Proof of Work has gotten a bad rep over the past few years as mining firms have grown along with the environmental ramifications. As the CEO of a blockchain studio, I have struggled with the environmental impact of the miners.

I am personally responsible for the creation of many blocks across many chains. Whether we’re minting NFTs, creating smart contracts, or developing a dapp, the Studio has done a lot of work across the blockchain arena.

But we also know first-hand that mining creates a super-secure environment for the transactions – security is the bottom line of blockchain transactions, after all. So, I wanted to find out for myself: is mining going anywhere? Is Ethereum 2.0 marking a shift in a new direction?

Here’s what I discovered.

To what extent is Proof of Work really impacting the environment?

The headlines might not be lying this time around. As we move towards a common goal to save the planet, reduce pollution and go green, Proof of Work falls into the pollutant field. In this case, numbers do speak for themselves. Reports show staggering figures, with energy consumption surpassing that of entire states. And not small ones.

Proof of Work is utilized by the great Bitcoin, the second runner-up, Ethereum, Bitcoin Cash, Litecoin, etc. If we know that the biggest volume of transactions comes from Bitcoin and Ether mining, you can only imagine the environmental impact coming from the immense computing power required. Actually, you don’t have to imagine. Here are the numbers.

Studies show that Bitcoin mining alone consumes seven times Google’s total electricity usage. Let’s look at it from another angle. Bitcoin uses 122.87 Terawatt-hours yearly; that’s more than The Netherlands, Argentina, and UAE. But they are not combined, each. Ethereum takes second place by consuming 99.6 Terawatt-hours, more than Belgium, the Philippines.

When we translate this into carbon dioxide emissions, BTC leads with 96 million tons, while ETH mining emits 47 million tons. Reports show that the crypto market contains 15,000 cryptocurrencies and 400 exchanges. That is the other data we need to consider. If we know that the market is constantly growing, the amount of energy needed will only increase over time, while the mining efficiency will decrease.

One of the leading polluters of our planet is global CO2 emissions. If we know that this is the case, why add to the already shocking numbers pollution-wise with a mechanism that increases emission? If our goal is to cut down on pollutants, and if there is a safer alternative, why not switch? Ethereum is already putting in the efforts with Eth2.0. But will the others do the same?

Is Proof of Stake a good alternative?

Speaking of alternatives, Proof of Stake comes to the rescue. Proof of Work and Proof of Stake are similar, though. They both represent mechanisms utilized on the distributed network through which the participants can agree on which transaction block is added to a specific blockchain. The difference? The process of reaching that same endpoint.

PoW demands large amounts of computing resources and energy, which generate new, validated blocks. Proof of Stake revolves around staking. Staking is a bit like voting, as participants, also known as validators, stake a certain amount of cryptocurrency behind a block they wish to add to the blockchain. The pledged coins are thus locked while the transactions are verified but can be unstaked if you wish to trade them.

PoS requires crypto holders to “vote” for legitimate transactions approval. But what’s in it for these validators? Well, the reward for voting on legitimate transactions is receiving newly created crypto over time. So, the “stakers” get rewards, and planet Earth gets less pollution.

The primary advantage is that PoS avoids the need for investing additional sums of money into powerful computing equipment that consumes large amounts of electricity. This is why PoS was created in the first place – as a response to the ever-growin...