Ethereum cuts greenhouse gas emissions by more than 99% after PoS shift, CCAF says

Cambridge said Ethereum uses about 7.87 GWh a year after the Merge, with electricity use down more than 99.9% and market-value-adjusted energy intensity among the lowest of the proof-of-stake networks studied.

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Summary

Ethereum reduced its greenhouse gas emissions by more than 99% after switching to proof-of-stake, according to a study from the Cambridge Centre for Alternative Finance. Cambridge estimated the network now uses about 7.87 gigawatt-hours of electricity annually after the Merge in September 2022, cutting electricity use by more than 99.9% from its proof-of-work era. The report said Ethereum’s electricity consumption fell to less than one-30,000th of the banking system and placed the network near the low end of energy intensity among major proof-of-stake blockchains, at roughly 33 kilowatt-hours per $1 million of market value, second only to BNB Chain in the group assessed.

Terms & Concepts
  • proof-of-stake: Blockchain validation method using staked tokens instead of energy-intensive mining.
  • The Merge: Ethereum’s September 2022 transition from proof-of-work mining to proof-of-stake validation.
  • CCAF: The Cambridge Centre for Alternative Finance, a research center that studies digital asset impacts.