Carbon footprint of a third-generation cryptocurrency – Cardano and comparison with other cryptocurrencies and traditional banking system

The aim of this study was to assess the carbon footprint of the cryptocurrency- Cardano. This study addressed three questions: 1) What is the carbon footprint of Cardano? 2) How does the energy consumption of Cardano affect its overall environmental sustainability? and 3) How does the carbon footpri...

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Main Author: Koju, Narendra
Other Authors: Jyväskylän yliopiston kauppakorkeakoulu, Jyväskylä University School of Business and Economics, Jyväskylän yliopisto, University of Jyväskylä
Format: Master's thesis
Language:eng
Published: 2025
Subjects:
Online Access: https://jyx.jyu.fi/handle/123456789/103398
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author Koju, Narendra
author2 Jyväskylän yliopiston kauppakorkeakoulu Jyväskylä University School of Business and Economics Jyväskylän yliopisto University of Jyväskylä
author_facet Koju, Narendra Jyväskylän yliopiston kauppakorkeakoulu Jyväskylä University School of Business and Economics Jyväskylän yliopisto University of Jyväskylä Koju, Narendra Jyväskylän yliopiston kauppakorkeakoulu Jyväskylä University School of Business and Economics Jyväskylän yliopisto University of Jyväskylä
author_sort Koju, Narendra
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description The aim of this study was to assess the carbon footprint of the cryptocurrency- Cardano. This study addressed three questions: 1) What is the carbon footprint of Cardano? 2) How does the energy consumption of Cardano affect its overall environmental sustainability? and 3) How does the carbon footprint of Cardano compare with that of earlier-generation cryptocurrencies and the traditional banking system? Data for Cardano’s blockchain and office operations were obtained from Cardano’s online blockchain monitoring tools and Cardano Foundation’s official webpages. The carbon footprint of Cardano was calculated based on the annual electricity consumption of its blockchain network and estimated emissions from office operations and business flights. Carbon footprint data for Bitcoin, Ethereum, and traditional banking system were obtained from previously published studies. The total carbon footprint of Cardano and annual electricity consumption was found to be 5.21 GWh and 2249.6 t CO2, respectively. The findings indicate that Cardano’s Proof-of-Stake (PoS) technology is highly energy-efficient, consuming only a tiny fraction of the energy required by earlier-generation cryptocurrencies and traditional banking systems. Specifically, Cardano’s carbon footprint is only half of Ethereum 2.0 and many thousands of times smaller than that of Bitcoin and traditional banking systems. These results suggest that PoS-based cryptocurrencies like Cardano may offer a significantly more sustainable alternative for digital financial transactions. Furthermore, the study highlights the vast energy demands of earlier-generation cryptocurrencies and traditional banking systems, underscoring the urgent need for more environmentally sustainable financial technologies. Tämän tutkimuksen tavoitteena oli arvioida kryptovaluutta Cardanon hiilijalanjälkeä. Tutkimuksessa vastattiin kolmeen kysymykseen: 1) Mikä on Cardanon hiilijalanjälki? 2) Miten Cardanon energiankulutus vaikuttaa sen yleiseen ympäristökestävyyteen? ja 3) Miten Cardanon hiilijalanjälki vertautuu aikaisempien sukupolvien kryptovaluuttoihin ja perinteiseen pankkijärjestelmään? Cardanon lohkoketjun ja toimistotoiminnan tiedot kerättiin Cardanon verkkopohjaisista lohkoketjun seurantatyökaluista sekä Cardano Foundationin virallisilta verkkosivuilta. Cardanon hiilijalanjälki laskettiin sen lohkoketjuverkon vuosittaisen sähkönkulutuksen sekä arvioitujen toimistotoiminnan ja liikematkustamisen (lentojen) päästöjen perusteella. Bitcoinin, Ethereumin ja perinteisen pankkijärjestelmän hiilijalanjälkiedot saatiin aiemmin julkaistuista tutkimuksista. Cardanon kokonaishiilijalanjäljeksi ja vuosittaiseksi sähkönkulutukseksi havaittiin 5,21 GWh ja 2249,6 t CO₂. Tulokset osoittavat, että Cardanon Proof-of-Stake (PoS) teknologia on erittäin energiatehokas, kuluttaen vain murto-osan siitä energiasta, mitä aikaisemman sukupolven kryptovaluutat ja perinteinen pankkijärjestelmä käyttävät. Cardanon hiilijalanjälki on vain puolet Ethereum 2.0:n vastaavasta ja monia tuhansia kertoja pienempi kuin Bitcoinin tai perinteisen pankkijärjestelmän. Tulokset viittaavat siihen, että PoS-pohjaiset kryptovaluutat, kuten Cardano, voivat tarjota huomattavasti kestävämmän vaihtoehdon digitaalisiin rahansiirtoihin. Lisäksi tutkimus korostaa aikaisemman sukupolven kryptovaluuttojen ja perinteisten pankkijärjestelmien valtavaa energiantarvetta, mikä alleviivaa kiireellistä tarvetta ympäristön kannalta kestävämmille finanssiteknologioille
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This study addressed three questions: 1) What is the carbon footprint of Cardano? 2) How does the energy consumption of Cardano affect its overall environmental sustainability? and 3) How does the carbon footprint of Cardano compare with that of earlier-generation cryptocurrencies and the traditional banking system?\n\nData for Cardano\u2019s blockchain and office operations were obtained from Cardano\u2019s online blockchain monitoring tools and Cardano Foundation\u2019s official webpages. The carbon footprint of Cardano was calculated based on the annual electricity consumption of its blockchain network and estimated emissions from office operations and business flights. Carbon footprint data for Bitcoin, Ethereum, and traditional banking system were obtained from previously published studies.\n\nThe total carbon footprint of Cardano and annual electricity consumption was found to be 5.21 GWh and 2249.6 t CO2, respectively. The findings indicate that Cardano\u2019s Proof-of-Stake (PoS) technology is highly energy-efficient, consuming only a tiny fraction of the energy required by earlier-generation cryptocurrencies and traditional banking systems. Specifically, Cardano\u2019s carbon footprint is only half of Ethereum 2.0 and many thousands of times smaller than that of Bitcoin and traditional banking systems.\n\nThese results suggest that PoS-based cryptocurrencies like Cardano may offer a significantly more sustainable alternative for digital financial transactions. 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Cardanon hiilijalanj\u00e4lki laskettiin sen lohkoketjuverkon vuosittaisen s\u00e4hk\u00f6nkulutuksen sek\u00e4 arvioitujen toimistotoiminnan ja liikematkustamisen (lentojen) p\u00e4\u00e4st\u00f6jen perusteella. Bitcoinin, Ethereumin ja perinteisen pankkij\u00e4rjestelm\u00e4n hiilijalanj\u00e4lkiedot saatiin aiemmin julkaistuista tutkimuksista.\n\nCardanon kokonaishiilijalanj\u00e4ljeksi ja vuosittaiseksi s\u00e4hk\u00f6nkulutukseksi havaittiin 5,21 GWh ja 2249,6 t CO\u2082. Tulokset osoittavat, ett\u00e4 Cardanon Proof-of-Stake (PoS) teknologia on eritt\u00e4in energiatehokas, kuluttaen vain murto-osan siit\u00e4 energiasta, mit\u00e4 aikaisemman sukupolven kryptovaluutat ja perinteinen pankkij\u00e4rjestelm\u00e4 k\u00e4ytt\u00e4v\u00e4t. 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spellingShingle Koju, Narendra Carbon footprint of a third-generation cryptocurrency – Cardano and comparison with other cryptocurrencies and traditional banking system Master's Degree Programme in Corporate Environmental Management
title Carbon footprint of a third-generation cryptocurrency – Cardano and comparison with other cryptocurrencies and traditional banking system
title_full Carbon footprint of a third-generation cryptocurrency – Cardano and comparison with other cryptocurrencies and traditional banking system
title_fullStr Carbon footprint of a third-generation cryptocurrency – Cardano and comparison with other cryptocurrencies and traditional banking system Carbon footprint of a third-generation cryptocurrency – Cardano and comparison with other cryptocurrencies and traditional banking system
title_full_unstemmed Carbon footprint of a third-generation cryptocurrency – Cardano and comparison with other cryptocurrencies and traditional banking system Carbon footprint of a third-generation cryptocurrency – Cardano and comparison with other cryptocurrencies and traditional banking system
title_short Carbon footprint of a third-generation cryptocurrency – Cardano and comparison with other cryptocurrencies and traditional banking system
title_sort carbon footprint of a third generation cryptocurrency cardano and comparison with other cryptocurrencies and traditional banking system
title_txtP Carbon footprint of a third-generation cryptocurrency – Cardano and comparison with other cryptocurrencies and traditional banking system
topic Master's Degree Programme in Corporate Environmental Management
topic_facet Master's Degree Programme in Corporate Environmental Management
url https://jyx.jyu.fi/handle/123456789/103398 http://www.urn.fi/URN:NBN:fi:jyu-202506115197
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