A blockchain platform completed a radical shift in September 2022 that dropped its electricity usage to nearly zero, Outlook India reported.
Ethereum’s upgrade, named The Merge, ditched its energy-hungry mining system for a leaner verification process. The network previously burned through 23 million megawatt-hours each year. After the transition, yearly consumption fell to 2,600 megawatt-hours, shrinking from a small country’s draw to what a handful of office towers might use.
Before The Merge, Ethereum relied on mining. Thousands of machines worldwide competed to crack mathematical equations, with only one winner receiving payment while the rest wasted electricity on failed attempts. This Proof-of-Work system still runs Bitcoin.
Ethereum switched to Proof-of-Stake, where users deposit their coins to validate transactions rather than running power-hungry equipment. Standard computers can now join the validation process, eliminating the need for costly mining hardware.
Carbon output dropped from 11 million tons yearly to 870 tons. Individual transactions now generate less than one-hundredth of a kilogram of CO2, compared to over a hundred kilograms previously.
Cryptocurrency’s climate connection is messy. Bitcoin and other mining-dependent networks consume a ton of electricity, drawn from fossil fuel facilities in many cases. This has turned crypto into a lightning rod for climate criticism.
But the field backs clean energy growth. Many crypto mining facilities now operate using renewable sources such as sun, wind, and hydropower. Some miners help fund green energy projects by buying electricity that grids cannot use.
Ethereum’s shift shows the sector can shrink its carbon footprint when motivated. Whether competing blockchain networks will make similar moves or cling to electricity-intensive designs remains an open question.
The transition expanded who can help secure the network outside of people who are wealthy enough to buy mining gear. App developers working on Ethereum can now call their products climate-friendly, a claim that wasn’t available before.
This change shows what digital networks can accomplish when they put efficiency first.
💰Get TCD’s free newsletters for easy tips to save more, waste less, and make smarter choices — and earn up to $5,000 toward clean upgrades in TCD’s exclusive Rewards Club.
