Ethereum (ETH)

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Field

Content

General information

S.1

CASP Name

BB TRADE ESTONIA OÜ

S.2

Relevant legal entity identifier

984500L05A5D0E66Q610

S.3

Blockchain network name

Ethereum

S.4

Name of the crypto-asset

ETH

CHZ

ZND

USDC

AAVE

COMP

FET

LINK

MANA

MKR

S.5

Consensus Mechanism

Proof of Stake (PoS)

S.6

Incentive Mechanisms and Applicable Fees

Ethereum's PoS mechanism, known as "Casper" or more broadly as the Beacon Chain, relies on validators who "stake" 32 ETH (or join staking pools) to participate in block creation and validation.

Validators are randomly selected to propose and attest to new blocks.

Incentives: Validators earn rewards in ETH for proposing and attesting to valid blocks. They also receive a portion of transaction fees.

Penalties: Validators face penalties (slashing) for malicious behavior (e.g., double-signing) or inactivity, ensuring network integrity.

This mechanism significantly reduces energy consumption compared to PoW, as it eliminates the need for competitive computational mining.

S.7

Beginning of the period to which the disclosure relates

2024-01-01

S.8

End of the period to which the disclosure relates

2024-12-31

Mandatory key indicator on energy consumption

S.9

Energy consumption

~7,500,000 kWh per calendar year

S.10

Energy consumption sources and methodologies

The energy consumption of the PoS Ethereum network is primarily driven by the electricity consumed by validator nodes that secure the blockchain. Methodologies involve estimating the power consumption of typical validator hardware (e.g., consumer-grade computers or dedicated servers) and scaling this by the number of active validators/nodes. The decentralized and global nature of the network means these estimates are derived from distributed node locations and average hardware requirements. This figure represents a ~99.98% to 99.99% reduction compared to Ethereum's prior Proof of Work consumption.

Supplementary key indicators on energy and GHG emissions

S.11

Renewable energy consumption

~48%

S.12

Energy intensity 

~0.0026 kWh per transaction

S.13

Scope 1 DLT GHG emissions – Controlled

0 t CO2eq per calendar year

S.14

Scope 2 DLT GHG emissions – Purchased

~2,800 t CO2eq per calendar year

S.15

GHG intensity 

~0.00001 kg CO2eq per transaction

S.16

Key energy sources and methodologies

Energy sources for Ethereum validators are diversified globally, reflecting the energy mix of the regions where validator nodes are geographically located. This includes a mix of conventional sources (e.g., natural gas, coal, oil) and sustainable sources (e.g., hydro, solar, wind, nuclear). Methodologies for determining the energy mix involve geo-locating nodes and applying regional electricity grid carbon intensity data from sources such as Our World in Data, Ember, and the Energy Institute.

S.17

Key GHG sources and methodologies

GHG emissions are predominantly Scope 2, resulting from the indirect emissions associated with the purchased electricity consumed by the validator nodes. Methodologies involve multiplying the estimated electricity consumption by the carbon intensity (g CO2eq/kWh) of the electricity grids in the regions where these nodes operate. This includes accounting for global distribution of validators to accurately reflect the average carbon footprint of the energy sources used.