The energy consumption required to sustain the Ethereum blockchain platform will be falling considerably as it transitions from mining (PoW) to staking (PoS).
If compared to Bitcoin’s blockchain which relies on mining, Ethereum’s blockchain will become 7,000 times more energy-efficient, if the expectation of reducing its energy consumption by more than 99% is met.
A recent post signed by Carl Beekhuizen published at the Ethereum Foundation’s official blog, explained how much less consumption this transition implies, with the benefits it would bring to the crypto industry.
Staking and PoS Make Ethereum a Green Blockchain
According to Beekhuizen, ETH’s energy consumption will drop by 99.95% after the transition is over leading to an estimation of 87,000 at-home individual stakers, which consume about 100W of energy each, reaching a total of 1.64 megawatts.
Also, around 52,700 exchanges and custodial services that consume around 100W each, per 5.5 validators, adding a total of 0.98 megawatts in energy. These two combined will need around 2.62 megawatts in energy consumption by the time it switches to proof-of-stake.
Although Beekhuizen accepted that this estimated energy reduction may be somehow exaggerated, his predictions are based on his own personal staking setup, which has been optimized to consume 15W.
Moreover, other stakers have proven to need as little as 5W per proof of stake validator.
PoS is Likely the Future
The main difference with the current mining system, is that staking participants don’t allocate hardware computing resources to participate. In other words, staking does not need to competitively use electricity to discover a block.
Proof of stake (PoS) works by selecting validators in proportion to their stake in the associated cryptocurrency. Validators are selected in relation to the amount of tokens in their stake, and gain ETH tokens in return.
This transition announced by the Ethereum Foundation is particularly relevant after the international community increased the pressure on the crypto industry to revise practices to reduce the negative impact on climate change.