Cardano, a Proof-of-Stake (PoS) blockchain, has been reported to be more energy efficient than tech giants including Paypal, YouTube, and Netflix (NASDAQ:NFLX) based on its energy consumption.
Cardano is More Energy Efficient than PayPal (NASDAQ:PYPL) and Netflix
The energy consumption of blockchain projects, especially Bitcoin, has been a hotly debated topic. To cut down energy consumption, Cardano adopted a decentralized proof-of-stake (PoS) blockchain.
According to Cardano Daily, a Cardano community-focused Twitter (NYSE:TWTR) account, the PoS project has been more energy efficient than many leading tech firms, including Paypal, YouTube, and Netflix.
Data from the Cardano explorer shows that the network runs on 3,198 pools, which puts its estimated yearly consumption at 3.103 GWh, or 0.0031 TWh.
According to data, Netflix streaming consumed around 94 terawatt hours (TWh) in 2021. YouTube’s annual consumption was pegged at 244 TWh year, while PayPal consumed 254,700 MWh (0.25 TWh) of electricity in 2019.
Proof-of-Work (PoW) Still Not Energy Efficient
The energy efficiency of PoS is in stark contrast with POW like Bitcoin. For example, the Bitcoin network uses 131 TWh annually, more electricity than Argentina, Holland and the United Arab Emirates
With the Ethereum mainnet migrating from PoW to PoS in September, the power consumption of Proof-of-Work is being debated as something that can be avoided, especially with the low consumption of PoS blockchains.
On the Flipside
- The much anticipated Cardano hard fork has been delayed multiple times as the Input Output Global (IOG) says it is one of the most complex upgrades it has undertaken to date.
Why You Should Care
By being energy efficient, PoS supports scalability, interoperability, and sustainability, while reducing the overhead and energy expenditure.
Read the latest about Cardano’s hard fork in:
Cardano’s Ecosystem Developer Says Testnet Is Now “Better Than Ever”
The energy consumption of Bitcoin has led to:
U.S. Lawmakers Look to Limit Energy Use of Crypto Mining Firms