Analysts at the Crypto Carbon Ratings Institute have found that the DPoS algorithm of the Tron blockchain requires many times less electricity than mining crypto assets on PoW consensus.
Commissioned by the Tron Foundation, CCRI conducted a study and published a report on August 24, stating that Tron’s low power requirements make it one of the greenest blockchains in the cryptocurrency market. Tron’s delegated proof-of-stake (DPoS) consensus mechanism contributes to a reduction in carbon footprint, analysts say, especially when compared to other cryptocurrencies such as Bitcoin with its PoW mechanism.
The DPoS algorithm requires users to validate transactions and maintain the network by placing their own TRX tokens on blockchain nodes. The report states that the power consumption of PoW blockchains such as Bitcoin and Ethereum is over 83 million kWh and 22 million kWh, respectively. Although Ethereum plans to move to a Proof of Stake (PoS) consensus mechanism and move away from Proof of Stake mining.
“Tron has an annual energy consumption of 162,868 kWh for over 2.31 billion transactions. This is approximately 99.9% less than the power currently consumed by Bitcoin and Ethereum,” the report says.
According to CCRI, Tron’s energy consumption is “equal to that of 15 average US households.” A key reason for the high energy consumption of PoW blockchains is the verification requirements. To test PoW networks, users need a computer or hardware device capable of solving complex algorithmic problems, such as the SHA-256 hash function for Bitcoin and Keccak-256 for Ethereum.
Meanwhile, the CCRI says that while PoS networks consume less power, more attention should be paid to other factors when evaluating the effectiveness of such networks:
“For practitioners choosing a PoS blockchain protocol, there are other deciding factors such as decentralization, network bandwidth, and functionality (such as smart contracts) that should play a vital role as decision criteria.”
In February, Polkadot was named the greenest Proof-of-Stake blockchain by CCRI experts.
Source: Bits
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