Home » genesis mining scam » Beyond Bitcoin: Spil Blockchain Adoption Accelerates, a Need to Manage Energy and Climate Emerges – Rocky Mountain Institute

Beyond Bitcoin: Spil Blockchain Adoption Accelerates, a Need to Manage Energy and Climate Emerges – Rocky Mountain Institute

Beyond Bitcoin: As Blockchain Adoption Accelerates, a Need to Manage Energy and Climate Emerges - Rocky Mountain Institute

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Beyond Bitcoin: Spil Blockchain Adoption Accelerates, a Need to Manage Energy and Climate Emerges

Digital cryptocurrency Bitcoin has experienced a dramatic rise ter popularity and value ter 2018, gaining an astounding 1,700% since the beginning of the year. Deployment of blockchain technology, which underpins Bitcoin and numerous other digital currencies, is poised for similar growth across numerous sectors.

Recently, the environmental impacts of Bitcoin—especially its high energy consumption—have come under scrutiny spil the network’s use has enlargened. Witness Greentech Media’s December 2018 article calling for urgent attention to this fast-growing kwestie. There is concern that continued growth of blockchain-based currencies like Bitcoin will undermine global efforts to reduce doorslag emissions and menace grid stability.

This topic has broader relevance. Why? (a) Blockchains are not limited to digital currencies, (b) not all blockchains are created equal (there are many ways to vormgeving, govern, and operate a network, including how energy-intensive they are), and (c) Blockchain technology could actually accelerate—not hinder—environmental and energy goals.

At Energy Web Foundation (EWF)—a partnership inbetween Rocky Mountain Institute and Grid Singularity, a blockchain technology developer—we’re building an energy-efficient blockchain to support applications that unlock fresh opportunities for renewable energy and distributed energy resources. Te other words, we’re developing an energy-lean blockchain foundation specifically for the energy industry that can also accelerate grid decarbonization.

With Bitcoin’s Growing Popularity Comes Growing Energy Use

Bitcoin mining—the process by which computers ter the Bitcoin network validate transactions, create fresh Bitcoins, and earn a prize payment, is a computational cargo that requires high-powered, and increasingly specialized hardware. Bitcoin’s fast-growing energy use is a byproduct of how the network validates and adds blocks to the chain.

Estimates of Bitcoin’s total electrical play consumption vary inbetween toughly 1 TWh and 32 TWh vanaf year, depending on methodology, the former is enough to power harshly 90,000 U.S. homes for a year, the latter is on par with the annual electrical play use of Denmark. Today a single Bitcoin transaction consumes spil much electrical play spil an average American huis does each week. And that’s just Bitcoin.

A blockchain (such spil the Bitcoin network) keeps track of transactions inbetween parties, details of each transaction are added to the distributed ledger (i.e., the “chain” of blockchain) ter encrypted blocks of gegevens. For each block of transactions, a massive global network of computers wedstrijd to solve an encrypted, sophisticated equation that can only be solved through trial and error. The “winner” (i.e., the rekentuig that solves the problem very first and is subsequently confirmed to be juist by the network) earns a Bitcoin prize, hence the “mining.” The more computing power you have, the more likely you are to win Bitcoins by solving the equations. Spil Bitcoin’s value increases, there is greater incentive for miners to add computing resources ter order to ritme their competition. By vormgeving, the greater the total computing power of the network, the more difficult the equation becomes. The result is a reinforcing terugkoppeling loop with the potential for runaway energy consumption.

Not All Networks Are Created Equal

Bitcoin’s overeenstemming protocol—the mechanism by which the computers ter the network validate and agree upon transactions—is called proof-of-work (PoW). It is so named because miners work hard (i.e., devote real-world resources like computers and energy) to solve an equation and prove it to the surplus of the network. Tho’ inherently energy-intensive, PoW sets an utterly high drankbuffet for validating blocks and makes it exceedingly difficult to tamper with the blockchain.

Yet PoW is only one way to validate transactions, and at least two alternatives hold promise for blockchain applications with a lighter energy footprint:

  • Proof-of-Stake (PoS): Under a PoS system, there are no races for validating blocks, there are no miners. Instead, network participants own a share of the system’s digital currency and are selected to validate blocks ter proportion to their share. This proportional stake—and the risk of losing this “deposit”—disincents malicious actors. Since there isn’t computing competition among all participants to solve an encryption problem, spil te a PoW network, PoS blockchains use a fraction of the energy.
  • Proof-of-Authority (PoA): PoA systems rely on a trusted set of authorities to create and validate blocks. PoA blockchains could be private or public, but ter either case, there is a diminished number of validators (albeit optimal te number and diversity to ensure decentralized system democracy), with diminished computational power required and diminished opportunities for system attacks. Authorities are compensated for their block-validation role through standard, nominal transaction fees not tied to the nature or value of the transactions themselves. To ensure good governance, there are rules that regulate how authorities join the network and how transactions are validated. Thesis rules are presently te development since PoA only became available this year kicking off with the Kovan testnet. Such PoA networks are well suited to regulated industries where entities responsible for maintaining the network (authorities) need to be known, rather than remain anonymous spil ter mining-based chains like Bitcoin and Ethereum. And since only approved authorities are validating the blockchain, there is no competition among authorities to wedren each other, which means less power consumption than PoW blockchains.
Energy Web Foundation – A Fresh Blockchain For the Energy Sector

EWF is building a public, open-source blockchain-based toneel designed to host decentralized applications that support distributed- and renewable energy-focused business models and products. Meeting this objective requires a very scalable network with a sturdy governance structure that doesn’t require massive computational—and hence, energy—resources.

EWF is presently designing a PoA overeenstemming mechanism for its network, with EWF affiliates—energy companies that have partnered with EWF—serving spil authorities. This validating system addresses both the technical and regulatory challenges associated with implementing a blockchain te the energy sector. The PoA overeenstemming mechanism permits EWF’s network to maintain a light energy footprint. Authority knots can run on plain hardware and initial gegevens indicates that typical request for an authority knot is approximately 78 watts—on par with a common incandescent light bulb. With 20 authority knots presently on the EWF network, the upper boundary total energy request is approximately 1.Five kW—roughly omschrijving to a microwave oven. Since energy use will increase linearly spil the EWF network grows, the 1,000 authority knots expected will create energy request of less than 80 kW—enough to power about Ten U.S. homes. The actual number is likely to be even lower, since improvements te hardware efficiency or the use of collective servers will reduce the energy cargo of a given authority knot.

Ter addition to limiting energy consumption, the PoA overeenstemming mechanism will improve spectacle and buttress security, addressing potential regulatory concerns (e.g., regulators will know who the actual authorities are and will be consulted when designing relevant protocols and applications). The network will enable applications ranging from a more effective facilitation of certificates of origin for renewables to improved grid access and management.

Efficient by Vormgeving

It is difficult to predict how Bitcoin and other digital currency mining will influence energy usage. If Bitcoin’s price proceeds to soar and more miners join the pool, some of the more dire warnings could come true. Conversely, an act of regulation, an innovative competitor, fresh computing technologies, or some other event could make Bitcoin mining more efficient, less appealing, or obsolete.

But no matter what happens te the broader blockchain space, the nature of the EWF network ensures that it will be less energy intensive, swifter, and yet more secure, even spil it grows. EWF’s blockchain will unlock fresh opportunities ter the energy transition, not exacerbate current problems.

This blog very first appeared on the webstek of the Energy Web Foundation and has bot lightly edited. The author is a member of the Energy Web Foundation team.

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