Spark
Context
Recommendations
Proof of Work Is an Energy-Intensive Consensus Algorithm
Consensus Algorithms Keep Decentralized Networks on the Same Page
Proof of Work Requires Nodes to Invest Power for a Chance at Reward
Mining Nodes Validate Transactions and Group Them Into Blocks
Mining Nodes Compete for the Right to Add Their Block to the Distributed Ledger
The Network Will Reject Blocks That Include Fraudulent Transactions or Manipulated Data
Why Solve Consensus with Proof of Work?
High Digital Currency Valuation Caused Rapid Load Growth
Increasing Electricity Consumption Creates a Feedback Loop
Digital Currency Mining Has Unconventional Load Characteristics
Electricity Costs Are a Disproportionately High Fraction of Operating Costs
Digital Currency Miners Have a Prevailing Incentive to Minimize Electricity Costs
Digital Currency Miners Are Highly Mobile Relative to Traditional Industrial Customers
Digital Currency Mining Has an Uncertain Future
The Market for Digital Currency Mining Is Likely to Shrink
A Range of Factors Influence Growth in Electricity Consumption
Regulations That Once Encouraged Digital Currency Mining Are Being Withdrawn
Proof of Work Is Already an Outdated Technology
Utilities Must Prepare for a Range of Future Scenarios
Utilities Should Not Panic
But They Must Be Prepared
Hardware Suppliers Must Look to New Markets for Growth
Utilities Must Not Invest in New Infrastructure to Support Digital Currency Mining
Investors and Partners Must Be Wary of Greenwashing
Digital Currency Miners Need a Backup Plan
Blockchain Technology and Digital Currencies Must Be Viewed Separately