After years of anticipation, cryptocurrency raised Finally carried out a Main network upgrade This completely changes how the blockchain validates transactions, mints new coins and secures its network. Dubbed Proof of Stake, this system has reduced Ethereum power consumption by more than 99%.
One of the biggest goals of the cryptocurrency industry has been using energy for cash. But it is unlikely that Bitcoin You will do the same.
Instead, the Bitcoin network adheres to a system called Proof of Work, where highly specialized computers try to guess a winning number that validates transactions and generates new coins. This is what is known as mining.
Currently, guessing the winning number requires more than a hundred sextillion tries. All of this work helps secure the network by making it nearly impossible for bad actors to gain enough computing power to take control. But Recent Research It also shows that in 2020, bitcoin mining consumed 75.4 TWh of electricity, more than all of Austria or Portugal.
This is the system previously used by ethereum. But now the network has replaced miners with validators. Instead of playing a huge arithmetic guessing game, validators are hired to verify new transactions, earning ether as a reward for doing so.
To ensure that these validators are behaving honestly, they basically have to make a security deposit by putting a certain amount of Ether into the network. If the auditor tries to attack the network, he will lose his stake. Ethereum proponents say this penalty will make the network more secure, while bitcoin enthusiasts see Proof of Work as the most secure, tried-and-true approach.
However, the optics of using Bitcoin’s energy in the midst of the global climate crisis has become an issue for the network. In response, some major bitcoin miners have begun searching for renewable energy to power their data centers and trying to change the narrative by promoting the use of bitcoin for energy as an asset, helping drive investment in the country’s aging electrical grid.