Abstract
The growing energy consumption of Bitcoin is caused by its proof-of-work (PoW) algorithm, which is an essential component of the Nakamoto consensus. So-called miners need to deploy highly specialized hardware to solve a cryptographic puzzle and the first one who manages to do so receives a specific amount of the cryptocurrency bitcoin as a reward. As of 2022, the energy that is used to create new blocks and secure the network surpasses the energy consumption of several countries. In this talk I summarize the current academic literature as well as the public media coverage of Bitcoin’s energy use, discuss alternatives to PoW and scrutinize conflicting opinions on this matter. I clarify the question whether this amount of energy is actually needed, if the protocol can apply a different form of consensus and if the demand will continue to grow. Additionally, I juxtapose numerous positive and negative effects that result from Bitcoin’s energy use and strive to answer the question whether this use of energy can be justified. I end the presentation with an outlook on how Bitcoin can potentially evolve and what role its energy consumption plays for its future development.
| Original language | English |
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| Title of host publication | Proceedings of the First International Conference on Sustainable Energy Blockchain & Cryptocurrency |
| Publication status | Published - 2022 |
| Event | First International Conference on Sustainable Energy Blockchain & Cryptocurrency - online Duration: 1 Aug 2022 → 3 Aug 2022 https://gsusi.com/ |
Conference
| Conference | First International Conference on Sustainable Energy Blockchain & Cryptocurrency |
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| Period | 01/08/2022 → 03/08/2022 |
| Internet address |