The Cambridge Center for Alternative Finance issued a report in June titled 'Ethereum after the Merge: A Change in Power,' revealing that Ethereum's energy consumption dropped by nearly 99.98% following its consensus mechanism change on 15 September 2022. The network's annual power demand decreased from 2.4 GW to 7.87 GWh, while total emissions fell from 10.3 MtCO₂ to 2.37 ktCO₂e. The transition, known as 'The Merge,' shifted Ethereum from proof-of-work to proof-of-stake, achieving this reduction through a single architecture software change.
Ethereum Energy Consumption Dropped to 7.87 GWh Annually
The report found that pre-merge Ethereum energy demand climbed to 2.4 GW, equivalent to the demand of a nation-state the size of Iceland. After the 15 September 2022 event, the network reduced its power demand by 3.5 orders of magnitude to 7.87 GWh per year, equivalent to roughly 0.90 MW per day.
Cambridge estimates are based on a network-weighted average of 105 watts per node. The center stated, "Taken together, the two measures show that while Ethereum is one of the larger consumers in absolute terms, it is comparatively efficient relative to its economic weight."
The Ethereum network's footprint reaches half of what the British Museum needs and only a fraction of what global platforms like Netflix need to operate, roughly equivalent to the energy the Eiffel Tower consumes.
Ethereum Consumes Less Energy Than Solana and More Than NEAR
Cambridge's estimates set Ethereum well below competitors like Solana, which reaches over 13.4 GWh per year, but above NEAR, which registers 5.11 GWh per year.
Legacy Banking System Uses 260 TWh Compared to Ethereum's 7.87 GWh
The report established a comparison with traditional financial networks, estimating that the legacy banking system—including data centers, branches, and ATM infrastructure—used 260 TWh per year. The report assessed, "Against this benchmark, Ethereum's 7.87 GWh (0.0079 TWh) footprint is about 4.5 orders of magnitude smaller, a ratio of roughly 33,000 to one."
Emissions Fell from 10.3 MtCO₂ to 2.37 ktCO₂e Post-Merge
Emissions fell from 10.3 MtCO₂ to 2.37 ktCO₂e, a reduction of nearly 99.98% achieved with a single architecture software change following the 15 September 2022 Merge.
FAQ
What did Ethereum's Merge accomplish on 15 September 2022?
Ethereum's Merge on 15 September 2022 transitioned the network from proof-of-work to proof-of-stake consensus mechanism, reducing annual energy consumption from 2.4 GW to 7.87 GWh and cutting emissions from 10.3 MtCO₂ to 2.37 ktCO₂e—a 99.98% reduction.
How does Ethereum's energy consumption compare to traditional banking systems?
According to the Cambridge report, the legacy banking system uses 260 TWh per year, while Ethereum consumes 7.87 GWh (0.0079 TWh) annually—making Ethereum's footprint roughly 33,000 times smaller than traditional banking infrastructure.
How does Ethereum's energy use compare to other blockchain networks?
Cambridge estimates place Ethereum at 7.87 GWh per year with a network-weighted average of 105 watts per node, which is below Solana's 13.4 GWh per year but above NEAR's 5.11 GWh per year.
