The environmental impact of crypto

At Vivid, we believe it’s essential to understand how trading and staking activities affect the environment. This page outlines the impact of different blockchain technologies and explains how we ensure compliance with the Markets in Crypto-Assets Regulation (MiCAR).

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Understanding the environmental footprint of your activity

Proof of Work vs Proof of Stake

Proof of Work vs Proof of Stake

The two main blockchain validation methods differ significantly in their environmental impact. Proof of Work (PoW) relies on energy-intensive mining, while Proof of Stake (PoS) offers a more sustainable alternative by selecting validators based on their staked assets.

Trading and the environment

Trading and the environment

Transactions on energy-intensive PoW networks indirectly contribute to carbon emissions. Trading on PoS-based networks helps reduce indirect emissions caused by transaction validation. At Vivid, we support both PoW and PoS assets, but encourage sustainable choices in line with MiCAR principles.

Staking: A greener way to support blockchain

Staking: A greener way to support blockchain

Staking on Proof of Stake networks is far more energy-efficient than traditional mining — consuming up to 99.9% less electricity. It also produces significantly lower carbon emissions and avoids the electronic waste caused by constant hardware upgrades.

Sustainable choices in crypto

Sustainable choices in crypto

Choosing more energy-efficient blockchain networks helps you reduce your environmental footprint. At Vivid, we support conscious crypto use — with tools and services aligned with MiCAR sustainability standards.

Energy Consumption

CoinConsensus MechanismEstimated Annual Energy Consumption
  • Bitcoin (BTC)
    Bitcoin
    BTC
    Proof of Work (PoW)
    ~160 TWh
    High consumption is due to its PoW mechanism, which requires significant computational power.
  • Ethereum (ETH)
    Ethereum
    ETH
    Proof of Stake (PoS)
    ~2.6 GWh
    Energy consumption decreased by 99.84% after PoS transition.
  • Dogecoin (DOGE)
    Dogecoin
    DOGE
    Proof of Work (PoW) using the Scrypt algorithm
    ~82 GWh
    Uses Scrypt algorithm; lower consumption than Bitcoin.
  • Binance Coin (BNB)
    Binance Coin
    BNB
    Proof of Staked Authority (PoSA)
    Negligible
    Utilizes a hybrid PoS/PoA mechanism with a limited validator set, resulting in low energy consumption.
  • Shiba Inu (SHIB)
    Shiba Inu
    SHIB
    Proof of Stake (PoS)
    ~2.6 GWh
    Operates on Ethereum's PoS network; energy consumption decreased by 99.84% after PoS transition.
  • Litecoin (LTC)
    Litecoin
    LTC
    Proof of Work (PoW) using the Scrypt algorithm
    ~3.5 TWh
    Utilizes the Scrypt algorithm; lower consumption than Bitcoin.
  • Ethereum Classic (ETC)
    Ethereum Classic
    ETC
    Proof of Work (PoW) using the ETChash algorithm
    ~1.5 TWh
    Maintains PoW consensus; energy consumption is lower than Bitcoin due to a smaller network size.
  • Toncoin (TON)
    Toncoin
    TON
    Proof of Stake (PoS)
    ~1.45 GWh
    Utilizes PoS consensus; significantly lower energy consumption compared to PoW systems.
  • Bitcoin Cash (BCH)
    Bitcoin Cash
    BCH
    Proof of Work (PoW) using SHA-256
    ~1.5 TWh
    Employs SHA-256 PoW; energy consumption is lower than Bitcoin due to a smaller network size.
  • Solana (SOL)
    Solana
    SOL
    Proof of Stake (PoS) with Proof of History (PoH)
    ~16.8 GWh
    Utilizes PoS with PoH; highly energy-efficient with low carbon footprint.