Alephium is the first live layer 1 sharded blockchain scaling and improving on Bitcoin core technologies, Proof of Work and UTXO. It delivers a highly performant, secure DeFi & dApps platform with enhanced energy efficiency.
Alephium’s PoLW algorithm reduces the energy consumption of PoW. It offers adaptive rewards based on hashrate & timestamp and enables internal mining cost through burning when the hashrate and energy consumption are significantly high.
The exact way in which the PoLW algorithm works depends on the parameters set. Currently, it is set so that ⅞ of block rewards will be required to mine a new block when the energy consumption is high.
The equilibrium between the miners and the protocol changes dynamically and cannot be determined in advance. However, given the same amount of block rewards and hashrate conditions Alephium uses ⅛ of the energy compared to Bitcoin.
The energy consumption of Bitcoin is approximately linear to the price growth, Alephium is sublinear which allows it to remain under 0.1%.