Ethereum solves a fundamental flaw and beating Bitcoin. A behind-the-scenes change to the technology that underpins numerous cryptocurrencies. Including Ether, has brought the cryptocurrency industry one step closer. To addressing a major source of criticism. The environmental impact of cryptocurrencies.
Years have passed since cryptocurrency miners, such as Bitcoin and Ether. Have been chastised for emitting enormous amounts of pollution. In the process of generating the electricity required to mine them. Because of the high expenses involved. Miners frequently locate their operations in areas where electricity is inexpensive. Typically because it comes from sources such as coal.
However, the most recent updates to a crucial blockchain. Which is used to power the Ether cryptocurrency as well as other competitor cryptocurrencies. And projects based on non-fungible tokens, or NFTs. Suggest that this may be coming to an end in the near future. The modification is expected to reduce the energy consumption. Of the Ethereum blockchain by 99 percent.
It also gives Ethereum a competitive advantage over its rival Bitcoin. Which has made little progress in the area of energy efficiency. Bitcoin, although being under pressure to consume less energy. It has no intentions to update its technology in the same way that Ethereum did.
After a generally successful test that mimicked the bigger merging of Ethereum’s proof-of-work . And proof-of-stake chains last week, it became clear that the transition. That is critical to Ethereum’s energy savings is becoming a reality. Ethereum’s shift is critical to its energy savings. Over the previous seven days, the price of Ether. It has outperformed the price of Bitcoin. Thanks in part to news of the so-called “merge” between the two coins.
Ethereum Solves a Fundamental Flaw and Gained Almost 13% last Week
Ether has gained over 13 percent in the last week to approximately $3,007. While Bitcoin has gained almost 7 percent to $42,622.
The Ethereum network, which runs on the principle of proof-of-work. It affected by the change in policy. This was previously necessary for bitcoin miners to employ powerful computers. To solve complex math problems in order to record a transaction on the blockchain. Which is a transparent, digital ledger.
Miner’s will soon be able to validate transactions by depositing part of their own cryptocurrency. In dedicated wallets, a process known as proof-of-stake. After the environmentally friendly update has implemented. The more the amount of bitcoin a validator stakes. The greater their chances of successfully validating the transaction. And earning a reward in cryptocurrency as a result.
Because it does not necessitate the use of sophisticated computers. To answer mathematical puzzles. This procedure consumes less energy than other methods.
The Ethereum Network is best known for its native cryptocurrency, Ether. Which is the second most popular cryptocurrency behind Bitcoin. In terms of market capitalization. A number of well-known applications are also hosted on it. Including the NFT exchange OpenSea, the popular crypto wallet MetaMask. And the automated token exchange UniSwap.
As of right now, Ethereum solves divided into two distinct chains: the old one. Which uses proof-of-work, and the new one. That uses proof-of-stake. Ethereum will join both chains in a process known as a “merge.” Allowing it to go from proof-of-work to proof-of-stake. Thereby reducing its overall energy usage in the process.
The Integration was intended to be finished by June 30
According to the original schedule, the merger would completed by the end of June. However, according to a blog post by the Ethereum Foundation. A non-profit organization dedicated to supporting the network. No specific date has selected at this time.
It has reported that the shift to proof-of-stake. It could take place this summer by Tim Beiko. An Ethereum engineer who is in charge of updating the blockchain.
When the long-awaited “merge” occurs, green-conscious investors may be more inclined. To participate in projects that run on the Ethereum blockchain. It is according to a recent report. Furthermore, because powerful computers would no longer required. To validate transactions. The change expected to reduce the cost of transaction validation.