With the shift in time, the scenario in the field of investment and finance is also changing. Earlier, everybody wanted to invest in traditional assets like stocks, real estate, etc but now it is changing. Digital currency is the new big thing. After investing in things like bitcoin, people are becoming millionaires. Indulging in cryptocurrency and blockchain doesn’t just fill your pockets but is also changing lives, want to know how then keep reading this article. This article will tell you about the blockchain energy problem and most importantly answer the awaited question- might bitcoin and the blockchain power cities and save lives?
What is Blockchain?
Typically across a network of computers, a blockchain is a way to maintain as well as update a database. In such databases, new data is added one block at a time. Moreover, each block here refers to the previous block. A blockchain is named so because in it each new block gets added to the existing chain of blocks.
The technology of blockchain works really well for cryptocurrencies. Data can’t be deleted or changed once it becomes a part of the blockchain. Additionally, many blockchains work in a decentralized manner, where data is stored as well as updated simultaneously across the network. Since the discrepancies between different versions will be identified very quickly, it becomes next to impossible to tamper with blockchain. After this, let’s learn about the blockchain energy consumption problem.
What is Blockchain Energy Consumption Problem?
The Blockchain energy consumption problem is huge. Blockchains operate on the condition that the blocks can be added to a chain at consistent time intervals. This is regardless of how many miners are there on the system. In the Bitcoin blockchain, the time interval is close to 10 minutes and in the Ethereum blockchain, the time interval is nearly 15 seconds. When more mining capacity joins the network, the PoW is made harder and thus it takes more time to solve them. This in turn takes more energy. Basically, the computers joining the mining do not change the functionality of a blockchain but they only increase its energy use.
What is Bitcoin?
Bitcoin is one of the most famous cryptocurrencies in the world. It was introduced to the public in 2009 and has been designed to act as money. It is a form of payment that is outside the control of any one group, person, or entity. It removes the involvement of third-party in financial transactions. Blockchain miners have rewarded bitcoins for the work they did to verify transactions. Bitcoins can be purchased on several exchanges. After this, let’s learn about Bitcoin mining electricity consumption.
What is Bitcoin Mining Electricity Consumption?
According to Digiconomist’s Bitcoin Energy Consumption Index, the estimated electricity consumption for one bitcoin transaction is close to 1,449 kWh. This is equal to about 50 days of power for an average US household. Bitcoin mining uses as much electricity as Argentina. According to Bitcoin Energy Consumption Index, the annual bitcoin mining electricity consumption is close to 131.26 terawatt-hours. The energy consumption of bitcoin mining was highest at the end of 2021 and the early months of 2022. After this, in the next question, let’s finally learn about- might bitcoin and the blockchain power cities and save lives. Also read: Tangled up in Blockchain: Blockchain, communities and the global implications of a new energy paradigm
Why are Bitcoin and Blockchain Bad for Your Lives?
Things like blockchain and bitcoin have intense energy requirements and generate a lot of waste. They are not really environmental-friendly. However, the physical money you use isn’t environment-friendly as well but this doesn’t change the fact that Blockchain and Bitcoin are bad for your life. There is a need to make these technologies more environment-friendly as they have high carbon footprint. This should have answered- might bitcoin and the blockchain power cities and save lives?
