Bitcoin and other similar cryptocurrencies, which number in the thousands, are gaining more and more popularity every day. Many new blockchain projects are launched every day using the Proof of Work (PoW) consensus algorithm, which consumes a huge amount of energy.
At the same time, in 2021-2022, the world community is experiencing a global energy crisis, many countries have faced or will face the problem of electricity shortages, prohibiting cryptocurrency mining at the state level.
Today, bitcoin mining consumes more electricity per year than Norway, a country with a population of more than 5 million people, consumes. The subsequent halving should increase the difficulty of mining by at least 2 times and, accordingly, the consumption of electricity will increase by 2 times.
The level of energy consumption is growing every day, and with it the level of complexity of hydrocarbon production, and given that the world's oil reserves are only ~42 years old, and natural gas for ~150 years, the future will be with alternative energy efficient technologies.
2021 and green blockchains
2021 was remembered not only for the global energy crisis, but also for the launch of the Chia blockchain project. The Chia blockchain uses a new Proof of Space and Time (PoST) consensus algorithm, which implies a proof of space in a given period of time, which makes the Chia network more energy efficient and reliable.
A new generation of green blockchains has replaced outdated algorithms that consume large amounts of electricity. Today it is difficult to imagine a modern home with an outdated lighting system consisting of conventional incandescent lamps. As with energy-saving lamps, it will take time for green blockchains to become known in every home. Today in modern society there is not a single person who would not know about bitcoin and an energy-saving lamp, and our children have not met incandescent lamps since birth and know about them only from old books.
The PoST algorithm solves the main problem of decentralization. Unlike PoS, where 20% of holders control 80% of the entire network, PoST-based projects are decentralized like bitcoin and consume less energy than PoW.