Bitcoin's annual electricity consumption is estimated to be 51.09 terawatt hours, which is more than many countries. This high energy use is due to bitcoin mining, which secures the network through proof-of-work but requires vast computing power. If bitcoin was a country, its electricity consumption would be similar to countries like Iraq or Singapore. However, each bitcoin transaction uses much more energy than traditional payment networks like Visa. Alternative consensus mechanisms like proof-of-stake promise to be far more energy efficient.
This document proposes solutions to deficiencies in Bitcoin and introduces a new electronic cash system called CryptoNote. It summarizes Bitcoin's drawbacks as traceability of transactions, unequal voting power due to proof-of-work function favoring specialized hardware, irregular emission schedule causing issues, hardcoded constants preventing quick updates, and bulky scripts. CryptoNote aims to solve these through untraceable and unlinkable transactions, a modified proof-of-work, smooth emission, adjustable variables, and simplified scripts. The document provides background on these issues and CryptoNote's approach to addressing them.
Energy consumption: how much is used for one bitcoin transaction?Ksenija Tocilina
This document discusses various estimates for the amount of energy consumed by a single Bitcoin transaction. It outlines estimates ranging from 91.6 kWh according to calculations by Leonhard Weese, to 300-900 kWh according to authors of an article in Joule scientific magazine. The wide range of estimates is due to different methodologies and assumptions, as well as potential biases depending on whether the analyst generally supports or criticizes Bitcoin. There is no definitive answer currently for the real energy use of one Bitcoin transaction.
This document discusses whether decentralized digital cryptocurrencies like Bitcoin will be accepted in modern society. It provides background on Bitcoin and how its underlying blockchain technology works, including how transactions are recorded in blocks and verified through mining. The document aims to analyze the factors that influence societal acceptance of Bitcoin by examining how it impacts key stakeholders in society.
Blockchain Technology and its effect on Environment: A Comparative Study betw...AI Publications
With the growing interest in cryptocurrency and blockchain by renowned companies environmental issues are also being highlighted due to the exhaustion of huge amounts of energy. This paper aims to give a primary overview of how cryptocurrencies are created by using the proof of work method and how blockchain works. Statistical references have been given to elaborate on how this process consumes high energy and increases carbon footprint causing harm to the environment. In comparison, the proof of stake method has established itself as an eco-friendly alternative. Ethereum has already manifested that using PoS can resolve the problem and is also safe for the environment.
The document discusses the microeconomic mechanisms behind the Bitcoin network. It begins by explaining how Bitcoin achieves decentralization through a peer-to-peer network where nodes validate transactions and add blocks to the blockchain through a process called mining. It then covers Bitcoin's value drivers like its deflationary model and limited supply. The bulk of the document analyzes game theory concepts like Nash equilibriums, incentives, attacks and defenses in the Bitcoin mining process. It also discusses alternatives to Bitcoin's proof-of-work model like proof-of-stake.
This document provides an overview of Bitcoin including:
1. The history and creation of Bitcoin, how it works without a central authority, and how new bitcoins are created through mining.
2. How transactions work using private keys and the blockchain to record balances and verify transactions.
3. Methods for individuals and merchants to use Bitcoin, including obtaining, storing, and spending bitcoins as well as advantages like low fees and risks to consider.
4. Both advantages like payment freedom and security, and disadvantages like price volatility.
Bitcoin Technology” Bitcoin is an innovative technology that offers several benefits, such as fast transaction speeds, low costs, and the elimination of the need for a third-party intermediary to process transactions. Unfortunately, BitCoin has faced resistance from regulators because the technology has been used for nefarious purposes, including online drug purchases and Ponzi schemes. This note provides a basic explanation of how BitCoin works and is currently regulated on federal and state levels. This note argues that BitCoin should not be forced into old regulatory frameworks that do not adequately balance security concerns with the benefits of BitCoin. BitCoin should not be regulated at the federal level. Instead, state regulations should focus on BitCoin providers that can unilaterally transfer or block transfers of BitCoin on behalf of users. State regulators should require such providers to register with their given states, maintain adequate books and records, implement advanced cyber security standards, conduct audits of their operations, and submit reports to state regulators. In crafting these regulations, regulators should keep in mind that vague or poorly drafted regulations will chill innovation. A Bitcoin would allow online payments to be sent directly from one party to another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending. We propose a solution to the double-spending problem using a peer-to-peer network.
Rapid Prototyping of a Mining Application for Cryptocurrency: Bitcoinijtsrd
Bitcoin is the worlds first completely decentralized peer-to-peer digital currency. The main reason behind using bitcoin is that of its low transaction fee compared to any other transfers like western union, credit card transaction etc. and bitcoin transactions are transparent. So we dont have to consider about tax problems.It avoids Taxation. Henna Abdul Azeez | G Vadivu"Rapid Prototyping of a Mining Application for Cryptocurrency: Bitcoin" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-1 | Issue-5 , August 2017, URL: http://www.ijtsrd.com/papers/ijtsrd2363.pdf http://www.ijtsrd.com/computer-science/other/2363/rapid-prototyping-of-a-mining-application-for-cryptocurrency-bitcoin/henna-abdul-azeez
This document proposes solutions to deficiencies in Bitcoin and introduces a new electronic cash system called CryptoNote. It summarizes Bitcoin's drawbacks as traceability of transactions, unequal voting power due to proof-of-work function favoring specialized hardware, irregular emission schedule causing issues, hardcoded constants preventing quick updates, and bulky scripts. CryptoNote aims to solve these through untraceable and unlinkable transactions, a modified proof-of-work, smooth emission, adjustable variables, and simplified scripts. The document provides background on these issues and CryptoNote's approach to addressing them.
Energy consumption: how much is used for one bitcoin transaction?Ksenija Tocilina
This document discusses various estimates for the amount of energy consumed by a single Bitcoin transaction. It outlines estimates ranging from 91.6 kWh according to calculations by Leonhard Weese, to 300-900 kWh according to authors of an article in Joule scientific magazine. The wide range of estimates is due to different methodologies and assumptions, as well as potential biases depending on whether the analyst generally supports or criticizes Bitcoin. There is no definitive answer currently for the real energy use of one Bitcoin transaction.
This document discusses whether decentralized digital cryptocurrencies like Bitcoin will be accepted in modern society. It provides background on Bitcoin and how its underlying blockchain technology works, including how transactions are recorded in blocks and verified through mining. The document aims to analyze the factors that influence societal acceptance of Bitcoin by examining how it impacts key stakeholders in society.
Blockchain Technology and its effect on Environment: A Comparative Study betw...AI Publications
With the growing interest in cryptocurrency and blockchain by renowned companies environmental issues are also being highlighted due to the exhaustion of huge amounts of energy. This paper aims to give a primary overview of how cryptocurrencies are created by using the proof of work method and how blockchain works. Statistical references have been given to elaborate on how this process consumes high energy and increases carbon footprint causing harm to the environment. In comparison, the proof of stake method has established itself as an eco-friendly alternative. Ethereum has already manifested that using PoS can resolve the problem and is also safe for the environment.
The document discusses the microeconomic mechanisms behind the Bitcoin network. It begins by explaining how Bitcoin achieves decentralization through a peer-to-peer network where nodes validate transactions and add blocks to the blockchain through a process called mining. It then covers Bitcoin's value drivers like its deflationary model and limited supply. The bulk of the document analyzes game theory concepts like Nash equilibriums, incentives, attacks and defenses in the Bitcoin mining process. It also discusses alternatives to Bitcoin's proof-of-work model like proof-of-stake.
This document provides an overview of Bitcoin including:
1. The history and creation of Bitcoin, how it works without a central authority, and how new bitcoins are created through mining.
2. How transactions work using private keys and the blockchain to record balances and verify transactions.
3. Methods for individuals and merchants to use Bitcoin, including obtaining, storing, and spending bitcoins as well as advantages like low fees and risks to consider.
4. Both advantages like payment freedom and security, and disadvantages like price volatility.
Bitcoin Technology” Bitcoin is an innovative technology that offers several benefits, such as fast transaction speeds, low costs, and the elimination of the need for a third-party intermediary to process transactions. Unfortunately, BitCoin has faced resistance from regulators because the technology has been used for nefarious purposes, including online drug purchases and Ponzi schemes. This note provides a basic explanation of how BitCoin works and is currently regulated on federal and state levels. This note argues that BitCoin should not be forced into old regulatory frameworks that do not adequately balance security concerns with the benefits of BitCoin. BitCoin should not be regulated at the federal level. Instead, state regulations should focus on BitCoin providers that can unilaterally transfer or block transfers of BitCoin on behalf of users. State regulators should require such providers to register with their given states, maintain adequate books and records, implement advanced cyber security standards, conduct audits of their operations, and submit reports to state regulators. In crafting these regulations, regulators should keep in mind that vague or poorly drafted regulations will chill innovation. A Bitcoin would allow online payments to be sent directly from one party to another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending. We propose a solution to the double-spending problem using a peer-to-peer network.
Rapid Prototyping of a Mining Application for Cryptocurrency: Bitcoinijtsrd
Bitcoin is the worlds first completely decentralized peer-to-peer digital currency. The main reason behind using bitcoin is that of its low transaction fee compared to any other transfers like western union, credit card transaction etc. and bitcoin transactions are transparent. So we dont have to consider about tax problems.It avoids Taxation. Henna Abdul Azeez | G Vadivu"Rapid Prototyping of a Mining Application for Cryptocurrency: Bitcoin" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-1 | Issue-5 , August 2017, URL: http://www.ijtsrd.com/papers/ijtsrd2363.pdf http://www.ijtsrd.com/computer-science/other/2363/rapid-prototyping-of-a-mining-application-for-cryptocurrency-bitcoin/henna-abdul-azeez
W24717 economic limit of bitcoin dan blockhainRein Mahatma
This document analyzes the economic limits of Bitcoin and blockchains through three equations:
1) A rent-seeking competition equation showing that the reward for mining must be fully dissipated by mining costs. This implies mining rewards must be large relative to costs.
2) An incentive compatibility equation showing that the costs of manipulating the blockchain through a majority attack must exceed the benefits of attacking it. This implies costs are related to ongoing mining costs.
3) Combining the first two equations implies that ongoing mining rewards must be large relative to the one-time benefits of attacking the blockchain. This suggests Bitcoin may face economic limits to how important it can become due to incentives for majority attacks.
Bitcoin is a peer-to-peer electronic cash system that uses blockchain technology to record transactions. The blockchain consists of a chain of blocks containing transactions. Miners create new blocks approximately every 10 minutes by solving proof-of-work puzzles. Bitcoin uses economic incentives to secure the network, as attacking the network would be more costly than potential gains. Understanding Bitcoin fully requires knowledge across many disciplines like computer science, economics, and law.
This document discusses Bitcoin, a digital currency. It begins by providing background on Bitcoin's origins in 2008 and its goal of creating an electronic payment system without the need for trusted third parties. The rest of the document then covers the key technologies that power Bitcoin, including blockchain technology, public key cryptography, the Bitcoin protocol for validating transactions, and Bitcoin wallets for storing private keys. Advantages of Bitcoin discussed include anonymity of transactions and ability to transfer funds directly without intermediaries.
What Is The Best Place To Buy Ethereum In Canada?Netcoins Canada
Ethereum has several major problems, however. The first is that gas fees have become very expensive in the last couple of years because the network has become so popular and is therefore very congested. Here is the best place to buy Ethereum in Canada.
Ethereum has several major problems, however. The first is that gas fees have become very expensive in the last couple of years because the network has become so popular and is therefore very congested. Here is the best place to buy Ethereum in Canada.
- Bitgesell is a cryptocurrency that is derived from Bitcoin but with some enhanced features such as a faster halving rate, smaller block size, and burning 90% of transaction fees.
- It aims to be more scarce than Bitcoin over time by halving annually versus Bitcoin's halving every 4 years. This results in a faster declining emission rate for Bitgesell.
- The creator of Bitgesell is listed as "Emma Wu" and it is community-driven rather than backed by a company. It is inspired by the ideas of Silvio Gesell as well as Bitcoin.
- Cryptocurrency is digital currency that uses cryptography to secure transactions and control the creation of new units. Bitcoin was the first cryptocurrency, created in 2008 by an unknown person under the name Satoshi Nakamoto.
- Bitcoin uses blockchain technology to achieve a decentralized consensus on transactions without a central authority. Miners verify transactions and are rewarded with new bitcoins for solving complex math problems. This process, called proof-of-work, secures the network against fraud.
- While Bitcoin has no intrinsic value, its price has risen dramatically since inception due to speculation. However, Bitcoin remains highly volatile and its long-term value is uncertain since it is not backed by any government or central bank.
WHAT IS CRYPTOCURRENCY EXPECTED APPLICATIONS.Qutomatic
WHAT IS CRYPTOCURRENCY EXPECTED APPLICATIONS.
Since the introduction of Bitcoin in 2009 and cryptocurrencies in general, the use of digital currencies has
continued to grow. Early adopters utilized personal computers to complete the necessary steps that would result
in new digital “coins”. Commercial deployment of specialized mining servers, and introduction of mining farms,
followed shortly after.
One of the complaints about Bitcoin is that it sucks up so much energy from the electric grid. A recent estimate of how much electricity it takes for mining one Bitcoin is 1,449 kWh (kilowatt hours). This is the average electricity consumption for an American household for fifty days. Here is why Bitcoin uses so much energy.
https://youtu.be/bO4QF1SBGWM
This document provides an overview and introduction to cryptocurrencies and blockchain technology for investors. It defines key terms like blockchain, distributed ledger, cryptocurrency and Bitcoin. It explains how blockchain works to securely record transactions in digital ledgers without a central authority. The document outlines the investment opportunities in cryptocurrencies like Bitcoin themselves, as well as companies driving innovation in the crypto economy through mining, exchanges, payments and more. It aims to help investors understand this new asset class and where it may fit in a portfolio.
IRJET- Bitcoin – A New Currency in the ERA of InvestmentIRJET Journal
1. The document discusses Bitcoin, a decentralized digital currency that uses blockchain technology to record transactions through a public ledger maintained by a network of users.
2. It describes how traditional payment methods like cash and digital cash have limitations that are addressed by Bitcoin, which uses cryptographic signatures and time-stamping to prevent double spending without a central authority.
3. Micropayment channels allow many small transactions to occur off the blockchain through a series of cryptographically signed updates to balances, settling on the blockchain only periodically, which helps address scalability issues as the number of Bitcoin users and transactions grows.
IRJET- Probabilistic Stress Distribution in Thick Cylindrical Pipe using Fini...IRJET Journal
1) Blockchain is a distributed ledger technology that records transactions in a way that is secure, anonymous, and maintains data integrity without requiring a central authority.
2) While blockchain has potential applications beyond cryptocurrencies, it faces technical challenges including limited throughput, latency in transactions, scalability issues, and lack of skills that may limit widespread adoption.
3) The document discusses the background of blockchain and bitcoin, use cases for blockchain technology, and key challenges including throughput, latency, size and bandwidth limitations, security issues, wasted resources from mining, and lack of development skills.
Bitcoin is a digital, decentralized, partially anonymous currency, not backed by any government or other legal entity, and not redeemable for gold or other commodity. It relies on peer-to-peer networking and cryptography to maintain its integrity. A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending.
One morning we were sitting in the office preparing some crypto reports for our clients. The birds were singing, the markets were swinging and all was normal. Then someone said “What happens when all the Bitcoins are mined?”
After some extensive research and 30 cups of coffee, we had our answers. And we’re going to share them with you. We’re nice like that.
Keynote: Blockchain Technology: a Sustainable Concept for the Future?Ingo Weber
The keynote at the Kryptorechtstag Wien titled "Blockchain Technology: a Sustainable Concept for the Future?" started with a brief introduction to blockchain technology. The talk aimed to critically evaluate the future prospects of blockchain in terms of environmental sustainability and electricity usage. It included an up-to-date view on these topics, using Bitcoin and Ethereum as primary examples.
1. Bitcoin is a decentralized digital currency that uses cryptography to secure transactions. It was created in 2009 by the mysterious Satoshi Nakamoto.
2. Blockchain technology underlies Bitcoin and other cryptocurrencies. It is a continuously growing list of transaction records linked through cryptography.
3. Mining is the process by which transactions are verified and added to the public blockchain ledger. Miners use specialized computer hardware to solve complex math problems, and are rewarded with new Bitcoin.
BlockChain basics for the non-technical banker covering what's happening, what the opportunities are, and the problems we all face. Covers BitCoin and Ethereum with brief mentions made of Ripple and the HyperLedger project.
Crypto assets fundamentals presentation. It provides an overview on cryptocurrencies, cryptoassets and their principles. How they works, where their value come from, statistics, their regulatory environment, how to use and store them, type of wallets, investment principles and more!
Discover the benefits of outsourcing SEO to Indiadavidjhones387
"Discover the benefits of outsourcing SEO to India! From cost-effective services and expert professionals to round-the-clock work advantages, learn how your business can achieve digital success with Indian SEO solutions.
W24717 economic limit of bitcoin dan blockhainRein Mahatma
This document analyzes the economic limits of Bitcoin and blockchains through three equations:
1) A rent-seeking competition equation showing that the reward for mining must be fully dissipated by mining costs. This implies mining rewards must be large relative to costs.
2) An incentive compatibility equation showing that the costs of manipulating the blockchain through a majority attack must exceed the benefits of attacking it. This implies costs are related to ongoing mining costs.
3) Combining the first two equations implies that ongoing mining rewards must be large relative to the one-time benefits of attacking the blockchain. This suggests Bitcoin may face economic limits to how important it can become due to incentives for majority attacks.
Bitcoin is a peer-to-peer electronic cash system that uses blockchain technology to record transactions. The blockchain consists of a chain of blocks containing transactions. Miners create new blocks approximately every 10 minutes by solving proof-of-work puzzles. Bitcoin uses economic incentives to secure the network, as attacking the network would be more costly than potential gains. Understanding Bitcoin fully requires knowledge across many disciplines like computer science, economics, and law.
This document discusses Bitcoin, a digital currency. It begins by providing background on Bitcoin's origins in 2008 and its goal of creating an electronic payment system without the need for trusted third parties. The rest of the document then covers the key technologies that power Bitcoin, including blockchain technology, public key cryptography, the Bitcoin protocol for validating transactions, and Bitcoin wallets for storing private keys. Advantages of Bitcoin discussed include anonymity of transactions and ability to transfer funds directly without intermediaries.
What Is The Best Place To Buy Ethereum In Canada?Netcoins Canada
Ethereum has several major problems, however. The first is that gas fees have become very expensive in the last couple of years because the network has become so popular and is therefore very congested. Here is the best place to buy Ethereum in Canada.
Ethereum has several major problems, however. The first is that gas fees have become very expensive in the last couple of years because the network has become so popular and is therefore very congested. Here is the best place to buy Ethereum in Canada.
- Bitgesell is a cryptocurrency that is derived from Bitcoin but with some enhanced features such as a faster halving rate, smaller block size, and burning 90% of transaction fees.
- It aims to be more scarce than Bitcoin over time by halving annually versus Bitcoin's halving every 4 years. This results in a faster declining emission rate for Bitgesell.
- The creator of Bitgesell is listed as "Emma Wu" and it is community-driven rather than backed by a company. It is inspired by the ideas of Silvio Gesell as well as Bitcoin.
- Cryptocurrency is digital currency that uses cryptography to secure transactions and control the creation of new units. Bitcoin was the first cryptocurrency, created in 2008 by an unknown person under the name Satoshi Nakamoto.
- Bitcoin uses blockchain technology to achieve a decentralized consensus on transactions without a central authority. Miners verify transactions and are rewarded with new bitcoins for solving complex math problems. This process, called proof-of-work, secures the network against fraud.
- While Bitcoin has no intrinsic value, its price has risen dramatically since inception due to speculation. However, Bitcoin remains highly volatile and its long-term value is uncertain since it is not backed by any government or central bank.
WHAT IS CRYPTOCURRENCY EXPECTED APPLICATIONS.Qutomatic
WHAT IS CRYPTOCURRENCY EXPECTED APPLICATIONS.
Since the introduction of Bitcoin in 2009 and cryptocurrencies in general, the use of digital currencies has
continued to grow. Early adopters utilized personal computers to complete the necessary steps that would result
in new digital “coins”. Commercial deployment of specialized mining servers, and introduction of mining farms,
followed shortly after.
One of the complaints about Bitcoin is that it sucks up so much energy from the electric grid. A recent estimate of how much electricity it takes for mining one Bitcoin is 1,449 kWh (kilowatt hours). This is the average electricity consumption for an American household for fifty days. Here is why Bitcoin uses so much energy.
https://youtu.be/bO4QF1SBGWM
This document provides an overview and introduction to cryptocurrencies and blockchain technology for investors. It defines key terms like blockchain, distributed ledger, cryptocurrency and Bitcoin. It explains how blockchain works to securely record transactions in digital ledgers without a central authority. The document outlines the investment opportunities in cryptocurrencies like Bitcoin themselves, as well as companies driving innovation in the crypto economy through mining, exchanges, payments and more. It aims to help investors understand this new asset class and where it may fit in a portfolio.
IRJET- Bitcoin – A New Currency in the ERA of InvestmentIRJET Journal
1. The document discusses Bitcoin, a decentralized digital currency that uses blockchain technology to record transactions through a public ledger maintained by a network of users.
2. It describes how traditional payment methods like cash and digital cash have limitations that are addressed by Bitcoin, which uses cryptographic signatures and time-stamping to prevent double spending without a central authority.
3. Micropayment channels allow many small transactions to occur off the blockchain through a series of cryptographically signed updates to balances, settling on the blockchain only periodically, which helps address scalability issues as the number of Bitcoin users and transactions grows.
IRJET- Probabilistic Stress Distribution in Thick Cylindrical Pipe using Fini...IRJET Journal
1) Blockchain is a distributed ledger technology that records transactions in a way that is secure, anonymous, and maintains data integrity without requiring a central authority.
2) While blockchain has potential applications beyond cryptocurrencies, it faces technical challenges including limited throughput, latency in transactions, scalability issues, and lack of skills that may limit widespread adoption.
3) The document discusses the background of blockchain and bitcoin, use cases for blockchain technology, and key challenges including throughput, latency, size and bandwidth limitations, security issues, wasted resources from mining, and lack of development skills.
Bitcoin is a digital, decentralized, partially anonymous currency, not backed by any government or other legal entity, and not redeemable for gold or other commodity. It relies on peer-to-peer networking and cryptography to maintain its integrity. A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution. Digital signatures provide part of the solution, but the main benefits are lost if a trusted third party is still required to prevent double-spending.
One morning we were sitting in the office preparing some crypto reports for our clients. The birds were singing, the markets were swinging and all was normal. Then someone said “What happens when all the Bitcoins are mined?”
After some extensive research and 30 cups of coffee, we had our answers. And we’re going to share them with you. We’re nice like that.
Keynote: Blockchain Technology: a Sustainable Concept for the Future?Ingo Weber
The keynote at the Kryptorechtstag Wien titled "Blockchain Technology: a Sustainable Concept for the Future?" started with a brief introduction to blockchain technology. The talk aimed to critically evaluate the future prospects of blockchain in terms of environmental sustainability and electricity usage. It included an up-to-date view on these topics, using Bitcoin and Ethereum as primary examples.
1. Bitcoin is a decentralized digital currency that uses cryptography to secure transactions. It was created in 2009 by the mysterious Satoshi Nakamoto.
2. Blockchain technology underlies Bitcoin and other cryptocurrencies. It is a continuously growing list of transaction records linked through cryptography.
3. Mining is the process by which transactions are verified and added to the public blockchain ledger. Miners use specialized computer hardware to solve complex math problems, and are rewarded with new Bitcoin.
BlockChain basics for the non-technical banker covering what's happening, what the opportunities are, and the problems we all face. Covers BitCoin and Ethereum with brief mentions made of Ripple and the HyperLedger project.
Crypto assets fundamentals presentation. It provides an overview on cryptocurrencies, cryptoassets and their principles. How they works, where their value come from, statistics, their regulatory environment, how to use and store them, type of wallets, investment principles and more!
Discover the benefits of outsourcing SEO to Indiadavidjhones387
"Discover the benefits of outsourcing SEO to India! From cost-effective services and expert professionals to round-the-clock work advantages, learn how your business can achieve digital success with Indian SEO solutions.
Meet up Milano 14 _ Axpo Italia_ Migration from Mule3 (On-prem) to.pdfFlorence Consulting
Quattordicesimo Meetup di Milano, tenutosi a Milano il 23 Maggio 2024 dalle ore 17:00 alle ore 18:30 in presenza e da remoto.
Abbiamo parlato di come Axpo Italia S.p.A. ha ridotto il technical debt migrando le proprie APIs da Mule 3.9 a Mule 4.4 passando anche da on-premises a CloudHub 1.0.
Gen Z and the marketplaces - let's translate their needsLaura Szabó
The product workshop focused on exploring the requirements of Generation Z in relation to marketplace dynamics. We delved into their specific needs, examined the specifics in their shopping preferences, and analyzed their preferred methods for accessing information and making purchases within a marketplace. Through the study of real-life cases , we tried to gain valuable insights into enhancing the marketplace experience for Generation Z.
The workshop was held on the DMA Conference in Vienna June 2024.
Understanding User Behavior with Google Analytics.pdfSEO Article Boost
Unlocking the full potential of Google Analytics is crucial for understanding and optimizing your website’s performance. This guide dives deep into the essential aspects of Google Analytics, from analyzing traffic sources to understanding user demographics and tracking user engagement.
Traffic Sources Analysis:
Discover where your website traffic originates. By examining the Acquisition section, you can identify whether visitors come from organic search, paid campaigns, direct visits, social media, or referral links. This knowledge helps in refining marketing strategies and optimizing resource allocation.
User Demographics Insights:
Gain a comprehensive view of your audience by exploring demographic data in the Audience section. Understand age, gender, and interests to tailor your marketing strategies effectively. Leverage this information to create personalized content and improve user engagement and conversion rates.
Tracking User Engagement:
Learn how to measure user interaction with your site through key metrics like bounce rate, average session duration, and pages per session. Enhance user experience by analyzing engagement metrics and implementing strategies to keep visitors engaged.
Conversion Rate Optimization:
Understand the importance of conversion rates and how to track them using Google Analytics. Set up Goals, analyze conversion funnels, segment your audience, and employ A/B testing to optimize your website for higher conversions. Utilize ecommerce tracking and multi-channel funnels for a detailed view of your sales performance and marketing channel contributions.
Custom Reports and Dashboards:
Create custom reports and dashboards to visualize and interpret data relevant to your business goals. Use advanced filters, segments, and visualization options to gain deeper insights. Incorporate custom dimensions and metrics for tailored data analysis. Integrate external data sources to enrich your analytics and make well-informed decisions.
This guide is designed to help you harness the power of Google Analytics for making data-driven decisions that enhance website performance and achieve your digital marketing objectives. Whether you are looking to improve SEO, refine your social media strategy, or boost conversion rates, understanding and utilizing Google Analytics is essential for your success.
1. Home / Bitcoin Energy Consumption Index
Bitcoin Energy Consumption Index
EstimatedTWhperYear
Bitcoin Energy Consumption Index Chart
Click and drag in the plot area to zoom in
22. Jan 24. Jan 26. Jan 28. Jan 30. Jan 1. Feb 3. Feb 5. Feb 7. Feb 9. Feb 11. Feb 13. Feb 15. Feb 17. F
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42.5
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Key Network Statistics
Description Value
Bitcoin's current estimated annual electricity consumption* (TWh) 51.09
Annualized global mining revenues $8,437,412,283
Annualized estimated global mining costs $2,554,567,053
Country closest to Bitcoin in terms of electricity consumption Uzbekistan
Estimated electricity used over the previous day (KWh) 139,976,277
Implied Watts per GH/s 0.231
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2. Description Value
Total Network Hashrate in PH/s (1,000,000 GH/s) 25,235
Electricity consumed per transaction (KWh) 764.00
Number of U.S. households that could be powered by Bitcoin 4,730,680
Number of U.S. households powered for 1 day by the electricity consumed
for a single transaction
25.82
Bitcoin's electricity consumption as a percentage of the world's electricity
consumption
0.23%
Annual carbon footprint (kt of CO2) 25,035
Carbon footprint per transaction (kg of CO2) 374.41
*The assumptions underlying this energy consumption estimate can be found here. Criticism and potential validation of the estimate is discussed here.
Did you know?
Ever since its inception Bitcoin’s trust-minimizing consensus has been enabled by its proof-of-work algorithm. The machines
performing the “work” are consuming huge amounts of energy while doing so. The Bitcoin Energy Consumption Index was
created to provide insight into this amount, and raise awareness on the unsustainability of the proof-of-work algorithm.
Note that the Index contains the aggregate of Bitcoin and Bitcoin Cash (other forks of the Bitcoin network are not included).
A separate index was created for Ethereum, which can be found here.
What kind of work are miners performing?
New sets of transactions (blocks) are added to Bitcoin’s blockchain roughly every 10 minutes by so-called miners. While
working on the blockchain these miners aren’t required to trust each other. The only thing miners have to trust is the code
that runs Bitcoin. The code includes several rules to validate new transactions. For example, a transaction can only be valid if
the sender actually owns the sent amount. Every miner individually con rms whether transactions adhere to these rules,
eliminating the need to trust other miners.
The trick is to get all miners to agree on the same history of transactions. Every miner in the network is constantly tasked
with preparing the next batch of transactions for the blockchain. Only one of these blocks will be randomly selected to
become the latest block on the chain. Random selection in a distributed network isn’t easy, so this is where proof-of-work
comes in. In proof-of-work, the next block comes from the rst miner that produces a valid one. This is easier said than
done, as the Bitcoin protocol makes it very di cult for miners to do so. In fact, the di culty is regularly adjusted by the
protocol to ensure that all miners in the network will only produce one valid bock every 10 minutes on average. Once one of
the miners nally manages to produce a valid block, it will inform the rest of the network. Other miners will accept this block
once they con rm it adheres to all rules, and then discard whatever block they had been working on themselves. The lucky
miner gets rewarded with a xed amount of coins, along with the transaction fees belonging to the processed transactions
in the new block. The cycle then starts again.
3. The process of producing a valid block is largely based on trial and error, where miners are making numerous attempts
every second trying to nd the right value for a block component called the “nonce“, and hoping the resulting completed
block will match the requirements (as there is no way to predict the outcome). For this reason, mining is sometimes
compared to a lottery where you can pick your own numbers. The number of attempts (hashes) per second is given by your
mining equipment’s hashrate. This will typically be expressed in Gigahash per second (1 billion hashes per second).
Sustainability
The continuous block mining cycle incentivizes people all over the world to mine Bitcoin. As mining can provide a solid
stream of revenue, people are very willing to run power-hungry machines to get a piece of it. Over the years this has caused
the total energy consumption of the Bitcoin network to grow to epic proportions, as the price of the currency reached new
highs. The entire Bitcoin network now consumes more energy than a number of countries, based on a report published by
the International Energy Agency. If Bitcoin was a country, it would rank as shown below.
TWhperYear
Energy Consumption by Country Chart
54. Iraq 53. Singapore 52. Portugal 51. Bitcoin 50. Uzbekistan 49. Romania
0
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Apart from the previous comparison, it also possible to compare Bitcoin’s energy consumption to some of the world’s
biggest energy consuming nations. The result is shown hereafter.
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4. Percentage that could be powered by Bitcoin
Bitcoin Energy Consumption Relative to Several Countries
United States
Russian Federation
Canada
Germany
France
United Kingdom
Italy
Australia
Netherlands
Czech Republic
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65%
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Carbon footprint
Bitcoin’s biggest problem is not even its massive energy consumption, but that the network is mostly fueled by coal- red
power plants in China. Coal-based electricity is available at very low rates in this country. Even with a conservative emission
factor, this results in an extreme carbon footprint for each unique Bitcoin transaction.
Comparing Bitcoin’s energy consumption to other payment systems
To put the energy consumed by the Bitcoin network into perspective we can compare it to another payment system like
VISA for example. According to VISA, the company consumed a total amount of 674,922 Gigajoules of energy (from various
sources) globally for all its operations. This means that VISA has an energy need equal to that of around 17,000 U.S.
households. We also know VISA processed 111.2 billion transactions in 2017. With the help of these numbers, it is possible
to compare both networks and show that Bitcoin is extremely more energy intensive per transaction than VISA (note that
the chart below compares a single Bitcoin transaction to 100,000 VISA transactions).
Kilowatt-hour
Bitcoin network versus VISA network average consumption
1 Bitcoin transaction 100,000 VISA transactions
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600
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1000
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5. Of course, these numbers are far from perfect (e.g. energy consumption of VISA o ces isn’t included), but the di erences
are so extreme that they will remain shocking regardless. A comparison with the average non-cash transaction in the regular
nancial system still reveals that an average Bitcoin transaction requires several thousands of times more energy. One could
argue that this is simply the price of a transaction that doesn’t require a trusted third party, but this price doesn’t have to be
so high as will be discussed hereafter.
Alternatives
Proof-of-work was the rst consensus algorithm that managed to prove itself, but it isn’t the only consensus algorithm. More
energy e cient algorithms, like proof-of-stake, have been in development over recent years. In proof-of-stake coin owners
create blocks rather than miners, thus not requiring power hungry machines that produce as many hashes per second as
possible. Because of this, the energy consumption of proof-of-stake is negligible compared to proof-of-work. Bitcoin could
potentially switch to such an consensus algorithm, which would signi cantly improve sustainability. The only downside is
that there are many di erent versions of proof-of-stake, and none of these have fully proven themselves yet. Nevertheless
the work on these algorithms o ers good hope for the future.
Energy consumption model and key assumptions
Even though the total network hashrate can easily be calculated, it is impossible to tell what this means in terms of energy
consumption as there is no central register with all active machines (and their exact power consumption). In the past, energy
consumption estimates typically included an assumption on what machines were still active and how they were distributed,
in order to arrive at a certain number of Watts consumed per Gigahash/sec (GH/s). A detailed examination of a real-world
Bitcoin mine shows why such an approach will certainly lead to underestimating the network’s energy consumption,
because it disregards relevant factors like machine-reliability, climate and cooling costs. This arbitrary approach has
therefore led to a wide set of energy consumption estimates that strongly deviate from one another, sometimes with a
disregard to the economic consequences of the chosen parameters. The Bitcoin Energy Consumption Index therefore
proposes to turn the problem around, and approach energy consumption from an economic perspective.
The index is built on the premise that miner income and costs are related. Since electricity costs are a major component of
the ongoing costs, it follows that the total electricity consumption of the Bitcoin network must be related to miner income as
well. To put it simply, the higher mining revenues, the more energy-hungry machines can be supported. How the Bitcoin
Energy Consumption Index uses miner income to arrive at an energy consumption estimate is explained in detail here, and
summarized in the following infographic:
6. Note that one may reach di erent conclusions on applying di erent assumptions. The chosen assumptions have been
chosen in such a way that they can be considered to be both intuitive and conservative, based on information of actual
mining operations. In the end, the goal of the Index is not to produce a perfect estimate, but to produce an economically
credible day-to-day estimate that is more accurate and robust than an estimate based on the e ciency of a selection of
mining machines.
Criticism and Validation
7. Over time, the Bitcoin Energy Consumption Index has been subject to a fair amount of criticism. Entrepreneur Marc Bevand,
who argues that there are serious faults in the way the Bitcoin Energy Consumption Index is calculated, is often quoted in
this regard. In his own market-based and technical analysis of Bitcoin’s electricity consumption Bevand argues that Bitcoin’s
real energy consumption is much lower (~18 terawatt hours/year per January 11, 2018) than the number provided by the
Bitcoin Energy Consumption Index. But this alternative approach, based on analysis of Bitcoin’s hashrate (computational
power), is not without controversy either. Morgan Stanley accurately captured the main problems in this approach in their
report “Bitcoin ASIC production substantiates electricity use” (January 3, 2018), explaining that “the hash-rate methodology
uses a fairly optimistic set of e ciency assumptions and may not allow enough for electricity consumption by cooling and
networking gear”. The impact of this can be signi cant, as becomes apparent from BitFury CEO Valery Vavilov’s earlier
comment that “many data centers around the world have 30 to 40 percent of electricity costs going to cooling” (40 to 65
percent relative to non-cooling electricity costs). It’s thus not surprising that a hash-rate based approach produces a lower
energy consumption estimate.
In the same report Morgan Stanley does argue that Bitcoin’s energy consumption must be at least 23 terawatt-hour per year
(per January 3, 2018). Morgan Stanley nds this number based on “Quartz’s report of its tour of the Bitmain mining data
center, equipped with the most recent 1387-based mining rigs, this past fall”. At the time, this data center was drawing 40
megawatts per hour and represented 4% of the global Bitcoin network capacity (6M TH/s). Morgan Stanley continues by
stating that “the Bitcoin network’s recent active hash rate has been ~15.2M TH/s, which implies total hourly Bitcoin electricity
consumption is well more than 2700 megawatts/hour (23 terawatt hours/year)”. The company also notes that a realistic
number is likely to be higher because “the most e cient mining rigs used by Bitmain in its facilities are not yet widely
available” (the Bitcoin Energy Consumption Index was showing ~37 terawatt hours/year on the same day). For this reason,
Morgan Stanley concludes that “current use estimates are probably in the right general range”.
Of course, the Bitcoin Energy Consumption Index is also very much a prediction model for future Bitcoin energy
consumption (unlike hashrate-based estimates that have no predictive properties). The model predicts that miners will
ultimately spend 60% of their revenues on electricity. At the moment (January 2018), miners are spending a lot less on
electricity. On January 25, 2018, the Bitcoin Energy Index was estimating just 22% of miner revenues ($2.2B versus $10.4B)
were actually spent on electricity costs. Based on this, the Energy Consumption Index would thus predict a possible energy
consumption of around 130 terawatt hours/year (assuming stable revenues). This increase appears to be in line with
expected miner production.
With regard to future energy consumption, Morgan Stanley estimates that Taiwan Semiconductor Manufacturing Company
“has Bitcoin ASIC orders for 15-20K wafer-starts per month for 1Q18”. With each wafer capable of supplying chips for “~27-
30 Bitcoin mining rigs”, the total Bitcoin mining pool “could see up to 5-7.5M new rigs added in the next 12 months” if “1Q18
production rates are maintained through 2018”. By the end of 2018, this means that “the Bitcoin network could potentially
draw more than 13,500 megawatts/hour (120 terawatt-hours/year)”, or even 16,000 megawatts/hour (140 terawatt-
hours/year) based on “90% utilization and 60% direct electricity usage”.
Altogether, it can be concluded that the relatively simple Bitcoin Energy Consumption Index model is supported by both
emprical evidence from real-world mining facilities, as well as Bitcoin ASIC miner production forecasts.
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8. Terawatt-hourperYear
2018 Bitcoin Energy Consumption Forecast
Projected Growth based on Energy Index Projected Growth based on ASIC Production
Jan '18 Mar '18 May '18 Jul '18 Sep '18 Nov '18
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Recommended Reading
The Bitcoin Energy Consumption Index is the rst real-time estimate of the energy consumed by the Bitcoin network, but
certainly not the rst. A list of articles that have focussed on this subject in the past are featured below. These articles have
served as an inspiration for the Energy Index, and may also serve as a validation of the estimated numbers.
Article Publish
Date
Estimated
TWh per Year
Bitcoin
Price (USD)
Network
Hashrate
(GH/s)
Watts per
GH/s
The bitcoin and blockchain: electricity
hogs
16/05/2017 0.00 1,709 4,528,107,889 0.00
Bitcoin Consumes A Lot 17/03/2017 0.00 1,155 3,401,461,767 0.00
Bitcoin Is Still Unsustainable 07/03/2017 0.00 1,187 3,368,788,274 0.00
Proof of Work Flaws: Ethereum Lays Out
Proof of Stake Philosophy
07/01/2017 0.00 909 2,397,564,011 0.00
An Unsustainable Protocol That Must
Evolve
01/01/2017 0.00 1,000 2,512,370,224 0.00
Bitcoin Could Consume as Much
Electricity as Denmark by 2020
29/03/2016 3.02 426 1,194,369,655 0.29
Bitcoins are a waste of electricity 05/10/2015 3.94 239 435,318,014 1.03
Bitcoin is Unsustainable 29/06/2015 1.87 249 353,633,397 0.60
How Much Power Does the Bitcoin
Network Use?
25/05/2015 3.00 240 342,934,450 1.00
Virtual Bitcoin Mining Is a Real-World
Environmental Disaster
12/04/2013 0.33 119 60,000 636.99
If you nd an article missing from this list please report it here, and it will be added as soon as possible.