Study on energy efficiency and carbon neutral path of Ethereum blockchain: from PoW to PoS

Abstract

This paper revisits the thorny issue of energy consumption and carbon emissions associated with the Ethereum blockchain, introducing the Ethereum network's strategic resolution for improving energy consumption and carbon footprint - the Merge. The main focus is transitioning from a Proof of Work (PoW) to a Proof of Stake (PoS) consensus algorithm. Theoretically, we dissect the feasibility of transitioning from PoW to PoS consensus algorithms in ameliorating energy efficiency and carbon emissions. Additionally, we have amassed and curated data from relevant research bodies about this issue. Both theoretical analyses and institutional data underscore that Ethereum has begun to reduce energy consumption and carbon emissions significantly.