Energy Consumption & Sustainability
The energy debate surrounding Blockchain in general and Proof of Work (PoW) blockchains like Bitcoin and Ethereum n particular, is nothing new. Based on the findings from Cosmos, we will look at Energy Consumption of different blockchains and Baseledger's take on that.

Blockchains need to come to consensus over how to validate new blocks that are added to the chain. This means that, in order to prevent fraudulent transactions, double spends, or other errors, there must be a mechanism in place that allows network nodes to agree on the accuracy of each new block before it is added to the chain.
Proof of Work is the original consensus method adopted by the Bitcoin blockchain in order to achieve this. In a Proof of Work system, miners compete to solve complex mathematical equations to add new blocks to the chain. The first miner to solve the equation receives a block reward which consists of newly minted Bitcoins (BTC) and a share of the transaction fees generated by the network. Once the answer is found by a miner, it can be easily verified by the rest of the network, and the new block is then added to the existing chain of previous blocks.
The (main) problem with Proof of Work is the high amount of computational power required to solve the mathematical equations and secure the network. For some perspective, running the Bitcoin network for one year uses approximately the same amount of energy as the Netherlands or Argentina.

Proof of Stake, the consensus method that Baseledger is built on, is a different blockchain consensus model that is infinitely more energy-efficient than Proof of Work. Proof of Stake uses validators rather than miners to validate transactions and verify the accuracy of new blocks to be added to the existing chain. Rather than having to solve mathematical puzzles by lending the most computational power to the network, in a Proof of Stake model, validators (rather than miners) validate based on how much of the cryptocurrency they own (their ‘stake’).
The more of a cryptocurrency the validator stakes, the more mining capacity they have. This means that, in Proof of Stake, validators validate the percentage of transactions equal to the stake of their holdings. So, for example, if a validator has 2% of crypto assets staked or delegated to them on a network, they can only validate 2% of the blocks, keeping the system distributed and, at the same time, removing the need for vast amounts of energy to solve equations.

Baseledger solves the problem of high energy consumption by using a Proof of Stake consensus mechanism relying on the Tendermint Core engine that achieves high performance with a low carbon footprint.
The current estimated annual energy consumption (measured in TWh) of running the Bitcoin network for a year is 121.86 TWh, while Ethereum consumes around 52.27 TWh per year. By comparison, the estimated yearly consumption of a Cosmos-based blockchain is 0.00046647 TWh.*r56Ur5kIOMYEZImu
Ethereum developers realized this early on and have been on a lengthy path to transition to Proof of Stake for some years now. Evidence suggests that the switch will pay dividends as far as the environment is concerned. According to recent research from the Ethereum Foundation, ETH 2.0 will consume more than 99.95% less energy than its current PoW consensus.
Baseledger, utilized as a "Layer 1.5" or Layer 2 solution supports consensus with a low carbon footprint:
The future development of blockchains is clear. If we want a greener environment while fostering innovative technology, we must adopt sustainable solutions like Proof of Stake used by Baseledger, blockchain interoperability, and carbon offsetting.
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Proof of Work
Proof of Stake
How Proof of Stake Solves the Energy Issue