Crypto

How the Ethereum Merger Made Crypto Mining More Sustainable

After years of anticipation, cryptocurrency ethereal finally set up a major network upgrade it completely changes the way the blockchain verifies transactions, mints new coins, and secures its network. Called proof-of-stake, this system has reduced Ethereum’s energy consumption by more than 99%.

Energy usage has been one of the main targets of criticism from the cryptocurrency industry. But it is unlikely that bitcoins will follow.

Instead, the bitcoin network sticks to a system called proof-of-work, in which highly specialized computers attempt to guess a winning number which is used to validate transactions and create new coins. This is called mining.

Right now, guessing a winning number takes over a hundred sextillion tries. All of this work helps secure the network by making it nearly impossible for bad actors to accumulate enough computing power to take control. But recent search also shows that in 2020 Bitcoin mining consumed 75.4 terawatt hours of electricity, more than all of Austria or Portugal.

This is the system formerly used by Ethereum. But now the network has replaced miners with validators. Instead of playing a massive computer guessing game, validators are tasked with verifying new transactions and earning ether as a reward.

To ensure that these validators are acting honestly, they basically need to make a security deposit by staking a certain amount of ether coins in the network. If a validator attempts to attack the network, they will lose their stake. Ethereum proponents claim this penalty will make the network more secure, while bitcoin enthusiasts consider proof of work to be the safest, most proven, and truest approach.

However, the optics of bitcoin’s power consumption amid the global climate crisis has become a problem for the network. In response, some big bitcoin miners are starting to look for renewable energy to power their data centers and are trying to change the narrative by touting bitcoin’s energy consumption as an asset, as it helps drive investment in the power grid. aging of the country.

Watch the video to learn more about how cryptocurrencies are trying to go green

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