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The Energy Consumption of Blockchain Technology: Beyond Myth

Author

Listed:
  • Johannes Sedlmeir

    (Project Group Business and Information Systems Engineering of the Fraunhofer FIT
    University of Bayreuth)

  • Hans Ulrich Buhl

    (Project Group Business and Information Systems Engineering of the Fraunhofer FIT
    University of Augsburg)

  • Gilbert Fridgen

    (Project Group Business and Information Systems Engineering of the Fraunhofer FIT
    University of Luxembourg)

  • Robert Keller

    (Project Group Business and Information Systems Engineering of the Fraunhofer FIT
    University of Augsburg)

Abstract

When talking about blockchain technology in academia, business, and society, frequently generalizations are still heared about its – supposedly inherent – enormous energy consumption. This perception inevitably raises concerns about the further adoption of blockchain technology, a fact that inhibits rapid uptake of what is widely considered to be a groundbreaking and disruptive innovation. However, blockchain technology is far from homogeneous, meaning that blanket statements about its energy consumption should be reviewed with care. The article is meant to bring clarity to the topic in a holistic fashion, looking beyond claims regarding the energy consumption of Bitcoin, which have, so far, dominated the discussion.

Suggested Citation

  • Johannes Sedlmeir & Hans Ulrich Buhl & Gilbert Fridgen & Robert Keller, 2020. "The Energy Consumption of Blockchain Technology: Beyond Myth," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 62(6), pages 599-608, December.
    • Handle: RePEc:spr:binfse:v:62:y:2020:i:6:d:10.1007_s12599-020-00656-x
    DOI: 10.1007/s12599-020-00656-x
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    References listed on IDEAS

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    1. Nils-Holger Schmidt & Koray Erek & Lutz M. Kolbe & Rüdiger Zarnekow, 2009. "Sustainable Information Systems Management," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 1(5), pages 400-402, October.
    2. Camilo Mora & Randi L. Rollins & Katie Taladay & Michael B. Kantar & Mason K. Chock & Mio Shimada & Erik C. Franklin, 2018. "Bitcoin emissions alone could push global warming above 2°C," Nature Climate Change, Nature, vol. 8(11), pages 931-933, November.
    3. Lars Dittmar & Aaron Praktiknjo, 2019. "Could Bitcoin emissions push global warming above 2 °C?," Nature Climate Change, Nature, vol. 9(9), pages 656-657, September.
    4. Max J. Krause & Thabet Tolaymat, 2018. "Quantification of energy and carbon costs for mining cryptocurrencies," Nature Sustainability, Nature, vol. 1(11), pages 711-718, November.
    5. Roman Beck & Michel Avital & Matti Rossi & Jason Bennett Thatcher, 2017. "Blockchain Technology in Business and Information Systems Research," Business & Information Systems Engineering: The International Journal of WIRTSCHAFTSINFORMATIK, Springer;Gesellschaft für Informatik e.V. (GI), vol. 59(6), pages 381-384, December.
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