The Tron network’s low power requirements make it one of the most environmentally friendly Blockchains, according to a report released on Wednesday by the Crypto Carbon Ratings Institute (CCRI). CCRI is a research organization dedicated to reducing carbon emissions in Cryptocurrency projects.
According to the report, Tron’s delegated proof-of-stake (DPoS) consensus mechanism contributed to its lower carbon footprint when compared to other mechanisms like Bitcoin’s proof-of-work (PoW). DPoS is based on users staking their native TRX tokens to nodes, which validate transactions and keep the network running.
The Tron Foundation, which creates and maintains the Tron Blockchain, commissioned the report. CCRI monitors over 20 networks and publishes reports on their long-term viability and overall environmental impact, which is a concern pointed out by several Crypto skeptics.
PoW Blockchains, like Bitcoin and Ethereum, consume over 83 million kilowatt-hours (kWh) and 22 million kWh, respectively. However, after “The Merge,” Ethereum is set to switch to a proof-of-stake consensus mechanism in mid-September.
In comparison, Tron consumed 162,868 kWh of energy per year for over 2.31 billion transactions, or approximately 99.9% less than Bitcoin and Ethereum. According to the CCRI, Tron’s energy utilization is “equal to the energy utilization of 15 average US households.”
The validation requirements of PoW Blockchains are a major reason for their high energy consumption.
To validate PoW networks, users require a computer or hardware device capable of solving complex algorithmic problems, like the SHA-256 hashing function with Bitcoin and Keccak-256 with Ethereum, utilizing powerful computers that consume a significant amount of power to run, maintain, and cool.
As a result, according to a previous CCRI report, Blockchain network Polkadot has the lowest carbon footprint, with Cardano utilizing the least energy per node per year and Solana using the least electricity per transaction.
Meanwhile, CCRI stated that because PoS networks utilize so little energy, other factors should be considered more when evaluating them.
Other factors like decentralization, network throughput, and functionality (e.g., smart contracts) should be important decision criteria for practitioners when choosing a PoS Blockchain protocol, according to the research body.
