Stellar and PwC: Blockchain Sustainability Framework Explained

Stellar Development Foundation (SDF) and PwC joined forces in late 2022 to develop the Blockchain Sustainability Framework (BSF), providing critical insights into blockchain’s environmental impact. 

This report focuses on energy consumption, carbon emissions, and e-waste, laying a roadmap for sustainable blockchain innovations.

Stellar’s Federated Byzantine Agreement: An Energy-Efficient Model

Stellar's unique consensus mechanism, the Federated Byzantine Agreement (FBA), stands out for its energy efficiency.

• Energy Consumption: Stellar Core nodes consume only 261,435 kWh annually, translating to just 0.173 Wh per transaction.
• Low Carbon Emissions: Emissions per transaction are an impressive 0.062 g CO2e, marking Stellar as one of the least environmentally harmful blockchain protocols.

Unlike Proof-of-Work (PoW) systems like Bitcoin, which demand immense computational power, Stellar's infrastructure delivers scalability and decentralisation with minimal environmental impact.

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Beyond Energy Efficiency: E-Waste and Embodied Carbon

PwC’s analysis goes further than energy metrics by addressing other sustainability concerns:

• E-Waste: PoW systems often rely on specialised hardware like ASICs, which have limited lifespans and contribute significantly to e-waste.
• Embodied Carbon: Stellar mitigates this issue by using general-purpose and cloud-based hardware, reducing its embodied carbon footprint and making it a more sustainable option.

These insights highlight the need for blockchain developers to adopt holistic sustainability metrics.

Recommendations for Sustainable Blockchain Innovation

The report provides recommendations to align blockchain technology with global decarbonisation efforts:

1. Energy Decarbonisation: Utilising renewable energy sources for blockchain operations.
2. Advanced Metrics: Future analyses should incorporate biodiversity, water use, and ESG aspects like governance and diversity.
3. Long-Term Goals: The blockchain community must prioritise environmental sustainability without compromising scalability and security.

Stellar’s framework illustrates how sustainability can become a foundational principle for blockchain development, paving the way for a greener digital future.

Conclusion

Stellar and PwC's Blockchain Sustainability Framework demonstrates that blockchain technology can align with global sustainability goals. 

By leveraging energy-efficient consensus mechanisms and addressing key environmental metrics, this collaboration sets a benchmark for sustainable innovation in blockchain technology.

Frequently Asked Questions

1. What makes Stellar’s Federated Byzantine Agreement energy efficient?
Stellar’s FBA uses general-purpose and cloud-based hardware, consuming only 0.173 Wh per transaction, far less than energy-intensive PoW systems like Bitcoin.

2. How does the Blockchain Sustainability Framework address e-waste?
The report highlights that using specialised hardware like ASICs in PoW systems increases e-waste, whereas Stellar’s use of general-purpose hardware mitigates this issue.

3. Why is sustainability important for blockchain innovation?
Sustainability ensures blockchain technology can advance without compromising environmental health, aligning with global decarbonisation goals.

Investor Caution 

While the crypto hype has been exciting, remember that the crypto space can be volatile. Always conduct your research, assess your risk tolerance, and consider the long-term potential of any investment.

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