Addressing the Sustainability of Distributed Ledger Technology

Gola, Carlo; Sedlmeir, Johannes

doi:10.2139/ssrn.4032837

Cited by 12 publications

(4 citation statements)

References 11 publications

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“…In summary, PoW-based blockchains are safe, yet they rise concerns related to energy consumption (e.g. [41,42]) and sustainability [43]. Notwithstanding, today, Bitcoin is considered a full-fledged financial asset.…”

Section: Blockchain and Cryptocurrenciesmentioning

confidence: 99%

The rise of rationality in blockchain dynamics

Di Antonio,

Vinci,

Pietronero

et al. 2023

New J. Phys.

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Taking informed decisions, namely acting rationally, is an individual attitude of paramount relevance in nature and human societies. In this work, we study how rationality spreads in a community. To this end, through an agent-based model, we analyse the dynamics of a population whose individuals, endowed with a rational attitude controlled by a numerical parameter, play a simple game. The latter consists of multiple strategies, each associated with a given reward. The proposed model is then used as a benchmark for studying the behaviour of Bitcoin users, inferred by analysing transactions recorded in the Blockchain. Remarkably, a population undergoing a sharp transition from irrational to rational attitudes shows a behavioural pattern similar to that of Bitcoin users, whose rationality showed up as soon as their cryptocurrency became worth just a few cents (USD). To conclude, a behavioural analysis that relies on an entropy measure combined with a simple agent-based model allows us to detect the rise of rationality across a community. Although further investigations are essential to corroborate our results, we deem the proposed approach could also get used for studying other social phenomena and behaviours.

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Section: Blockchain and Cryptocurrenciesmentioning

confidence: 99%

The rise of rationality in blockchain dynamics

Di Antonio,

Vinci,

Pietronero

et al. 2023

New J. Phys.

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“…1) Cryptocurrency Technology: An extensive body of work has investigated the electricity consumption characteristics of cryptocurrencies [16], [17], [25], showing that these differ fundamentally (see Table I). Early permissionless cryptocurrencies, building on PoW consensus (type III in Table I), have been criticized for their extreme electricity consumption [13]- [21].…”

Section: A Background Literaturementioning

confidence: 99%

The More You Know: Energy Labelling Enables More Sustainable Cryptocurrency Investments

Drăgnoiu,

Platt,

Wang

et al. 2023

2023 IEEE 43rd International Conference on Distributed Computing Systems Workshops (ICDCSW)

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“…Also, Ethereum is still undergoing a transition from PoW to PoS. In this view, regulators are actively discussing whether measures against PoW cryptocurrencies' high energy consumption should be taken (Gola & Sedlmeir, 2022).…”

Section: Heterogeneity Of Blockchainsmentioning

confidence: 99%

Decentralized Finance (DeFi): Foundations, Applications, Potentials, and Challenges

Gramlich,

Principato,

Schellinger

et al. 2023

SSRN Journal

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Addressing the Sustainability of Distributed Ledger Technology

Cited by 12 publications

References 11 publications

The rise of rationality in blockchain dynamics

The rise of rationality in blockchain dynamics

The More You Know: Energy Labelling Enables More Sustainable Cryptocurrency Investments

Decentralized Finance (DeFi): Foundations, Applications, Potentials, and Challenges

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