Eliminating the computer "miners" is expected to reduce Ethereum's electricity consumption by 99 percent.

Ethereum Merge - Will it inspire lower carbon emissions across all Blockchains?

The second-largest cryptocurrency in the world, Ethereum, is anticipated to begin a technical transition that, when finished, should result in a 97% reduction in carbon emissions.

In recent years, cryptocurrencies have grown incredibly quickly. Unfortunately, because of the massive quantity of electricity consumed by computers to control the buying and selling of crypto coins, they have also contributed significantly to climate change.

Consider Bitcoin, the largest cryptocurrency in the world. Bitcoin uses more energy annually than countries the size of Argentina, who are desperately attempting to cut their energy use.

If the Ethereum transition is successful, there will be tremendous pressure on Bitcoin and other cryptocurrencies to solve this issue.

Digital currency systems known as cryptocurrencies allow users to send money directly to one another online.

Cryptocurrencies are not controlled from a single location, like a central bank, like traditional currencies are. Instead, they are controlled by a worldwide, decentralized network of powerful computers known as a "blockchain." The term "miners" refers to these machines.

The majority of cryptocurrencies employ this technique, which is known as "proof-of-work mining." The utilization of calculations, which take a lot of computer time and electricity to complete, is the main design element. Around 150 terawatt-hours of electricity are used annually only by bitcoin. About 65 million tonnes of carbon dioxide are released into the atmosphere each year from the production of that energy, which is comparable to Greece's emissions.

According to research, emissions from Bitcoin last year were likely to cause 19,000 more fatalities in the future.

The proof-of-work methodology wastes energy on purpose. A blockchain's data is meaningless by nature. Its primary function is to save challenging but unnecessary calculations that serve as the foundation for assigning fresh crypto currencies.

However, Ethereum, the most prominent competitor to Bitcoin, is currently adopting a new strategy. It plans to transition to much less polluting computing technologies this month.

The "proof of stake" approach will replace the "proof of work" concept as part of the Ethereum project.

According to this concept, users stake sizable amounts of blockchain tokens (in this case, Ethereum coins) as collateral to authenticate cryptocurrency transactions. Users forfeit their stake if they are dishonest.

Importantly, it will eliminate the need for the extensive network of supercomputers currently used to verify transactions because consumers will be performing the very simple task of verifying transactions themselves.

Eliminating the computer "miners" is expected to reduce Ethereum's electricity consumption by 99 percent.

Proof of stake is used by certain minor cryptocurrencies, but it has only been used on the margins up until now. One example is the Ada token, which is traded on the Cardano platform.

Ethereum has been using test blockchains to execute the new concept for the past year. However, the model will be integrated into the primary platform this month.

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Written By

Petrache Ionut

Sep 8, 2022