Blockchain Technology and its effect on Environment: A Comparative Study between Proof-Of-Work and Proof-Of-Stake

Abstract

With the growing interest in cryptocurrency and blockchain by renowned companies environmental issues are also being highlighted due to the exhaustion of huge amounts of energy. This paper aims to give a primary overview of how cryptocurrencies are created by using the proof of work method and how blockchain works. Statistical references have been given to elaborate on how this process consumes high energy and increases carbon footprint causing harm to the environment. In comparison, the proof of stake method has established itself as an eco-friendly alternative. Ethereum has already manifested that using PoS can resolve the problem and is also safe for the environment.