Here at TechieScoops, we publish articles about news stories that make a difference. But it’s about time we cover something more prominent. Something more in-depth, more technical. Let’s take a look at the comparisons of Proof of Work (POW) crypto-currencies such as Bitcoin & Ethereum then delve into EOS which uses Delegated Proof Of Stake (DPOS). The intention is to bring forward the realization of energy consumption associated with blockchain protocols.
Most blockchains have substantial differences in energy consumption. Bitcoin has the largest market cap of any cryptocurrency but is known as an aggressive energy consumer. We need to focus on sustainability and reducing our carbon footprint on the planet. The blockchain is not excluded from this, let’s dive deeper.
Numerous research papers point out the energy consumption of Bitcoin but its largely unknown to the public. Bitcoin uses a POW (Proof Of Work) mechanism that’s expensive and time-consuming. It consumes the same amount of electricity as the nation of Argentina. How much electricity is that exactly you ask? It’s a whopping 73.1 TWh*. That’s enough to cover the use of electricity in Africa! As you can already tell by now, Bitcoin consumes a humongous amount of power. Below is a chart that shows how high Bitcoin ranks in electricity consumption.
Country Consumption of Electricity VS Bitcoin
Funnily enough, Bitcoin’s energy consumption is not even the biggest problem. Top Bitcoin miners operate using coal-driven power plants in China. Coal-based electricity is available there at low rates but delivers a ridiculously large carbon footprint. Mined crypto-currencies dominate the market by a staggering 70%.
Ranked second in market cap, Ethereum has brought a lot to the masses in recent years. 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’s a step in the right direction as it has significantly lower power consumption than Bitcoin. But don’t let that undermine the fact that electricity consumption of Ethereum is still no small deal. See the image below for more statistics.
Bitcoin and Ethereum are large consumers of electricity, take a look at their combined usage in the image below.
EOS is a new, underdog player in the blockchain industry. And it is the very definition of an underdog, less recognized but full of potential. EOS is based on Graphene technology as its predecessor’s Steemit & Bitshares. With its multi-lane processing capacity using Delegated Proof of Stake consensus algorithm (DPoS), EOS breathes fire and definitely delivers.
The EOS network operates with 21 elected Block Producers and 53 standby Block Producers ready to stand in at any point as voted by token holders.
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
Based on these calculations EOS is 66,000 times more energy efficient than Bitcoin. Yes, you definitely read it right, let it sink in. With these types of results, it’s pretty easy to see that EOS (DPoS) is a game changer. It uses extremely low amounts of power compared to Bitcoin and Ethereum but doesn’t fail to deliver.
Its about time the world took notice of the fact that Bitcoin and Ethereum are huge power guzzlers. If sustainable development is the goal we look forward to, EOS looks to be a part of that bright future. Read more amazing articles here.