The digital world has grown exponentially in the last few decades with new technologies and devices being developed, they require a massive amount of energy to power them. Consequently, businesses are relying on these technologies to serve the evolving customer needs in this digital-first world. Without the right planning and investments, switching to a completely digital future can lead to substantial, long-term increases in energy consumption. Thus, the demand for a sustainable energy future becomes greater as technology advances. In this blog post, we’ll discuss why a sustainable digital future is the need of the hour.
Rebound in Energy Demand
At the height of economic shutdowns induced by the pandemic, countries experienced an average of 25% decline in energy demand per week. Electricity demand decreased by around 20% during the full lockdown and the demand for non-renewable energy resources like coal and oil also fell largely during the lockdown. However, as many major economies are rebooting and devising recovery plans, keeping the digital future in mind, there is a rebound in energy demand and consumption in 2021. According to a report by Global Energy Review 2021 , Electricity demand is expected to increase by 4.5% in 2021. This accelerated adoption of digital technology is only expected to continue in the coming years and the demand for a sustainable digital future also becomes greater as technological advances and disruption call for greater energy consumption.
The impact and the future of cryptocurrencies
Cryptocurrencies are all the rage now. With the uncertainty caused by COVID-19, cryptocurrencies like Bitcoin, Ethereum, and other digital currencies have gained significant attention as the digital future is all set to rely instinctively on digital payment assets. However, as Cryptocurrencies are becoming more and more popular, they also have some serious environmental impacts.
Bitcoin network do require a lot of energy. Mining computers solve complicated math problems by running software that requires a lot of computing power (electricity). Also, when people buy cryptocurrency with fiat currency it further creates demand for more electricity because fiat currency needs to be converted into cryptocurrency.
But the entire crypto ecosystem is in the middle of a shift towards a more sustainable future that will result in significantly lower carbon emissions.Crypto is still in its very early stages, and energy used to mine crypto will more and more come from renewable sources.
It's estimated that on average, a single Bitcoin transaction consumes 1784.48 kWh ( https://www.statista.com/statistics/881541/bitcoin-energy-consumption-transaction-comparison-visa/
One Ethereum transaction will use 142.76 kWh , (https://digiconomist.net/ethereum-energy-consumption/) compared with 100’000 VISA transactions who actually used 148.63 kWh.
As mentioned, cryptocurrencies are still an emerging technology so there is plenty of room for improvement.
At Rubix Network we work on a more sustainable world and our blockchain is able to provide 100’000 transactions using only 0.174 Kwh.
The RubiX Solution
RubiX Blockchain Green Initiative Solves Bitcoin’s Carbon Emission Problem with a Proprietary Mechanism (PoH). Proof of Harvest Consensus Mechanism by RubiX’s Blockchain Green Initiative makes blockchain carbon-friendly and more sustainable. It provides an enterprise-level Zero Carbon Footprint blockchain alternative that is cryptographically 1,000,000 times more secure than the ECDSA 256 used by Bitcoin or Ethereum.
As we gear up to embrace digital technologies and the real economic growth it promises, the demand for a sustainable digital future becomes greater. So, it is time we switch to a path where a digital future not only serves all our needs but is also sustainable and environment-friendly. To learn more about how RubiX could contribute to a sustainable digital future, contact us today!