Web3CO2

A Synthesis of Current Research

The sustainability of Bitcoin and its impact on energy consumption has been the subject of extensive research. Pioneering studies have provided a spectrum of insights, from evaluating Bitcoin’s carbon footprint to dissecting the energy dynamics of its mining processes. These investigations, though varied in approach, converge on a critical theme: the selection of mining equipment is a significant determinant of a network’s power usage.

At WEB3CO2.com, we build upon the collective findings from seminal works by researchers such as Stoll et al., who quantified Bitcoin’s environmental load, and O’Dwyer and Malone, who gauged the energy footprint attributable to Bitcoin mining. These studies shed light on the challenges of accurately modeling the energy consumption profiles of cryptocurrency networks, given the diverse mix of mining hardware in use.

Exploring Bitcoin's Evolution: MNP's Insightful Analysis on the Original Protocol and the Quest for Efficiency

MNP, one of Canada’s leading professional services firms, offers a deep dive into Bitcoin’s origins and efficiency in their insightful articles.

For a more detailed exploration, you can read their insights on The Original Bitcoin Protocol and The Search for a More Efficient Bitcoin.

The Search for a More Efficient Bitcoin
The “Blockchain Technology Energy Consumption Report” by MNP offers a detailed analysis of energy consumption across different Bitcoin protocols, namely Bitcoin Core (BTC), Bitcoin Satoshi Vision (BSV), and Bitcoin Cash (BCH). Conducted between June 8 and July 29, 2021, the report evaluates power consumption efficiency, comparing kilowatt hours consumed per block across these blockchain networks. It includes a comprehensive review of mining equipment efficiency, methodologies for estimating energy consumption, and interviews with key stakeholders to validate the findings. The report aims to provide a transparent framework for assessing the energy efficiency of SHA-256 blockchains.

The Original Bitcoin Protocol: What Is It and Why Does It Matter?
The Original Bitcoin Protocol is an insightful document prepared by MNP, dated August 25th, 2021. It aims to discern which current Bitcoin implementation aligns most closely with Satoshi Nakamoto’s original vision. Utilizing source material like Satoshi’s writings, the whitepaper, and original code, it evaluates the Bitcoin Core (BTC) and Bitcoin Satoshi Vision (BSV) implementations against the original protocol. The report presents a thorough comparison, highlighting BSV as most representative of Satoshi’s intent, and discusses the implications of aligning with this original vision.

Additional Research

Cambridge Bitcoin Electricity Consumption Index
The Cambridge Bitcoin Electricity Consumption Index (CBECI) provides updated data on the power demand of the Bitcoin network. It includes estimates for the theoretical lower and upper bounds of power usage, as well as an estimated value. These figures are updated every 24 hours and are based on a 7-day moving average to account for short-term volatility. The website also offers historical data on Bitcoin mining hardware efficiency. For detailed information and to download the data, you can visit the CBECI website here.

Bitcoin Energy Consumption Index
The Bitcoin Energy Consumption Index on Digiconomist provides a comprehensive analysis of the energy consumption and environmental impact of the Bitcoin network. It offers up-to-date estimates of Bitcoin’s total energy use, comparing it to countries and other payment systems. The site also explores sustainability challenges and alternatives, emphasizing the significant energy demand of Bitcoin mining and its reliance on fossil fuels. For an in-depth understanding of Bitcoin’s environmental footprint, visit Digiconomist’s Bitcoin Energy Consumption Index.

A Comprehensive Approach to Blockchain Energy Efficiency
The paper A Comprehensive Approach to Blockchain Energy Efficiency by Bryan Daugherty and Gregory Ward (May 4th, 2023) introduces innovative formulas to evaluate energy consumption, transactional throughput, and mining efficiency in blockchain networks. It aims to balance technological advancement with environmental sustainability in the blockchain sector. The book proposes an energy efficiency reporting and rating system, modeled after the EPA’s emission standards, to encourage sustainable practices without stifling innovation. The paper is a valuable resource for those interested in the intersection of blockchain technology and environmental responsibility.

The Next Era in Miner Economics: Embracing Coopetition and Infrastructure
The Next Era in Bitcoin Miner Economics is an paper that delves into the evolving landscape of blockchain mining, particularly focusing on Bitcoin SV (BSV). It explores topics like the current state of miner economics, the role of infrastructural innovation, and the implications of larger block sizes in BSV for environmental sustainability and efficiency. The eBook discusses the shift in miners’ revenue sources from block subsidies to transaction fees, the concept of ‘coopetition’ in mining, and the potential future trajectory of the mining industry. This comprehensive guide offers insights into the future of mining economics, aligned with the original vision of Bitcoin’s creator.

Mastering Blockchain Economics: Analyzing Transaction Fee Structures in Bitcoin and BSV
Mastering Blockchain Economics is an insightful eBook that takes you on a deep dive into the world of cryptocurrency, focusing on the transaction fee structures of Bitcoin (BTC) and the BSV blockchain. Authored by industry luminaries Bryan Daugherty, Brendan Lee, Kurt Wuckert Jr., and Gregory Ward, this second installment in the Miner Economics series offers a comprehensive analysis of key aspects shaping blockchain economics. The eBook explores the validation process of transactions, the intricacies of fee calculation, and introduces an innovative classification system for BSV transaction fees. It also examines the impact of these fee structures on network security and the viability of microtransactions in both BTC and BSV ecosystems. This guide is an essential resource for anyone looking to understand the complex dynamics of blockchain transaction fees and their implications on the digital economy.