cryptocurrency

Consolidation is coming – what are the green benefits?

The merger, which will see Ethereum transition into a new era, leaving behind another consensus and initiation mechanism, could not have happened at a better time. Energy prices are rising, news of global warming is alarming, and calls for reduced energy and greener solutions are growing every day. The stakes for the planet and its inhabitants are enormous.

Ethereum has been a power-inefficient network since day one, due to the legacy security system called Proof of Work, a system in which so-called “miners” gain the right to update the next block of transactions. This right is given by providing evidence by solving difficult computer puzzles, after which the miners earn new tokens in return. But there was a problem, in order to avoid a lot of new tokens from flooding the market, puzzles became more difficult to solve over time, and therefore also required more energy.

digital world It is estimated that Ethereum miners have consumed 44.49 TWh per year which amounts to 5.13 GW on an ongoing basis. This means that PoS (Proof-of-Stake), and Meganism Ethereum after the merger will be 2,000 times more energy efficient based on the above estimates – and that number may remain on the conservative side.

After the merger, a reduction of at least 99.95% in total energy use is expected. Proof of Stake only requires the approval of the designated validators that the transaction is accurate, and once enough nodes have verified the transaction, it simply goes through. There is no longer a need to solve challenging and energy-consuming computer puzzles.

Juno Salovara, Head of Platform Development at Regenerative Finance (ReFi) my classcommented ,

“Proof of Stake merger significantly reduces Ethereum’s power consumption by 99.95%. In terms of power consumption, it will now sit alongside other protocols that are considered sustainable, such as Tezos, Solana, and Algorand. As it remains the second largest blockchain in the world by a margin. Large, it offers an opportunity for sustainable blockchain projects looking for a home.

Previously, a single deal used enough energy to power an average American family for an entire week. After merging, it will be closer to boiling a kettle.”

Therefore, after Ethereum moves to a new transaction validation process, which should take place around the end of September, the environmental impact should be significantly reduced. No more completely solving puzzles, thus eliminating the need for powerful hardware and massive amounts of electricity to keep the blockchain going. That is, if all goes well. So what could possibly go wrong?

The developers say there is nothing to worry about – they are confident that the integration will not have any impact on the security of the assets or the functionality of the application.

But there is always a but. Digital assets currently built on Ethereum Can be repeated while merging into a file forked proof of work network. While the real versions of NFTs and stablecoins will exist on the post-merger and proof-of-stake network, there may be copies for that. The owners of these assets can sell these surplus tokens to earn money.

But overall, incorporation should become a positive shift. The new Ethereum network will appeal to organizations that have concerns about the current environmental impact of Proof of Work. Small computers that require less power will be able to use the new network. Ethereum’s security will also improve. Network attack will become a much more costly affair. But the planet will be the big winner by reducing energy use by 99.95%.

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