Ethereum, the second largest crypto network, is reducing its energy use

Ethereum, the second largest crypto network, is reducing its energy use


Ethereum, the world’s second largest cryptocurrency network, is about to switch to a new system that will use much less electricity.

why does it matter: One of the biggest hits on cryptocurrency is focusing on the massive amount of its power Networks consume. But with this change, trading one of the leading currencies will be no more energy consuming than playing a video game online.

How it works: Cryptocurrency networks use so-calledconsensus mechanisms“To make sure transactions are valid. These tools keep track of who owns what and ensure that no one is spending any currency that is not theirs.

  • The original consensus mechanism, “Proof of Work,” is why cryptocurrencies use so much power.
  • Ethereum is turning to a new strategy, “Proof of Stake”. It will be a costly shift, but after it happens, Ethereum’s energy usage could be only about 1% of what it used to be, according to Ethereum Foundation.
  • The key known as mergehe is expected to happen Just after midnight ET tonight. Users should not notice anything different once it happens.

Yes, but: So far, Ethereum has used a lot of power, but Bitcoin has always been – and will always be – the largest user of power in the industry, by far.

Our thought bubble: After years of preparation, The Merge is the biggest crypto moment of 2022, following the end of a bull market in May.



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