Ethereum will now consume 99.95% less energy

Ethereum will now consume less energy

Ethereum, the second largest cryptocurrency after bitcoin, is cutting down its energy consumption.

Ethereum blockchain’s long-awaited software upgrade to reduce its enormous energy consumption will likely release this week.

The new system will use 99.95% less energy, according to the Ethereum Foundation, an organization that serves as a spokesperson.

The upgrade, known as “Merge,” will hugely impact how the Ethereum blockchain works.

Before the Merge, Ethereum operated through proof-of-work, where computers worldwide competed to solve puzzles to add a new block to the chain.

This used to consume a huge amount of energy as only one could win out of all the minors competing to solve the puzzle simultaneously.

Proof-of-stake is a consensus algorithm used by cryptocurrencies to process transactions and add new blocks to the blockchain.

With proof-of-stake (POS), cryptocurrency owners authenticate block transactions based on how many coins a validator stakes.

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