April 28, 2026 by University of East London
Collected at: https://techxplore.com/news/2026-04-blockchain-highlights-sharp-energy-shift.html
A new academic study has found that newer forms of blockchain technology could significantly cut the vast energy consumption associated with digital currencies, addressing one of the sector’s most persistent criticisms. Published in the Journal of Enterprise Information Management, the research compares the two leading systems used to validate transactions on blockchain networks. It finds that more recent approaches deliver substantial improvements in energy efficiency.
Older “proof-of-work” (PoW) systems, used by early cryptocurrencies, rely on energy-intensive processes to validate transactions. Newer “proof-of-stake” (PoS) models instead use a less resource-heavy method, dramatically lowering electricity demand.
High energy use
Study author Viraj Nair, Lecturer in Fintech at the University of East London, said, “The energy intensity of earlier blockchain systems has become a major barrier to wider adoption. The findings show that newer approaches offer a viable path to reducing blockchain’s environmental footprint.”
The paper points to real-world developments, including Ethereum’s transition to a lower-energy model, as evidence that more efficient systems can operate at scale. This shift has already led to reductions in network energy use.
Blockchain systems that rely on energy-intensive validation methods have attracted criticism. It is estimated that the Bitcoin network alone consumes around 100–150 terawatt-hours (TWh) of electricity per year, comparable to the annual energy use of a mid-sized country such as Argentina or the Netherlands.
Nair said, “The study argues that improving energy efficiency will be critical as blockchain technologies expand into enterprise and public sector use, where environmental considerations are shaping investment and regulatory decisions. Lower-energy systems represent a more sustainable foundation for future blockchain technologies.”
More information
Viraj Nair, From Proof-of-Work to Proof-of-Stake: a comparative study on sustainability, scalability and governance in blockchain networks, Journal of Enterprise Information Management (2026). DOI: 10.1108/jeim-06-2025-0475
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