Although blockchain technology has become mainstream, there are still many issues that need to be addressed. If one wants to see a blockchain-based decentralized economy and social future, they must consider traditional IT as well. This is only possible if a blockchain works at the same efficiency (or better) as traditional IT.
Only the Internet Computer can reimagine the whole IT stack using the Blockchain Trilemma metrics, as well as important environmental parameters such energy consumption. The Internet Computer’s main objective is to offer a public computing layer that can replace traditional IT. The Internet Computer, a Blockchain network, is naturally concerned that it will lead to an increase in energy consumption. It is not only faster than traditional blockchains in its current stage of development but it also has a higher efficiency level than traditional IT. The two largest blockchain platforms, Bitcoin & Ethereum (both Proof of Work platforms), have been under increasing scrutiny for the negative environmental impacts of their mining operations. According to data from Digiconomist’s Bitcoin Energy Consumption Index, Bitcoin (the world’s most popular cryptocurrency) has a carbon footprint that is almost equal to New Zealand. Both emit nearly 37 megatons annually, according to CNBC. The digital art assets of the arts are seeing a boom thanks to Ethereum smart contracts. These NFTs (a form of guaranteed backed by blockchain) have been around for a while. The carbon footprint is also becoming an issue due to increased adoption.
According to Digiconomist, the Ethereum transaction’s carbon footprint was 102.38 kg of CO2 as December 2021. This is equivalent to 226,910 VISA transactions and 17,063 hours spent watching YouTube. Next came Proof-of-Stake Blockchains, which claim that individual transactions consume very little energy. Cardano says it consumes just 0.55 kWh per transaction while Solana uses 0.00051kWh. Each of these blockchains, however, outsource storage and hosting to central servers. This is in contrast with the Coincodex report. This computer uses enough energy for 200,000 homes. What makes the internet computer so efficient? Advanced cryptography powers the Internet Computer in a way that is different from other blockchains. The network can be used to limit data replication and computation while still providing security and liveness expected from a blockchain. This is a crucial guarantee blockchains offer. Replication is what determines how much energy you use.
This is how many machines are running the same calculation. Internet Computer networks use replication in conjunction with advanced cryptography to make a secure platform that is more reliable than traditional IT. It also makes replication more efficient than other blockchains. Replication is often a key component of traditional IT platforms. This makes them less efficient.
The Internet Computer’s main objective is to create a platform for public computing that makes it easier to develop systems and services. Although The Internet Computer has impressive performances today, it is expected that the IC’s energy consumption will be lower in the future. Think of a world without big tech companies dictating our daily lives. Where the decision-making power is in users’ hands and not one board. A place where trust and transparency replace the archaic economic system. […]