Energy Consumption Reduction Through Scalable Transaction Processing
Many people have a preconceived idea of what “blockchain technology” means. The gist of it is that certain networks function more efficiently than others, thereby allowing the network to collectively consume far less energy than a single system alone. In short, this means that the network is performing several functions at once and can collectively save a lot more energy than any singular system. However, this is highly oversimplified and doesn’t accurately depict the true picture of how this technology actually works. This article attempts to clarify the concept by describing the various forms this technology can take.
Distributed ledger technology
is one form of distributed ledger use. Distributed ledgers are ones in which all the information is not contained in just one main computer but rather on several different computers scattered around the Internet. The idea behind this is to reduce the energy consumption of each computer by transferring the work from central storage to individual computers. In effect, every computer saves energy and the entire system collectively saves energy. In this manner, the system behaves like a self-balancing energy circuit. When discussing blockchain technology in academic circles, generalizations are hewed about its allegedly immense energy consumption when compared to other alternative consensus mechanisms.
Consensus systems are consensus processes with redundancies.
For instance, when two different miners are trying to produce gold, there would be an alternative possibility for one of them to be sabotaged and they would not produce any gold whatsoever. Yet another example of this can occur if two different factories are trying to make steel plates and one of them gets struck. These incidents demonstrate that consensus is not only feasible but necessary for a certain level of energy consumption to be reduced or eliminated. This is why redundancy is crucial to the operation of a distributed ledger.
Redundancy in distributed ledger systems reduces
the overall magnitude of energy consumption due to the increased efficiency of its operation. It is also essential for controlling redundancy which is why most banks and other financial institutions use this kind of mechanism. Banking transactions using a distributed ledger can decrease the energy consumption of all the entities involved due to its increased reliability. If we dig deeper into the subject matter, we would learn that these transactions are executed every time new information is added to the system.
To put it simply, it uses a distributed ledger to control
and manage the number of transactions per second. The transactions can either add new information or delete old information from the system. As long as the network exists and the nodes are available, the energy consumption will remain steady. Energy usage can also be minimized because there are no more conflicts between entities for electricity consumption as it was in the past. The only remaining constraint is the amount of electricity used for the global community.
There are three known types of nodes in distributed networks.
The first is the point-to-point, the second is the file-to-file and the last is the multipoint entities. Each of these nodes has its own features but they can be assigned to any specific transaction to avoid duplication of tasks. The next year, we will also be seeing the introduction of new transaction processing technology that will enable the system to operate at a much faster speed thus further reducing energy consumption.