ORIGINAL AUTHOR: Bryan Daugherty
I would like to expound upon my earlier post this week regarding the #energy utiliization and #co2emissions of popular #proofofwork implementations such as #BTC, #BSV, and #ETH. (See: https://www.linkedin.com/posts/bwdaugherty_didyouknow-co2emissions-proofofwork-activity-6954777810376830976-d4Q9)
The leading argument that is fueling the ban on #PoW surrounds the idea that ‘#Bitcoin’ runs on an energy-intensive network.
This is highlighted by respected online resources such as Digiconomist’s Bitcoin Energy Consumption Index which details the latest estimates of total #energyconsumption on the Bitcoin Core (BTC) network.
Their latest research conclusions, which were calculated based on Bitcoin Core (BTC) as a benchmark, would lead you to believe that ‘a rapid solution to Bitcoin’s #carbonfootprint is not within sight’. This concern has also been expressed by various politicians, technology entrepreneurs, and even within the text of the recent #EU #MiCA regulation proposal.
As one can see, this is a very common theme and ‘conclusion’ that has been echoed in countless articles, research papers, and public talks on the subject for quite some time. Some would point to the proliferation of other digital ledger technologies and consensus mechanisms as a means to solve the inherent scalability issues presented with the Bitcoin protocol.
Using BTC as the benchmark proof-of-work, it is nearly impossible to justify the incredible amount of energy consumed in return for the questionable utility provided. Conversely, when #BSV is included within the same modeling, we discover an entirely different outcome.
#Throughput is a rate that measures how many actions are completed in a unit of time, in Bitcoin’s case, it refers to how many transactions can be processed per second (#TPS).
BTC currently offers between 4 – 7 TPS yet consumes a significant amount of energy due to the speculative cryptocurrency mining taking place. Scaling efforts by BTC developers have primarily been focused on creating off-chain solutions which continue to cause fluctuations in the cost to transfer and exchange BTC – this is due to the restrictive capped 1mb blocks that BTC has maintained.
As for BSV throughput, a real-time demonstration during a live June 2021 #blockchain conference, showed over 50,000 – 100,000 transactions per second (TPS) could be achieved.
In comparison, Visa processes around 1,700 transactions per second, though claiming to be able to handle 65,000 TPS. BSV on the other hand has shown publicly the capacity to not only handle this volume of financial transactions, but also be the trustless accounting ledger, the shipping and supply chain infrastructure, the means of identity management solutions, and much more.
MNP, a leading national #accounting, tax, and business consulting firm in Canada has spent a great deal of time researching this topic and have recently published two reports that document why the original Bitcoin protocol matters, how changes to the popular BTC version have affected its capabilities, as well as how another competing version, BSV has been able to unleash the native scaling abilities that were present when the system was initially released.
I highly enourage #blockchaintechnology #researchers, #educators, and #lawmakers to review the recent MNP reports which can be accesssed here:
The Original Protocol, What Is it and Why Does It Matter: https://www.mnp.ca/en/insights/directory/the-original-bitcoin-protocol-what-is-it-and-why-does-it-matter
The Search for a More Efficicent Bitcoin: https://www.mnp.ca/en/insights/directory/the-search-for-a-more-efficient-bitcoin