Ethereum’s (ETH) energy consumption will drop dramatically as it moves from mining to staking. Staking is a form of passive income that does not require hardware. Consumption will decrease by more than 99% after the transition to proof-of-stake (PoS), as stated in a blog post by Carl Beekhuizen of the Ethereum Foundation.
Energy consumption in figures
What exactly does this mean? And how do the numbers compare with those of Bitcoin (BTC)?
According to an estimate by Beekhuizen, there would be about 87,000 ethereum home strikers. They would each account for about 100W consumption, which equates to a total of ~ 1.64 megawatts. In addition, there are some 53,000 exchanges and other services that account for a consumption of around 0.98 megawatts.
So, based on these estimates, Ethereum would have a power consumption of about 2.62 megawatts when it makes the switch to strike. It should be noted that Beekhuizen thinks his estimates are even too high, but for now the above figures are a realistic assumption.
To give you an idea: Ethereum’s mining-based energy consumption is equivalent to that of a large city or even a small country. For example, it was already known that mining BTC uses more energy than the whole of the Netherlands. With the switch to strike, this would only equate to a village with 2,100 houses.
How does that relate to Bitcoin?
The report made it clear that Ethereum’s “proof-of-stake” network would be about 7,000 times more efficient than Bitcoin, as reflected in a tweet from Carl Beekhuizen below:
After Elon Musk said in a tweet that Tesla has stopped accepting BTC as a means of payment, the market has fallen sharply. The reason Tesla has stopped is the high energy consumption that bitcoin mining entails.
The issue of energy consumption is one that has been around for some time. With the switch, Ethereum wants to reduce consumption, but also make the network faster and more scalable. In addition, they mainly want to be transparent and open up with regard to the consumption figures. Strike will always entail energy consumption, but with a reduction of 99%, this is a very nice step towards a sustainable future for Ethereum.