Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference.
Ethereum is powered by Ether, a cryptocurrency that enables anyone to write and run decentralized applications.
The Ethereum network is kept running by so-called “miners”, who use their computers to process transactions and are rewarded with Ether for their efforts.
Ethereum’s energy usage has been a hot topic of debate recently. Some estimates suggest that the Ethereum network uses more energy than the entire country of Denmark, while others claim that Ethereum actually uses less energy than Bitcoin.
So, does Ethereum use less energy than Bitcoin? Let’s take a closer look.
Bitcoin vs Ethereum: Energy Consumption
Bitcoin consumes more energy than Ethereum. On average, Bitcoin uses about 220 kilowatt-hours (kWh) of electricity per transaction, while Ethereum uses about 21 kWh.
However, it’s important to note that these numbers are averages, and actual energy consumption will vary depending on the size and complexity of each transaction. For example, a single Bitcoin transaction can consume as much as 700 kWh of electricity, while an Ethereum transaction can consume as little as 3 kWh.
The bottom line is that Bitcoin is more energy-intensive than Ethereum. However, it’s worth noting that Ethereum is still relatively new and its energy usage is likely to decrease over time as the network becomes more efficient.