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Solana Appears to Be Using the Lowest Amount of Electricity, But Its Not That Simple

Solana Appears to Be Using the Lowest Amount of Electricity, But Its Not That Simple

This situation proves that there are always two sides to a story.

One of the most popular proof-of-stake blockchains, Solana, seems to be using the lowest magnitude of electricity.

The research that showed these results was aimed at the impact of cryptocurrencies on the environment. It calculated the exact amount of electricity consumption as well as carbon trace of the biggest proof-of-stake blockchains.

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The electricity consumption of any system has no direct environmental impact, as mere usage does not cause any harm. However, the indirect impacts due to the carbon intensity of the underlying energy sources used for electricity consumption do cause damage to the environment and need to be considered for sustainable business operations.

They start by looking at proof-of-stake systems and their hardware requirements. They then calculate a single node's electricity consumption and offer upper and lower bounds for the networks.

They measure the total network's power usage in the third phase. Finally, they examine more data to develop metrics and investigate transaction throughput energy efficiency.

It is common that global financial regulations use PoW’s high energy consumption rates as a reason to ban cryptocurrencies like Bitcoin or Ethereum. However, traditional banking systems are supposedly consuming way more energy than the entire Bitcoin network. Keeping that in mind, they also might want to ban global banks.

To be exact, the proof-of-work mining mechanism needs additional energy from miners to validate transactions. Proof-of-stake blockchains depend on users locking up tokens, making this mechanism more energy efficient.

The analyzed networks in the report were - Solana, Cardano, Avalanche, Polkadot, Algorad, and Tezos

The findings revealed that Solana is supposedly the most environmentally-friendly proof-of-stake protocol, in terms of energy that is used when doing a transaction, compared to other networks. Cardano, on the other hand, consumes the biggest magnitude of energy (52Wh). But not if we were to talk about “per-node” comparison.

The CCRI revealed that Cardano, in fact, uses the least amount of energy per node.

As a result, Solana does show low energy consumption per transaction, however, due to the network’s usage compared to other proof-of-stake networks, it still does consume a lot of energy overall.

Solana is using the lowest amount of electricity: Electricity consumption per year.

Solana has $2.9 billion in daily trading volumes and secures the name of the most-traded proof-of-stake protocol.

Aaron S., Editor-In-Chief
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.
With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.
Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.
Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.

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