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.