Cryptocurrency; distributed ledger technology; energy demand; proof-of-stake
Abstract :
[en] The awareness of Bitcoin's problematic electricity consumption has carried over to the underlying technology as a whole, leading to a widespread and controversial discourse on the sustainability of blockchain networks that still reveals knowledge gaps. In this paper, we conduct a systematic analysis to identify the scientific body of knowledge on key components and factors that impact blockchain electricity consumption. We find that most research so far has focused on Bitcoin and proof-of-work-based cryptocurrencies, with less attention given to blockchain networks that operate with far less electricity-intensive consensus mechanisms or employ emerging scaling solutions. Building on a systematic literature review and additional explorative and inductive reasoning, we present a comprehensive list of determining factors of blockchain electricity consumption and discuss how they are interconnected. Our research structures methodologies and parameters for measuring the electricity consumption of blockchains and identifies important gaps and avenues for future research.
Research center :
Interdisciplinary Centre for Security, Reliability and Trust (SnT) > FINATRAX - Digital Financial Services and Cross-organizational Digital Transformations NCER-FT - FinTech National Centre of Excellence in Research
Disciplines :
Management information systems Computer science
Author, co-author :
Gramlich, Vincent; University of Bayreuth ; Frankfurt University of Applied Sciences ; Branch Business & Information Systems Engineering, Fraunhofer FIT
Guggenberger, Tobias; FIM Research Center, University of Bayreuth ; Branch Business & Information Systems Engineering, Fraunhofer FIT
Paetzold, Felix; FIM Research Center, University of Bayreuth ; Branch Business & Information Systems Engineering, Fraunhofer FIT
SCHÖNRICH-SEDLMEIR, Johannes ; University of Luxembourg > Interdisciplinary Centre for Security, Reliability and Trust (SNT) > FINATRAX
Strüker, Jens; FIM Research Center, University of Bayreuth ; Branch Business & Information Systems Engineering, Fraunhofer FIT
External co-authors :
yes
Language :
English
Title :
Toward a Holistic Perspective on Blockchain Electricity Consumption
FNR16326754 - Privacy-preserving Tokenisation Of Artworks, 2021 (01/06/2022-31/05/2025) - Gilbert Fridgen FNR14783405 - Fintech/Regtech In Space For Trustful Autonomous Robotic Interaction, 2020 (01/07/2021-30/06/2024) - Gilbert Fridgen
Funders :
FNR - Luxembourg National Research Fund Banque et Caisse d’Épargne de l’État, Luxembourg (Spuerkeess) Directorate-General for Financial Stability, Financial Services and Capital Markets Union (DG FISMA) Bavarian Ministry of Economic Affairs, Regional Development and Energy
Funding text :
his research was funded in part by the Bavarian Ministry of Economic Affairs, Regional Development and
Energy through the project “Fraunhofer Blockchain Center (20-3066-2-6-14)” and the Luxembourg Na-
tional Research Fund (FNR) in the FiReSPArX (grant reference 14783405) and PABLO (grant reference
16326754) projects, as well as Banque et Caisse d’Épargne de l’État, Luxembourg (Spuerkeess) and the
Directorate-General for Financial Stability, Financial Services and Capital Markets Union (DG FISMA). For
the purpose of open access, and in fulfilment of the obligations arising from the grant agreements, the au-
thors have applied a Creative Commons Attribution 4.0 International (CC BY 4.0) license to any Author
Accepted Manuscript version arising from this submission
