Energy consumption refers to the amount of power utilized by computing hardware and infrastructure to operate and maintain a blockchain network, particularly for Proof-of-Work consensus mechanisms. This metric is a key environmental consideration, as significant electrical power is expended in solving complex cryptographic puzzles to validate transactions and secure the ledger. High energy usage raises questions about sustainability and ecological impact.
Context
Energy consumption is a highly debated topic in crypto news, especially concerning Bitcoin mining and its environmental footprint. Reports often highlight the carbon emissions associated with mining operations and the shift towards more sustainable energy sources. The transition of major blockchains to Proof-of-Stake, which requires substantially less energy, is a critical development influencing public perception and regulatory discussions around the digital asset sector’s ecological impact.
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