The report identifies Solana as the one using the minimal energy per transaction, but there’s a twist.
According to a new analysis, Solana (SOL), among the most active solid evidence (PoS) blockchains, looks to be the PoS protocol that uses the least amount of power each transaction.
The Crypto Carbon Ratings Institute (CCRI), a research group focused on cryptocurrencies’ impact on the environment, published a new analysis on Wednesday that calculated the power usage and carbon footprint of key PoS blockchains.
Cardano, Solana, Polkadot, Avalanche, Algorand, and Tezos were among the PoS networks studied by the CCRI.
As per the CCRI, the Solana blockchain used 0.166 watt-hours (Wh) of energy per transaction during the study, making this the most energy-efficient PoS protocol among the six analysed networks in terms of energy used per transaction.
According to the analysis, Cardano, a PoS network with the largest market value at the time of publishing, uses the most electricity each transaction, which really is 52 Wh. The CCRI discovered that Cardano utilises the smallest amount of energy per node when compared on a “per-node” basis.
“The overall power consumption per transaction is depend on the amount of nodes connected to the respective network, and this statistic is dependent on the number of transactions that take place on the respective blockchain.” “Regardless of whatever blockchain is in use, these values are likely to fall lower with a rise in transaction rate,” the paper says.
In comparison to other PoS networks, despite Solana’s minimum energy consumption per transaction, the PoS protocol consumes a lot of energy due to the network’s large utilisation. The Solana blockchain emits 934 tonnes of carbon dioxide equivalent each year, compared to 33 tonnes for Polkadot, according to the CCRI analysis.
According to CoinGecko data, Solana is the most-traded PoS protocol at the time of writing, with $2.9 billion in daily transaction volumes, while Polkadot has roughly $900,000 in daily trading volumes.
Unlike mainstream blockchain networks like Bitcoin and Ethereum, which use proof-of-work (PoW) mechanisms to verify transactions, PoS blockchains depend on users merely locking up tokens. PoS blockchains are thought to be more power saving because they do not require extra power from miners to verify transactions.
Many worldwide financial authorities have used PoW’s increasing power rates as another another rationale to prohibit the usage of cryptocurrencies like BTC, as reported earlier. They would almost certainly want to prohibit global banks, given the existing financial system was said to consume twice as much energy as the entire Bitcoin network in March 2021.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.