Blockchain’s glory continues to intensify in Africa. With a growing interest in the technology, various sectors like finance, healthcare, and real estate are exploring its potential applications in solving existing problems. Estimates show that the Bitcoin networks' energy consumption is more than 4.41 billion kilowatt hours, a Godzilla-sized carbon footprint. As early as 2015, the combined processing power of the Bitcoin network was hundreds of times greater than the total output of the world's top 500 supercomputers. This raises a significant concern about the unsustainable energy consumption associated with blockchain operations. In this article, we will review the showstoppers hindering the widespread adoption of blockchain with a specific focus on the unsustainability of the energy consumed. By exploring the environmental implications, challenges and potential solutions, we shed more light on the complex dynamics of implementing blockchain in Africa.

It is costly to run blockchain networks

Critics suggests that the energy we currently use to power blockchain operations could be diverted to curing cancer, explore the stars, or solve other germane problems facing our planet. The energy used to show proof-of-work is significant, and if it scales linearly, it will be both expensive and unsustainable. Here's the basic rule of thumb for cost. For every dollar computer burns up in electricity, it needs $0.50 to cool down. Processing and protecting the more than $814 billion worth of Bitcoin in circulation actually requires hundreds of millions of dollars in electricity every single year. It is obvious that we need an urgent fix to the energy demands of blockchain in order to fully benefit from the new era of the internet.

Potential of blockchain in the energy sector

Blockchain technology can transform the energy sector of Africa. It can allow for peer-to-peer trading, allowing individuals, businesses, and communities to buy and sell excess energy directly. Using smart contracts, people can sell solar electricity to their neighbours without human interaction. This decentralization can increase people’s access to reliable and affordable energy, especially in remote areas. Furthermore, blockchain technology can aid grid management, track carbon emissions, disburse carbon credits, and optimize renewable energy production.

Several projects have demonstrated the potential of blockchain in revolutionizing the energy sector of Africa. South Africa’s Sun Exchange enables individuals to buy solar panels and lease them to organizations. SolarCoin in Nigeria gives cryptocurrency incentives to its users that generate electricity using solar.

Despite the numerous benefits of blockchain, the technology consumes too much energy. It relies on a consensus mechanism, for instance, proof-of-work, which requires great computational power to validate and secure transactions. This energy-consuming process poses a huge environmental challenge, especially to the African continent where the energy supply is already limited.

Environmental Implications of Blockchain Implementation in Africa

Largely all over the world, the energy consumed while using blockchain is often overlooked. In Africa where energy resources are already strained, the energy consumption concerns cannot be ignored. In this vein, we will delve into the environmental implications of implementing blockchain in the continent.

Because of the significant amount of electricity used to power blockchain operations, there is an implication of greenhouse gas emission and contribution to carbon footprint. While Africa is currently crawling with achieving the SDG goal of 100% clean energy by 2030, the carbon footprint of blockchain implementation could exacerbate the lingering environmental concerns.

Renewable energy could also be affected by this unsustainability challenge. It is a common fact that the push for renewable energy adoption is crucial for the sustainable development of Africa. Blessed will numerous natural resources, especially sunshine and wind, Africa can become the global hub for renewable energy production. However, the energy-intensive nature of blockchain operations can hinder the development of renewable energy solutions. This is because there will be more focus on powering blockchain, diverting attention and resources away from investing in renewable energy infrastructures. This can potentially slow down the continent’s transition to cleaner and more sustainable energy sources.

How can energy consumption in blockchain be sustainable?

Despite all the worries about the energy unsustainability of blockchain operations, the right steps and collaborations can help us achieve an energy-sustainable blockchain space. Firstly, the over-reliance on the energy-consuming proof-of-work consensus mechanism must be changed. Exploring alternatives like proof-of-stake, which has proven to be energy-efficient, can significantly solve this problem without compromising security and decentralization.

Another approach to addressing energy unsustainability is exploring alternative energy sources for blockchain operations. Africa is blessed with lots of renewable energy resources, especially solar and wind. By tapping into Africa’s renewable energy, blockchain implementation can align with sustainable goals leading to the reduction of carbon footprints.

Governments also have a huge role to play in this mix. There is a need for regulatory frameworks and policies that address energy and environmental concerns. Governments can incentivise the use of renewable energy and other sustainable practices in blockchain operations, prompting entrepreneurs to align with the sustainability goals of the continent. They can also develop comprehensive policies that establish a balance between blockchain’s potential benefits with environmental responsibility.

As the adoption of blockchain continues to increase throughout the African continent, it is essential to strike a balance between harnessing the technology’s benefits and mitigating the environmental risks. While blockchain brings the new era of the internet to our fingertips, its energy unsustainability and environmental impact should not be disregarded. We need to be environmentally responsible and create a safe continent for us and our children to live in. By adopting energy-efficient consensus mechanisms, harnessing alternative energy sources, focusing on renewable energy, and adopting improved regulatory frameworks, we can pave the way for sustainable blockchain implementation that aligns with the sustainable energy goals.