Vechain’s Proof of Authority (PoA) is challenging Ethereum’s Proof of Stake (PoS) with its superior energy efficiency and lower carbon emissions. Vechain’s real-world applications, such as its carbon credit dApp and support for plastic reclamation efforts, are aligned with sustainability goals.
While Ethereum’s transition to PoS was praised for its promise of sustainability and energy efficiency, a comparison with Vechain’s PoA reveals a clearer picture. In 2022, VechainThor outperformed Bitcoin in terms of energy and carbon emissions. Although PoS is more energy-efficient than Proof of Work (PoW), it still falls short of being optimized for energy efficiency.
During an interview, Sunny Lu, the CEO of Vechain, stated that the lack of knowledge about blockchain nuances and architectures contributes to misconceptions. He expects education and adoption to bridge this gap in the coming years. In 2022, VechainThor’s carbon emissions were approximately 4.46 tons, while Bitcoin’s exceeded a staggering 86.3 million tons. Even with Ethereum’s migration to PoS, it is projected to have annual carbon emissions of about 870 tons.
Vechain’s carbon calculator reveals a stark contrast. If Ethereum’s 408.5 million transactions in 2022 occurred on the VechainThor blockchain, it would have emitted 318 times less CO2, reducing the figure from 8,824 tonnes to 27.3 tonnes.
Vechain’s real-world impact is evident in its applications. Collaborating with BYD, the world’s largest electric vehicle (EV) manufacturer, and DNV, a global certification authority, Vechain introduced a carbon credit dApp that rewards users for choosing the electric mode in BYD’s hybrid EVs. This promotes sustainability and offers tangible incentives. Vechain also supports companies like ReSea and Ocean Cleanup in their efforts to reclaim plastic from the oceans, using blockchain technology to authenticate their actions.
In response to the growing scrutiny from global regulators and environmental groups regarding the carbon impact of blockchain technologies, Vechain is positioning itself as a leader in sustainable blockchain tech. Collaborating with Boston Consulting Group (BCG), they have developed a framework based on real-world examples of blockchain usage for sustainability. In the next year, Vechain plans to launch ecosystems across multiple industries that adhere to this concept, aiming to track and verify the authenticity of green products, reduce carbon emissions, and promote sustainable practices.
Vechain’s strong collaborations at the government level and close partnerships with renowned adoption drivers like PwC, DNV, and BCG position them uniquely to lead the sustainability revolution.
As the world faces the looming climate crisis, technology must evolve towards sustainable practices. The blockchain and crypto industries are at a crucial crossroads where efficiency and environmental consciousness are prerequisites for progress. Sunny Lu reiterates Vechain’s commitment to environmental responsibility, emphasizing their focus on addressing environmental concerns throughout their development. Education for businesses, developers, and the public is a crucial part of their strategy to promote responsible blockchain adoption.
In the era of digital transformation, Vechain’s journey serves as an example for the industry, showcasing resilience, innovation, and unwavering dedication to sustainability. Their PoA model offers a glimpse into a more energy-efficient and sustainable future for blockchain technology.