block Producer is 1.8KW for 24 hours. Therefore, 1.8KW x 24 x 74 = 3196 kWh per day.
3196 kWh x 365 days for Annual Use = 1,137,776 kWh
Converting 1,137,776 kWh into TWh = 0.0011 TWh
If you can’t already notice, EOS consumes much less energy compared to the other two cryptocurrencies. It is 66,000 times more energy efficient than Bitcoin to be exact. Yes, you definitely read it right, let it sink in. With these types of results, we can see that there is a lot of potential for crypto technologies to improve and become more and more energy efficient. Its about time the world took notice of the fact that Bitcoin and Ethereum are huge power guzzlers. Alternate platforms like EOS could be the solution to this humongous wormhole of power consumption.