3 ms·
The fundamental difference between (proof-of-work) blockchains and the examples that you mentioned is that (pow) blockchains not only must consume ever increasi
by Mordisquitos 5y ago
The fundamental difference between (proof-of-work) blockchains and the examples that you mentioned is that (pow) blockchains not only must consume ever increasing amounts of electricity by their very design, but they also incentivise doing so as much as possible, the only limit being whether you can afford it.
Let's take Bitcoin for instance. I'm pretty sure that the electricity required to perform one single BTC transaction has grown by multiple orders of magnitude since Bitcoin first appeared, regardless of the possible efficiency improvements in GPUs or ASICs, and will continue to grow—hence, profitability will always scale linearly with the willingness and capability to waste.
On the other hand, dryers, Christmas lights, appliances, cars and laptops etc. have, if anything, all become more energy-efficient in the past decade, being able to perform the same funcion or better while using less power. On top of that, there's only so much washing you want to dry, or so many places you want to drive to—you don't want to indefinitely scale up the size of your dryer, or the number of cars you drive. And if you were to find a reason to scale up either of them, it would be because there is a business opportunity in providing a material service to customers, either laundry or transport. In that case, your profitability would be limited by how many people want their clothes dried or to be driven somewhere, and not just by how big you can afford the dryer or how many cars you can accumulate.