In recent years, the topic of “sustainability” has become an important part of blockchain projects’ marketing strategies. However, the reality is this: despite loud claims, many of the largest networks consume enormous amounts of electricity, causing serious environmental impacts. Bitcoin, Ethereum (before the transition to Proof of Stake) and other Proof of Work-based blockchains are putting a huge strain on energy grids and increasing carbon emissions. In this article, we’ll break down how DexNetChain offers a real solution to the problem, delivering high performance while minimizing energy consumption.

High energy costs: the price of decentralization

The problem is that traditional blockchains require huge amounts of energy to keep computing devices running. It is this point that is becoming a key issue from an environmental perspective.

According to Digiconomist, the bitcoin network is responsible for emitting about 96 million tons of carbon dioxide per year — the same amount as Uzbekistan produces. It takes 863 kW⋅h to process a single bitcoin transaction — the equivalent of an average American family’s monthly energy consumption.

According to recent data, the energy consumption of the bitcoin network is comparable to that of small countries. For example, in 2021, bitcoin consumed about 120 TW⋅h per year — this is the level of Argentina or the Netherlands. In 2022 this value has increased to 150 TW⋅h, which already corresponds to the consumption of Poland or Sweden. Ethereum (before switching to PoS) consumed 112 TW⋅h and Dogecoin consumed 6 TW⋅h, which is comparable to the energy consumption of Costa Rica.

Environmental implications of PoW blockchains

The high energy consumption of Proof of Work (PoW) based blockchains leads to increased CO2 emissions, especially in countries where electricity is generated by coal and other fossil fuels. This increases climate change and environmental burdens.

For example, much of the cryptocurrency mining is done in high emission countries such as China. This leads to a significant increase in carbon footprint. Studies show that emissions from bitcoin mining can account for up to 0.5% of the world’s total CO2 — a level comparable to entire industrial sectors.

Impact on energy grids

In addition to environmental impacts, the high energy consumption of blockchains puts additional pressure on power grids. In regions with limited infrastructure, this can lead to power outages and higher electricity prices. For example, power outages due to mass cryptocurrency mining have been reported in Iran and Kazakhstan.

How does DexNetChain change the situation?

Unlike traditional blockchains that use PoW, DexNetChain uses the energy-efficient Proof of Authority (PoA) algorithm. This allows the network to achieve high security and speed while minimizing energy consumption.

How is DexNetChain making a difference?
Unlike traditional blockchains that use PoW, DexNetChain uses the energy-efficient Proof of Authority (PoA) algorithm. This allows the network to achieve high security and speed while minimizing energy consumption.

The key benefits of DexNetChain are:

✔ Minimal power consumption: network nodes run on devices that consume only 3 W⋅h — less than your TV in sleep mode.

✔ No mining: no need to use power-intensive computing.

✔ Environmental sustainability: low carbon footprint, compliant with sustainability principles.

✔ Operational stability: no network congestion, high throughput without environmental impact.

DexNetChain is shaping sustainable blockchain standards

The energy inefficiency of traditional blockchains has become one of the industry’s major concerns. Huge electricity consumption, CO2 emissions and strain on power grids require new solutions. DexNetChain offers a truly sustainable alternative, combining high performance, security and minimal environmental impact.

The future of blockchain is not just about speed and security, but also about responsibility to the world around us. DexNetChain is already setting the standard for a sustainable digital future.