The House Committee on Energy and Commerce Considers the Energy Impact of Blockchains

On January 20, 2022, The House Committee on Energy and Commerce discussed the long-term effects of the proof-of-work, energy-intensive method for verifying transactions used by blockchains such as bitcoin.

During the hearing it was discussed how some cryptocurrency mining facilities have been working to incorporate renewable energy sources into their practices. However, Rep. Diana DeGette of Colorado pointed to several instances in upstate New York and Pennsylvania where mining operations have utilized fossil-fuel plants for their operations. 

In addition to the committee members, several witnesses were present at the hearing to provide suggestions to the committee. One of the witnesses present was John Belizire, CEO of Soluna Computing, Inc., who responded to DeGette by arguing that, when done properly, cryptocurrency mining could be used to stabilize power grids and make renewable energy more financially sustainable. Belizire proposed an energy-conservation plan in which mining operations can be paused during period of high energy demand and then use up excess energy during times of low demand. 

Another witness Professor Ari Juels, Professor at the Jacobs Technion-Cornell Institute at Cornell University, proposed a complete shift from proof-of-work networks to proof-of-stake as a more energy efficient form of verifying blockchain transactions. A uniform approach to mitigating these energy concerns has yet to be reached, and whether the benefits of cryptocurrency mining will outweigh the costs is uncertain at this time.