# kaal:claim:2992962-007

**Claim.** Proof of work mining carries significant externalities: the authors estimate that the total energy cost of running the global network of computers solving proof of work puzzles was around 700 million US dollars per year before publication.

**Type.** empirical  **Support.** evidenced

**Holds when.**

- proof of work consensus, before publication of the article in 2017

**Source quote.**

> One problem with proof-of-work mining is that there are significant externalities. Before the publication of this article, the total energy costs for running the global network of computers devoted to solving the proof-of-work puzzles was estimated at around $700 million USD per year.

**From.** Wulf A. Kaal, Craig Calcaterra, *Crypto Transaction Dispute Resolution* (2017), Mathematical Principles and Foundations: Ethereum Proof of Stake, page 22

**Cite as.** Wulf A. Kaal, Craig Calcaterra, Crypto Transaction Dispute Resolution (2017). SSRN: https://ssrn.com/abstract=2992962

**Verify.** sha256 of source PDF `80b92e67594394e38af41b769327936833de8e25d6cf3def966a6ba13bc83d17` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Calcaterra%20-%202017%20-%20Crypto%20Transaction%20Dispute%20Resolution.pdf

**Failure mode.** proof-of-work-energy-externality  (family: environmental-and-resource-cost)

**Topics.** consensus-and-security

**Keywords.** proof-of-work, energy-consumption, externalities, proof-of-stake

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/3782198-031
- extended_by: https://wulfkaal.github.io/claims/3125822-033

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.