As the crypto industry pushes the limits of blockchain, the constant pursuit of innovation and sustainability takes center stage, with various consensus mechanisms vying for the spotlight. One emerging alternative to Ethereum’s widely acclaimed Proof of Stake (PoS) model is Proof of Authority (PoA), employed by Vechain. I had the privilege of delving into these intricacies with Sunny Lu, the visionary CEO of Vechain, to unravel the potential and efficiency of PoA and explore how Vechain is redefining the standards of sustainable blockchain technology.
The Efficiency of PoA Compared to PoS
Ethereum’s transition to PoS has been highly anticipated for its promise of sustainability and energy efficiency. However, when compared to Vechain’s PoA, it becomes clear that there is more to the story. Sunny explains, “One of the reasons for this is a lack of overall knowledge about the nuances of blockchain technologies and their underpinning architectures, but I expect to see understanding grow in the coming years as both education and adoption speed up.”
“When compared to Bitcoin’s PoW mechanism, which gained notoriety for its energy consumption, PoS certainly is more energy efficient. However, that’s not to say it is optimized for energy efficiency; it is simply better than PoW in terms of overall energy consumption.”
Sunny further emphasizes the energy efficiency of VechainThor, stating, “In 2022, VechainThor was much more efficient than Bitcoin from an energy and carbon emissions perspective. VechainThor’s carbon emissions were on the order of 4.46 tons, whereas Bitcoin’s surpassed 86.3M tons.” Despite Ethereum’s migration to PoS, it is still projected to have annual carbon emissions of around 870 tons. Vechain’s carbon calculator tool reveals that if all 408.5M transactions that occurred on Ethereum in 2022 had taken place on the VechainThor blockchain, 318 times less CO2 would have been emitted, bringing the number down from 8,824 tonnes to 27.3 tonnes.
Vechain’s Real-World Applications
Vechain’s real-world applications serve as a testament to its efficiency and efficacy. In collaboration with BYD and DNV, Vechain has pioneered a carbon credit dApp. Sunny explains, “This dApp rewards users for choosing the electric mode in BYD’s hybrid electric vehicles, encouraging the use of electric vehicles and offering tangible rewards for sustainability.” Additionally, Vechain has partnered with ReSea and Ocean Cleanup, leveraging blockchain to prove plastic reclamation from the oceans.
“By hashing information such as weight, GPS data, time and date, etc., on the blockchain, they can prove plastic was genuinely recovered and mitigate greenwashing concerns.”
Leading the Next Evolution of Sustainable Blockchain Tech
Vechain positions itself not just to comply with global regulations and environmental concerns surrounding blockchain technologies but also to lead the next evolution of sustainable blockchain tech. Sunny reveals, “Together [with BCG], we’ve co-developed a framework that builds on real-world examples of blockchain usage for sustainability. Next year, we will be aiming to launch our first series of ecosystems across multiple industries that use this concept.” Through collaborations with organizations like PwC, DNV, and BCG, Vechain aims to track and verify the authenticity of green products, reduce carbon emissions, and promote sustainable practices.
Sunny concludes, “As the world faces down the reality of an impending climate crisis, it is imperative that technology undertakes a rapid evolution towards sustainable practices. By educating businesses, developers, and the general public, we aim to foster a more informed and responsible approach to blockchain adoption.” Vechain’s journey embodies resilience, innovation, and an unyielding dedication to sustainability, serving as a beacon for the industry and technological evolution at large.
