THE IMPACT OF INNOVATIVE TECHNOLOGIES ON THE ENVIRONMENT AND THE ENVIRONMENTAL ASPECT OF PROOF-OF-WORK CONSENSUS
Authors: Gutsuliak Anatolii 
Published: February 2025

Introduction. The development of blockchain networks using the Proof-of-Work (PoW) consensus mechanism is accompanied by a significant environmental impact due to the high energy consumption of mining equipment. This poses serious challenges to achieving the goals of sustainable development and combating climate change. The results of the study can serve as a basis for the development of energy-efficient solutions and regulatory approaches aimed at reducing the environmental footprint of blockchain technologies.
Methods. General scientific research methods and special methods were used during the study, in particular: induction and deduction - at the stage of collecting primary data and analysing it, comparative (to compare the electricity consumption of the blockchain network and individual countries), abstract and logical - in the process of formulating conclusions, descriptive and analytical, creative and critical, graphical (to analyse the dynamics of the Bitcoin price, the network hash rate, the number of active addresses, and economic analysis.
Results. The dynamics of the Bitcoin blockchain network hashrate from 2017 to 2025 is studied in detail and periods of a sharp drop in total computing power are identified, as well as the main factors that led to this. The dynamics of energy consumption by the Bitcoin network is analysed and CO₂ emissions by different countries in 2024 are calculated depending on their share in the total hash rate of the network. The countries that produce less pollution per 1% of the network's hash rate are identified in comparison with others. The inefficiency of electricity consumption for the annual maintenance of active payment addresses and the need for urgent intervention by the international community to prevent significant environmental consequences are substantiated.
As a result of the conducted analysis of technical limitations of the proof-of-work (PoW) consensus mechanism, the existing problem of its high energy consumption is revealed. As a result of the made calculations of the carbon footprint generated by the process of mining new blockchain blocks in the countries with the largest share in the total hashrate, the author identifies and argues for the urgent need to create a coordinated intergovernmental policy to regulate and reduce environmental damage caused by mining activities.
Discussion. The main findings of the study contribute to the understanding of environmental risks of the Proof-of-Work (PoW) consensus mechanism and can be useful for environmental organizations at various levels. The calculations made on the energy consumption of the Bitcoin blockchain system can be used to substantiate the need for more transparent block mining and the transition to renewable energy sources. Given the growth in energy consumption and environmental threats, the study emphasizes the importance of a coordinated policy of the countries with the largest share in the hashrate to minimize the negative impact of mining. The results of the work can become the basis for further scientific research on the carbon and water footprint of mining as a type of economic activity.
Keywords: blockchain, carbon footprint, proof-of-work, hashrate, water footprint, blockchain trilemma, decentralization, scalability, mining.