Tezos, a privacy-focused blockchain network, released its carbon footprint report from PricewaterhouseCoopers Advisory SAS – a French member firm of PwC’s network of member firms.
The PwC report reflects dramatic improvements in energy efficiency for Tezos since moving from a proof-of-work (PoW) mining consensus to a proof-of-stake (PoS) consensus.
The PwC report highlighted a significant decrease in CO2 emissions from the Tezos network, despite an increase in network activity. The Tezos blockchain accounted for 50 million transactions, while the report said the entire network had an energy footprint of 17 global citizens.
The energy efficiency for each transaction on the network increased by 70%, while the estimated electricity demand per transaction was 30% lower than in 2020.
“As more brands and companies incorporate energy consumption into business decisions, an energy-efficient blockchain like Tezos is well positioned to meet their needs and ensure efficient, safe and reliable operation,” said Reid Yager, Global Director of Communications at Blokhaus. a marketing company affiliated with Tezos.
The annual energy consumption of the Tezos network is estimated at 0.001 terawatt hours (TWh), which is negligible compared to Bitcoin (BTC) with 130 TWh and Ethereum (ETH) with 26 TWh. Tezos uses almost 2.5 g of CO2 equivalent per transaction
Related: French retail giant to launch Tezos-based stablecoin
Moving to PoS has not only helped the Tezos network reduce its carbon footprint, it has also opened up new avenues in non-fungible tokens (NFT) and decentralized funding. Tezos was selected by Red Bull Racing, Honda and McLaren Racing as their NFT launch platform. It was also recognized by Art Basel Miami Beach as the blockchain of choice for its ecosystem exhibition.
The number of blockchain networks moving from PoW to PoS due to issues with energy consumption and the complexity of scalability has increased significantly. In addition to Tezos, there is ZCash (ZEC), another data protection-oriented blockchain network. switches to PoS. Most of the blockchain networks making the switch are trying to avoid the energy consumption FUD related to the PoW mining consensus.