The blockchain energy consumption is a hot topic of debate and has recently started getting attention from regulators worldwide. Blockchains that use Proof of Work (PoW) consensus mechanism consume energy from different sources to secure the blockchain network.
According to a recent study, Bitcoin dominates 80% of the market cap of the Proof of Work based cryptocurrencies. In a Proof of Work consensus mechanism, specialized hardware machines that consume a lot of electricity and solve mathematical puzzles to secure the network. Sounds confusing? Here is a simple breakdown of how the Proof of Work consensus mechanism works.