BSV advocates have proclaimed for years that the blockchain based on the original Bitcoin protocol was a more environmentally friendly option than competing options. Now, an independent auditor has verified it.
MNP, a Canadian accounting company, recently published a research study about the three primary “Bitcoin” blockchains: Bitcoin Core (BTC), Bitcoin Cash (BCH), and BitcoinSV (BSV). The MNP report determined that BSV is unequivocally the leader in energy efficiency. Designed to accommodate massive levels of transactions, BSV outcompetes BTC and BCH because it is unbounded by block size.
Further proof of the power of the BSV blockchain came this week when a world-record 2.5-gigabyte block was mined, with fees surpassing the block subsidy. In the first month of 2022, the BSV blockchain recorded more than 100 million transactions, a 20 times increase from the January 2021 volume.
“Transactions are the ultimate measure of throughput,”
MNP writes in its report, “Blockchain technology and energy consumption: The quest for efficiency”.
“The number and size of the transactions in a block will affect the size of the block. BTC has a strictly limited block size approaching 4MB. BCH has a much more permissive limit of 32MB. BSV is unbound by block size. Since mining is what consumes energy, and blocks are the product of mining: the more transactions in a block, the lower the energy consumption per transaction. Similarly, the larger a block can be (measured in megabytes), the lower the energy consumption per megabyte.”
As the largest transaction processor in the BSV network, TAAL long ago committed to deploying practices that lowered energy consumption while still providing the blockchain ecosystem with fast and dependable services. In 2021, the company partnered with Hut 8 to increase its mining capacity and maintain a low output of energy compared to others in the industry. Hut 8 provides TAAL with physical hosting and optimization services for 960 hashing computers that use 3.2 MW of Hut 8’s power.
Hut 8 is a leading supplier of blockchain datacenter infrastructure and is noted for its environmental commitments. The MNP study cited the differences in energy consumption between the three Bitcoin blockchains as a key reason for declaring BSV as the industry champion in regards to the planet’s health. MNP notes that because the three Bitcoin protocols each uses the same proof-of-work mechanism (SHA-256), it could make accurate comparisons for a variety of data points.
Among the notable findings was the difference between the per-megabyte consumption of energy for the three protocols. In 2021, BTC peak usage was 991 MWh/MB compared to BCH’s peak of 194 MWh/MB and just a high of 12.3 MWh/MB for BSV. CoinShares, which tracks Bitcoin and blockchain trends, published a report in January that corroborates the MNP study. According to Coin Telegraph, CoinShares says the BTC network “emitted 42 megatons, or Mt, (1Mt = 1 million tons) of carbon dioxide, or CO2, in 2021.” It’s a figure that accounts for 0.08% of the world’s total emissions of 49,360 Mts of CO2 in the same year.
“Results indicate BTC consumes orders of magnitude more power than either of the other two protocols tested. The overall energy consumption difference is a function of the hashrate on the network,” the MNP study states. “The estimated consumption difference between the protocol with the most consumption (BTC) and the protocol with the least consumption (BSV) is at its most (16041.24 GWh) in Q1 2021, and its least (11343.25GWh) in Q2 2020 as per our model’s output. Our estimates indicate BTC consumes between 60 and 250 times the power of BSV per quarter.”
TAAL continues to find ways to improve the energy efficiency of its operations. In December, it acquired Chief Fuels, Inc., a 60,000-square-foot digital mining facility based in New Brunswick, Canada. Once it is operating at capacity, the property will add 50 MW of power to TAAL’s transaction processing capabilities. It includes 40% renewable energy and more than 80% non-emitting energy production, and will provide excellent employment opportunities for the community of Grand Falls.
MNP summed up its findings when the report’s authors concluded: “So long as the size or number of transactions on the BSV network exceeds the limitation of the other protocols, BSV is the most efficient in this group.”
For a thorough report on the MNP findings and its comparisons between the three Bitcoin blockchains, read the Bitcoin Association’s in-depth analysis.