Hedera Hashgraph Most Energy Efficient DLT According to UCL Pre-Print

The energy consumption associated with blockchain technologies has come under particular scrutiny over the past number of months. Bitcoin energy consumption is a hot topic. Due to negative press, there are many who believe that the Proof-of-Work digital currency is unsustainable and unfortunately all other DLT and blockchains are assigned to the “not environmentally friendly” heap.

This couldn’t be further from the truth – there are a number of newer generation blockchains or DLTs, which use “Proof-of-Stake” to reach consensus. These technologies are much more energy-efficient, and therefore much faster and cheaper than Bitcoin.

The Centre for Blockchain Technologies at University College London (UCL CBT) tested six of these new generation DLTs to find out which used the least amount of energy, the results of which can be read in their pre-print.

Using mathematical modeling, UCL researchers compared Hedera Hashgraph to other prominent DLT technology including Algorand, Cardano, Ethereum 2.0, Polkadot and Tezos. The study confirms that Proof-of-Stake DLTs’ energy usage is at least three orders of magnitude lower than Bitcoin (which uses Proof-of-Work to reach consensus on its network).

While Proof-of-Stake blockchains are all far more energy-efficient than Bitcoin, it was Hedera Hashgraph that proved to be the greenest among its PoS counterparts.

Hashgraph not only uses the least amount of energy – but the UCL study also revealed that it can carry out the highest transactions per second. Hashgraph is capable of 10000 transactions per second, while Ethereum 2.0 is estimated to be able to scale to around 3000 transactions per second.

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About Hedera Hashgraph

Hashgraph is a distributed ledger technology developed by Dr. Leemon Baird, which is:

• One of the most energy efficient DLTs without the limitations of blockchain
• A new generation of distributed ledger technology (DLT) and consensus algorithm
• DLT based on a secure DAG data structure, providing an ultra high throughput consensus mechanism that is both fast and fair.
• World’s first public decentralized platform for applications built on top of Hedera Hashgraph; powered by the native cryptocurrency (Hedera token).

Hashgraph allows for more environmentally friendly cryptocurrencies without sacrificing security or decentralization, something that’s becoming more important as DLT technology becomes more widely adopted.