Why Bitcoin miners don’t want to adjust their energy consumption – Época Negócios

The Bitcoin network consumes more and more energy. These expenditures rose from 200 terawatt-hours (TWh) per year in early 2022 and are comparable to those of entire countries such as Thailand and South Africa. New and growing demand is making it difficult to clean up the global energy mix, which will be necessary to meet the climate emergency.

The carbon footprint of the Bitcoin network alone has tripled in the past two years. Humanity is celebrating the progress of electric cars, which, by replacing fossil-fueled vehicles, have prevented the emission of 50 million tons of carbon dioxide. But that’s less than half of what the Bitcoin network issues annually, currently, the site warns. Conversation.

Hence, calls for a more energy-efficient solution to bitcoin are growing. Environmentalists, including NGOs such as Greenpeace and the Environmental Working Group, are leading a campaign called “Change the program, not the weatherThey claimed that the problem could be easily fixed by updating the bitcoin code, which would reduce network power consumption by 99.9%. Binance, to promote the change.

we will, This will not happen, warns Peter HowsonProfessor of International Development, Northumbria University, UK.

The Bitcoin network operates through Proof of Work (PoW). Computers that give their power to process network transactions (ie, provide a service to all bitcoin holders) are rewarded with new bitcoins. In this system, the only incentive for each network participant is to process more and more transactions, use more and more processing power, and consume more and more power. In theory, the network can operate through Proof of Stake or PoS. In this system, computers that process transactions for the network have to risk their bitcoins. There is an incentive to save processing power and energy. Other blockchain networks such as Cardano, EOS, and Tron use PoS. In these cryptocurrencies, dozens of computers are enough to do the work of millions on the Bitcoin network.

But researcher Peter Howson points out that changing the software, while relatively simple, requires upgrading the entire Bitcoin network. The holders of this cryptocurrency will feel threatened. “There is no desire among bitcoiners to destroy the security of the protocol by making this change,” says Chris Bendixen, an analyst at CoinShares. Doubts about the change also come from the fact that the “Change the software, not the climate” campaign is backed by Chris Larsen, the co-founder of the cryptocurrency Ripple, the Bitcoin rival.

Howson worked directly with the Bitcoin community. “My research indicates that effective Bitcoin regulation will not come from calls from NGOs. A coordinated, government-led global ban (of Proof of Work mining) is likely to be the most effective solution.”