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Valuechain just published a scientific research paper tackling the hard and hot topic of Bitcoin proof of work energy consumption. The paper corrects the Cambridge Bitcoin Electricity Consumption Index (CBECI) and introduces for the first time a benchmark of energy efficiency compared to classical monetary and payment system.
Bitcoin introduced a cryptographic peer-to-peer version of money that allows online payments to be sent directly from one party to another without going through a financial institution. Many recent studies evaluated and criticised Bitcoin’s energy consumption through its Proof of Work (PoW) consensus mechanism without evaluating its efficiency compared to classical electronic payment system.
Based on physics, information science and economics, we compute and compare the energy consumption and define what is the energy efficiency of both the current monetary payment system and Bitcoin cryptopayment system. We demonstrate that Bitcoin consumes 56 times less energy than the classical system, and that even at the single transaction level, a PoW transaction proves to be 1 to 5 times more energy efficient. When Bitcoin Lightning layer is compared to Instant Payment scheme, Bitcoin gains exponentially in scalability and efficiency, proving to be up to a million times more energy efficient per transaction than Instant Payments.
👉🏻 Download Valuechain research paper in English 🇺🇸 here at SSRN via this link
👉🏻 Download Valuechain research paper in french here 🇫🇷
Keywords: Bitcoin, Payments, Money, PoW, cryptocurrency, banking, CIT, energy, energy efficiency, Instant, Lightning, Blockchain
Bitcoin Magazine published an article about Valuechain paper titled : "IT IS TIME TO TURN THE TABLES ON THE BITCOIN ENVIRONMENTAL DEBATE" -- Bitcoin’s infamous energy criticism is misguided as mounting research shows the exact opposite of those claims are true. by MARIE POTERIAIEVA
The Nasdaq published a full article about the paper titled "Bitcoin Uses 50 Times Less Energy Than Traditional Banking, New Study Shows"
"Payment consultancy firm Valuechain published the 27-page white paper titled "Bitcoin: Cryptopaments Energy Efficiency" after conducting four years' worth of research and data compilation."
"These data serve as reliable, supercharged counter measures that should erode anti-BTC sustainability biases, while bolstering Bitcoin's reputation as a "net good" in pursuit of net zero emissions going forward."
cryptotvplus published an article about the paper results "Bitcoin Energy Consumption
is Less than 2% of Traditional Banking"
A brief German version of the paper is available at blocktrainer.de thanks to Rene
New study shows: Bitcoin consumes 56x less electricity than traditional finance!
Brussels Blockchain Week relayed the paper BITCOIN: CRYPTOPAYMENTS ENERGY EFFICIENCY and will cover at the event “What Solutions does blockchain provide in the ESG sector?”