Energy-intensive Bitcoin transactions pose a growing environmental threat

July 31, 2018

Amsterdam, July 31, 2018 A study published in Energy Research & Social Science warns that failure to lower the energy use by Bitcoin and similar Blockchain designs may prevent nations from reaching their climate change mitigation obligations under the Paris Agreement.

The study, authored by Jon Truby, PhD, Assistant Professor, Director of the Centre for Law & Development, College of Law, Qatar University, Doha, Qatar, evaluates the financial and legal options available to lawmakers to moderate blockchain-related energy consumption and foster a sustainable and innovative technology sector. Based on this rigorous review and analysis of the technologies, ownership models, and jurisdictional case law and practices, the article recommends an approach that imposes new taxes, charges, or restrictions to reduce demand by users, miners, and miner manufacturers who employ polluting technologies, and offers incentives that encourage developers to create less energy-intensive/carbon-neutral Blockchain.

"Digital currency mining is the first major industry developed from Blockchain, because its transactions alone consume more electricity than entire nations," said Dr. Truby. "It needs to be directed towards sustainability if it is to realize its potential advantages.

"Many developers have taken no account of the environmental impact of their designs, so we must encourage them to adopt consensus protocols that do not result in high emissions. Taking no action means we are subsidizing high energy-consuming technology and causing future Blockchain developers to follow the same harmful path. We need to de-socialize the environmental costs involved while continuing to encourage progress of this important technology to unlock its potential economic, environmental, and social benefits," explained Dr. Truby.

As a digital ledger that is accessible to, and trusted by all participants, Blockchain technology decentralizes and transforms the exchange of assets through peer-to-peer verification and payments. Blockchain technology has been advocated as being capable of delivering environmental and social benefits under the UN's Sustainable Development Goals. However, Bitcoin's system has been built in a way that is reminiscent of physical mining of natural resources - costs and efforts rise as the system reaches the ultimate resource limit and the mining of new resources requires increasing hardware resources, which consume huge amounts of electricity.

Putting this into perspective, Dr. Truby said, "the processes involved in a single Bitcoin transaction could provide electricity to a British home for a month - with the environmental costs socialized for private benefit.

"Bitcoin is here to stay, and so, future models must be designed without reliance on energy consumption so disproportionate on their economic or social benefits."

The study evaluates various Blockchain technologies by their carbon footprints and recommends how to tax or restrict Blockchain types at different phases of production and use to discourage polluting versions and encourage cleaner alternatives. It also analyzes the legal measures that can be introduced to encourage technology innovators to develop low-emissions Blockchain designs. The specific recommendations include imposing levies to prevent path-dependent inertia from constraining innovation: According to Dr. Truby, these findings may lead to new taxes, charges or restrictions, but could also lead to financial rewards for innovators developing carbon-neutral Blockchain.
-end-


Notes for editors
The article is "Decarbonizing Bitcoin: Law and policy choices for reducing the energy consumption of Blockchain technologies and digital currencies," Jon Truby, PhD. (https://doi.org/10.1016/j.erss.2018.06.009). It will appear in Energy Research & Social Science, volume 44 (2018) published by Elsevier.

The research was supported by the Centre for Law and Development at the College of Law, Qatar University.

Full text of the article is available to journalists upon request. To obtain copies, contact the Elsevier Newsroom at j.davis.1@elsevier.com">newsroom@elsevier.com. Journalists wishing to set up interviews should contact Craig Teall at c.teall@elsevier.com">c.teall@elsevier.com, or the author, Dr. John Truby, Assistant Professor at the Centre for Law & Development, College of Law, Qatar University at jon.truby@qu.edu.qa" target="_self">jon.truby@qu.edu.qa.

About Energy Research & Social Science
Energy Research & Social Science (ERSS) is a peer-reviewed international journal that publishes original research and review articles examining the relationship between energy systems and society. ERSS covers a range of topics revolving around the intersection of energy technologies, fuels, and resources on one side; and social processes and influences - including communities of energy users, people affected by energy production, social institutions, customs, traditions, behaviors, and policies - on the other. Put another way, ERSS investigates the social system surrounding energy technology and hardware. http://www.journals.elsevier.com/energy-research-and-social-science

About ElsevierElsevier is a global information analytics business that helps institutions and professionals advance healthcare, open science and improve performance for the benefit of humanity. Elsevier provides digital solutions and tools in the areas of strategic research management, R&D performance, clinical decision support and professional education, including ScienceDirect, Scopus, SciVal, ClinicalKey and Sherpath. Elsevier publishes over 2,500 digitized journals, including The Lancet and Cell, more than 38,000 e-book titles and many iconic reference works, including Gray's Anatomy. Elsevier is part of RELX Group, a global provider of information and analytics for professionals and business customers across industries. http://www.elsevier.com

Media contact
Craig Teall, Marketing Communications
Elsevier
c.teall@elsevier.com">c.teall@elsevier.com

Elsevier

Related Energy Consumption Articles from Brightsurf:

Optimizing of VCSEL photon lifetime for minimum energy consumption at varying bit rates
Prof. Bimberg's group at Bimberg Chinese-German Center for Green Photonics Changchun at Institute of Optics, Fine Mechanics, and Physics, Chinese Academy of Sciences has developed VCSELs emitting at 850 nm, 880 nm, 910 nm, 940 nm, which were optimized to achieve 50+ Gb/s, enabling 200+ Gb/s data transmission across a multimode fiber.

Solar assisted heating networks reduce environmental impact and energy consumption
More than 40% of energy consumption in the European Union is by buildings and 63% of this figure is due to residential dwellings.

First measurement of electron energy distributions, could enable sustainable energy technologies
To answer a question crucial to technologies such as energy conversion, a team of researchers at the University of Michigan, Purdue University and the University of Liverpool in the UK have figured out a way to measure how many 'hot charge carriers' -- for example, electrons with extra energy -- are present in a metal nanostructure.

Long-term developments of energy pricing and consumption in industry
Researchers at the Paul Scherrer Institute PSI have collaborated with British economists to study how energy consumption by Swiss industry develops depending on energy pricing.

Mandatory building energy audits alone do not overcome barriers to energy efficiency
A pioneering law may be insufficient to incentivize significant energy use reductions in residential and office buildings, a new study finds.

A smart way to predict building energy consumption
In a time of aging infrastructure and increasingly smart control of buildings, the ability to predict how buildings use energy -- and how much energy they use -- has remained elusive, until now.

Mapping the energy transport mechanism of chalcogenide perovskite for solar energy use
Researchers from Lehigh University have, for the first time, revealed first-hand knowledge about the fundamental energy carrier properties of chalcogenide perovskite CaZrSe3, important for potential solar energy use.

Space dragons: Researchers observe energy consumption in quasars
Researchers, for the first time, have observed the accelerated rate at which eight quasars consume interstellar fuel to feed their black holes.

New discipline proposed: Macro-energy systems -- the science of the energy transition
In a perspective published in Joule on Aug. 14, a group of researchers led by Stanford University propose a new academic discipline, 'macro-energy systems,' as the science of the energy transition.

How much energy storage costs must fall to reach renewable energy's full potential
The cost of energy storage will be critical in determining how much renewable energy can contribute to the decarbonization of electricity.

Read More: Energy Consumption News and Energy Consumption Current Events
Brightsurf.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to Amazon.com.