-- Ethereum 2.0 Ethereum (through which most...

13/11/2021  •  45 views
Ethereum 2.0

Ethereum (through which most NFTs are minted) announced that it is switching from proof of work (PoW) to proof of stake (PoS).
In PoS validators (the participants in PoS13)) have to stake at least 32 Ether to participate. They receive Ether over time13.
Less hardware intensive.
Aims to be more environmentally friendly and reduce energy use, compared to the PoW model10.
Energy use in PoS more dependent on the validator hardware involved than in centralized systems12

Ethereum 2.0 Energy Use

Ethereum PoW currently uses 45,000 GWh per year 10.
- 62.56 KWh per transaction 11.

A researcher at the Ethereum Foundation estimates that the change will reduce Ethereum’s energy use to 1/10,000 of its current amount (4.5 GWh per year, or 4,500 MWh per year) 10.

For comparison, an average U.S. home uses around 10.7 MWh per year 1.

A 2021 report gave the following estimates for Eth. 2.0’s energy consumption:
Lower bound: 0.00286 KWh per transaction
Upper bound: 0.55713 KWh per transaction 12

Summary (Updated)

Ethereum, through which NFTs are minted, has a significant carbon footprint.

NFTs also use significant amounts of energy.
- A transaction of 6 NFTs had comparable energy use to what the average U.S. household uses in a year 1,3.

Cryptomining has negative impacts on local communities, particularly on health, safety, and long term infrastructure (as well as electrical costs) with very little return to said communities 5.

Ethereum 2.0 reduces energy use by switching to a PoS model (to an estimated 1/10,000 of its current use) 10.

This translates to 4,500 MWh per year (420 times the amount used by an average U.S. household in the same time period).

11. https://www.trgdatacenters.com/most-environment-friendly-cryptocurrencies/
12. http://blockchain.cs.ucl.ac.uk/wp-content/uploads/2021/11/UCL_CBT_DPS_Q32021_updated-2.pdf
13. https://www.businessinsider.in/cryptocurrency/news/heres-how-ethereum-2-0-cryptocurrency-promises-to-be-green-scalable-and-far-more-efficient/articleshow/83003150.cms