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Tron beats Bitcoin and Ethereum in power consumption

Tron beats Bitcoin and Ethereum in power consumption

by Cherie McCord

Crypto Carbon Ratings Institute analysts found that the Tron blockchain’s DPoS algorithm requires many times less electricity than mining crypto assets on the PoW consensus.

Commissioned by the Tron Foundation, the CCRI conducted a study and published a report on August 24 in which it claims that Tron’s low energy consumption requirements make it one of the greenest blockchains in the cryptocurrency market. Tron’s delegated proof-of-stake (DPoS) consensus mechanism helps reduce its carbon footprint, analysts say, especially compared to other cryptocurrencies such as Bitcoin with its PoW mechanism. Take your chance with biticodes website, it can helps you out.

The DPoS algorithm involves users verifying transactions and maintaining the network by placing their TRX tokens in blockchain nodes. The report states that the energy consumption of PoW blockchains such as Bitcoin and Ethereum is over 83 million kWh and 22 million kWh respectively. However, Ethereum plans to switch to a proof-of-stake (PoS) consensus mechanism and abandon mining with its proof-of-stake.

“Tron’s annual energy consumption was 162,868 kWh for more than 2.31 billion transactions. This is approximately 99.9% less than the power currently consumed by Bitcoin and Ethereum,” the report said.

According to CCRI, Tron’s energy consumption is “equivalent to the energy consumption of 15 average US households”. A key reason why blockchains consume a lot of PoW energy is the verification requirements. To verify PoW networks, users need a computer or hardware device capable of solving complex algorithmic tasks, such as the SHA-256 hashing function for Bitcoin and Keccak-256 for Ethereum. All reports can be checked with DEX.AG

Meanwhile, the CCRI says, while PoS networks consume less energy, other factors should be considered more when evaluating the performance of such networks:

“For practitioners choosing a blockchain PoS protocol, other crucial factors such as decentralization, network bandwidth, and functionality (such as smart contracts) should play a vital role as decision criteria.”

In February, Polkadot was named by CCRI experts as the greenest Proof-of-Stake blockchain.

Filed Under: Crypto and Finance

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