From Proof-of-Work to Proof-of-Authority: How Carbon Grid Decarbonises Blockchain

For all its benefits and forward-facing applications, blockchain comes with a heavy cost: high carbon footprint and an enormous impact on the environment, brought about by energy-inefficient methods to verify and validate transactions. Carbon Grid Protocol aims to solve all that with the decarbonising of blockchain.

Carbon Grid works towards governance, performance, stability and carbon efficiency as an industry-focused protocol, designed to reduce the volume of carbon emissions in blockchain networks. It will adopt the Proof-of-Authority consensus model, a straightforward and efficient form of Proof of Stake with known validators and governance-based penalty system.

The current Proof-of-Work consensus model used on blockchains has an incredibly high carbon footprint because a given block requires a certain amount of work to be mined. it requires users to maintain nodes to solve hashes. Add on the fact that there are many, active nodes solving the same hash, the result of this is a large carbon footprint.


Ethereum and Bitcoin currently use the Proof-of-Work consensus model. Each transaction requires more than 78 kilowatts-hour and a megawatt-hour per transaction, respectively. The energy usage of one Ethereum transaction can power a 10,000 watt electric shower for 7 hours and 48 minutes, whereas the energy usage of one Bitcoin transaction can power 330 homes in one hour.

Ethereum is transitioning to the Proof-of-Stake consensus model, which eliminates the need to spend a huge amount of electric power to validate the blocks. Instead, blockchain participants with the most stake in it are selected by algorithm for the right to validate the blocks. While it is more efficient than the Proof-of-Work consensus model, its carbon footprint is still higher than centralised digital transaction solutions like VISA.


Carbon Grid Protocol’s Proof of Authority (PoA) algorithm is a straight-forward and efficient form of Proof-of-Stake with known validators and governance-based penalty system. Carbon Grid uses authority nodes from at least 12 leading organisations in the emission reduction and carbon-related fields to regulate the network as well as consensus model nodes to vote and determine the consensus model order of the transactions. It can operate with other blockchains, and complement DApps and projects built on existing blockchains in the market, maintaining their vision to build a carbon neutral world.


Identity placed at stake can serve as a great equaliser, understood and valued the same by all actors. Individuals whose identity (and reputation by extension) is at stake for the securing of a network are incentivised to preserve the network. In addition, a governance-based penalty system will be enforced and executed automatically using smart contracts.

The application of the Proof-of-Authority consensus model prevents prevent consolidation of power over consensus. At the same time, it will empower the community to push initiatives or transactions forward. Community members can also be part of the voting committee by staking CGRID tokens.

The Proof-of-Authority consensus model removes the “wasted mining” that is native to the Proof-of-Work consensus model. This, along with volume-scaling emission offset fees, will ensure work towards carbon neutrality for projects, businesses and investors on the network. With this approach, the Carbon Grid Protocol works towards the construction of a decentralised mechanism that allows a native community-driven approach while focusing on meeting the regulatory and accreditation requirements for the carbon market and industries supporting the combat against climate change.

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