Input Output Global (IOG), the technology firm spearheading the research and development of Cardano, has offered an explanation as to why Cardano is frequently referred to as “the green blockchain.” According to IOG, this moniker is attributed to two primary factors: a significantly reduced energy footprint and a unique staking mechanism, as outlined in a Twitter thread and a blog post by IOG.
Bitcoin, the pioneer of cryptocurrencies, has faced considerable criticism for its environmental impact. According to IOG, Bitcoin’s proof-of-work (PoW) protocol is notorious for its high energy consumption. Current estimates suggest that Bitcoin mining consumes approximately 99.37 terawatt hours (TWh) of electricity annually. This is equivalent to the total energy production of countries like Malaysia or Sweden.