The two most widely used blockchain consensus mechanisms—proof of work and proof of stake—are distinct systems with critical trade-offs. Bitcoin’s proof of work is energy intensive in order to forge a link to the physical world, affording greater security and fairness than proof of stake systems, which use significantly less energy.
Proof of work mining has complex and dynamic effects on global energy systems. While mining uses substantial amounts of electricity—currently 0.18% of global energy—it is price-sensitive, interruptible, adjustable, and location-agnostic, which pairs well with intermittent renewable energy sources like wind and solar, as well as stranded sources of energy like waste methane.
