The Role of the Internet Computer in Ensuring a Greener Blockchain Ecosystem
In the automobile industry today, many people advocate for electric vehicles over gasoline and diesel-powered ones. The reason? Because they consider them more environmentally friendly.
In the blockchain industry too, concerns about the environmental impact of the underlying hardware used to power blockchains have risen. Interestingly, concerns in the blockchain industry often center on reducing the electricity consumption utilized by node machines to power blockchain operations. Bitcoin and Ethereum were originally built using a proof-of-work (PoW) consensus mechanism, however, this approach, as many observers agree is not energy efficient.
After years of planning and research, on September 15, 2022, Ethereum by means of The Merge transitioned to a proof-of-stake (PoS) consensus mechanism.
In this article, we’ll look at the Internet Computer’s environmental impact, shedding light on how this blockchain’s consensus mechanism contributes to a greener blockchain ecosystem.
As can be seen from the tweet below from Dfinity, a major contributor to the Internet Computer Protocol, the Internet Computer boasts about using Proof of Useful Work (PoUW) — a unique consensus mechanism different from those used by the Bitcoin and Ethereum networks. Why the change?
One reason for this change from the status quo as commented on earlier is the fact that Bitcoin and Ethereum networks have faced criticism for using Proof of Work (PoW), an energy-intensive and less environmentally-friendly consensus mechanism.
In PoW-based blockchains like Bitcoin and Ethereum, miners compete to solve complex mathematical puzzles, consuming vast amounts of computational power and electricity. In this process, rewards are tied to the work done by the electric-consuming node machine hardware.
Although PoS systems eliminate much of the energy concerns of PoW, a sort of centralization risk is present here, since virtual node machines running on centralized servers with the required stake of tokens/coins can be on-boarded onto the network.
According to the IC technical documentation, it is because of these reasons that it chose not to use any of both approaches (PoW or PoS). It uses a novel consensus mechanism called “Proof of Useful Work” instead, which drastically reduces energy consumption and environmental impact while maintaining security and decentralization.
How does proof-of-useful work (PoUW) actually work?
The Internet Computer’s Proof of Useful Work consensus mechanism uses chain-key cryptography, to create a more greener consensus mechanism. The proof-of-useful-work consensus mechanism on the Internet Computer (IC) is controlled by the Network Nervous System (NNS).
By means of this NNS, the IC is able to control the configuration of the software used by specific standardized hardware node machines in different locations across the world. This process also ensures that nodes are selected to create blocks based on cryptographic randomness, rather than by competing through energy-intensive processes like we have in PoW.
How has proof-of-useful-work reduced the Internet Computer’s digital carbon footprints?
Based on data available on Carbon Crowd, a live dashboard used to track the Internet Computer’s carbon emissions, the cumulative carbon emissions on the Internet Computer is currently around 953,249 kgCO2e (kilograms of Carbon Dioxide). In layman’s terms, the energy consumption of the IC amounts to the energy required in an entire year to power 120 homes based in the United States.
The Internet Computer’s green approach to blockchain technology makes it one of the most sustainable blockchains today. This has led to significant environmental benefits which include but are not limited to:
1. Lower Energy Consumption
The energy-efficient consensus mechanism consumes far less energy than PoW-based systems, contributing to a smaller carbon footprint.
2. Carbon Neutrality
By minimizing energy consumption, the Internet Computer blockchain can aspire to become carbon-neutral or even carbon-negative, actively mitigating its environmental impact.
3. Scalable Sustainability
The Internet Computer’s scalable architecture ensures that sustainability remains a core feature as the network grows. Sustainability isn’t sacrificed in the pursuit of expansion.
4. Pioneers Sustainable Innovation
The Internet Computer appears to be setting an example for the blockchain industry by demonstrating that cutting-edge technology and environmental responsibility can coexist.
Note: For a more detailed overview of the Internet Computer’s approach to ensuring sustainability, read a report published in October 2022 here.
Conclusion
Could a future where blockchain technology would exist without compromising the planet’s well-being be possible? Our article has shown us the Internet Computer’s green approach to blockchain and how it is making an effort to achieve this goal. Although other blockchains are working towards a more sustainable planet, the Internet Computer leads the way, demonstrating that blockchain innovation can occur without seriously compromising the planet’s well-being.
The article series continues. In our next article in the series, we will be looking at some use cases of the Internet Computer in Enterprise Solutions. Until then, we say thank you for reading. Please feel free to leave your comments in the comments section.
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Disclaimer: The information presented in this piece is merely for educational purposes only, it contains the viewpoint of the author and does not constitute investment advice. Readers are kindly advised to do their research on the subject and are free to disagree with the viewpoints shared by the author here. Thank you.
