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Why Energy Concerns Around Blockchain May Be a Misconception

July 25, 2021
Reading Time:2 mins read
Why Energy Concerns Around Blockchain May Be a Misconception


July
25, 2021

5 min read

Opinions expressed by Entrepreneur contributors are their own.

For business leaders that are on the fence about whether their company should use blockchain, conversations around blockchain’s energy consumption might be a red flag. Bitcoin has made headlines recently for using more energy than airlines or even entire countries, raising alarms that the hottest new tech might not be all it’s cracked up to be. But as the chief product officer of a company that is currently building a blockchain, I can let you in on a secret: Not all chains are to blame. 

In the business sphere, blockchain technology is often grouped into the category of “innovative technology we’ll eventually use.” Since blockchain has traditionally been built by developers and used by developers, those with less of a technological background may not even be aware of the different types of chains, let alone how each impacts the environment.

Here are the differences between proof-of-stake and proof-of-work blockchain, and why companies that are looking to embrace blockchain don’t necessarily need to worry about its energy consumption. 

Related: Why Small Businesses Should Consider Bitcoin

POS vs. POW – what’s the difference?

Blockchains operate differently than traditional IT systems, and different types of chains have different impacts on the environment based on how they’re designed. Proof-of-work (POW) blockchain is likely what comes to mind when the…

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