Ethereum Slashes Energy Use By 99% In Crypto Sustainability: Report

In a groundbreaking revelation, a recent University of Cambridge study unveils the remarkable environmental turnaround of the Ethereum blockchain. Before a pivotal software upgrade in 2022, the crypto’s greenhouse gas emissions equaled the yearly output of Honduras.

Meanwhile, this transformation signals a positive shift in the cryptocurrency sector’s environmental impact, challenging preconceptions about blockchain’s energy consumption.

Ethereum’s Environmental Evolution

The University of Cambridge study sheds light on the environmental impact of the Ethereum blockchain, revealing that its historical greenhouse gas emissions, pre-major upgrade, matched the yearly emissions of Honduras. Notably, this eye-opening comparison, as reported by Reuters, underscores the crypto sector’s potential for positive change and environmental responsibility.

However, in September 2022, the crypto underwent a significant software upgrade known as the “Ethereum Merge,” resulting in a staggering 99% reduction in energy usage. Before this transformation, the cumulative greenhouse gas emissions of the second largest crypto by market cap reached 27.5 million tonnes of carbon dioxide equivalent (MtCO2e) from its launch in 2015 until the Merge.

In contrast, under its post-merge system, Ethereum’s annual emissions stand at a mere 2.8 kilotonnes of CO2 equivalent, akin to the environmental impact of five round-trip flights from London to New York, the report suggested.

Anna Lerner, executive director at the Ethereum Climate Platform, emphasizes the role of the crypto as a trailblazer, challenging the perception of blockchain as a high emitter. Lerner emphasizes that Ethereum has demonstrated a dedication to environmental sustainability by avoiding excessive pollution., highlighting the platform’s commitment to environmental safety.

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A Closer Look Into The Report

The study positions Ethereum’s environmental achievements against Bitcoin, revealing that Bitcoin generates approximately 73.9 MtCO2e annually based on November 2022 data. This places Bitcoin’s yearly emissions on par with Cambodia’s 2020 output, as reported by Climate Watch.

Meanwhile, the comparative analysis showcases Ethereum’s strides in reducing its ecological footprint and sets a precedent for the broader blockchain and cryptocurrency space.

While cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH) predominantly function as investment tools, Ethereum’s commitment to reducing emissions provides a blueprint for the industry. As global leaders convene for the COP28 climate summit, Ethereum’s environmental success story challenges the narrative surrounding blockchain’s environmental impact, encouraging further exploration of sustainable practices within the crypto sphere.

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Rupam Roy

Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam's expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news. Rupam's career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.

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