Genaro Network (GNX)
4 min readFeb 28, 2022


How Genaro Network Solves the Energy Wastage Problem of PoW

Using Green and Sustainable Consensus Mechanisms to Solve POW’s Energy Wastage

Genaro Network is the world’s first efficient programmable public chain that integrates a point-to-point storage system. Its consensus mechanism can effectively solve PoW’s energy wastage problem. What is the best way to understand Genaro Network’s SPoR + PoS consensus mechanism? Well, before understanding this innovative consensus mechanism, let us briefly analyze what the mainstream consensus mechanisms PoW and PoS are all about.

PoW (Proof of Work) consensus algorithm: this is the current consensus algorithm of the Bitcoin and Ethereum networks. It uses hash computation to compete for the rights to publish a new block on the network.

Proof of Stake (PoS) consensus algorithm: selecting validators in proportion to their quantity of holdings in the associated cryptocurrency. PoS is a consensus algorithm now used in many public chains as an alternative to PoW.

Compared to PoS, PoW requires a lot of electricity and computing power to “mine” for new blocks. For example, when it comes to PoW, a user can buy a new mining rig for $10,000, join the network as a miner, and get rewarded for creating new blocks. When it comes to PoS, users can take the same $10,000 to buy tokens, then stake them on the network to have the same opportunity of generating new blocks for rewards.

What if the user spends $20,000? In PoW, he can buy better and newer mining rigs and get more hash rates for more rewards. Similarly, in PoS, staking more tokens means that he is more likely to generate a new block and receive a reward. In PoS, a verifier with a deposit of 10,000 tokens is 10 times more likely to be selected by the system than a verifier with a deposit of 1,000 tokens.

However, a fundamental difference between PoW and PoS is that miners belonging to the former category will experience depreciation and wear and tear on their mining rigs, and these rigs may even be outclassed by future models. In contrast, PoS miners can simply retrieve their staked tokens and sell them to get back their funds.

Replacing PoW with PoS

It bears mentioning that PoW has many advantages, such as robust fault tolerance. Only when more than 51% of nodes are attacking the network will it fail. However, its disadvantages are also obvious: PoW consensus algorithm typically has low throughput, consumes a large amount of resources, and has long average block times.

A study in the UK found that more than 29.05 terawatt-hours (1 terawatt-hour is 100 million kilowatt-hours) of electricity was used to mine Bitcoin in 2017. This value was more than the average annual electricity consumption of 159 countries around the world. Ireland, with a population of 4.77 million, uses just 25 terawatt-hours of electricity a year. The latest estimates for this year put the figure close to 59.6 TWh, which is comparable to the average energy consumption of the nation of Columbia.

Without radical institutional changes, the amount of electricity spent on PoW will sooner or later exceed the average annual electricity consumption of any country in the world. Moreover, the consumption of primary energy (such as coal, oil, hydro, and natural gas) needed to generate electricity will also have an impact on the global environment. In the long run, Bitcoin mining may end up causing an energy crisis, and people may start to speak up against cryptocurrencies in general.

When compared with PoW, the PoS consensus algorithm employed by Genaro Network has the following advantages: Assuming that the fault tolerance rate remains unchanged at 50%, the performance of the overall network is improved while the energy consumption rate has drastically fallen.

Let us take a look at both mining mechanisms in another way: when miners compete to be the first to verify Bitcoin transactions, it is a zero-sum game whereby there will only be a single winner. The resources consumed by the losers will not be reimbursed once a winner has been chosen. The hash rates and computing power used will not be applicable for the next block and can be considered a waste.

In contrast, PoS miners will not lose their tokens if they do not get selected to publish the next block. In addition, the PoS mechanism allows for further improvements and adjustments. The EOS network uses a delegated-proof-of-stake (DPoS) mechanism, where token holders can delegate their holdings to selected validators to receive rewards. This mechanism is also more efficient than the typical PoW consensus algorithm.

The Genaro Network is the first smart data ecosystem with a Dual-Strata Architecture, integrating a public blockchain with decentralized storage. Genaro pioneered the combination of SPoR (Sentinel Proof of Retrievability) with PoS (Proof of Stake) to form a new consensus mechanism, ensuring stronger performance, better security, and a more sustainable blockchain infrastructure. Developers can enjoy a one-stop platform to deploy smart contracts and store the data needed by DApps simultaneously. The network’s mission is to ensure the secure migration of the core Internet infrastructure to the blockchain.



Genaro Network (GNX)

First smart data ecosystem with a Dual-Strata Architecture. See full blog at Smart Data Ecosystem Publication or