Ethereum is the world’s second-biggest cryptocurrency.
Recently, they replaced proof-of-work with proof-of-stake, removing the need for miners and reducing energy use.
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Ethereum making changes that will save energy
Ethereum developers successfully completed the “merge.” The merge included a transition from proof-of-work to now, exclusively using proof-of-stake. This transition will reduce energy consumption by about 99.95%.
The Ethereum blockchain has existed since July 2015. This recent transition was in the works for several years prior to the completion of the merge. This new system does not require powerful graphics cards that were previously required to maintain the blockchain and create new ether.
Before the merge, Ethereum’s annualized power consumption was comparable to the country of Chile’s. Their carbon footprint was comparable to Hong Kong’s. Using proof-of-stake has eliminated the need for energy-intensive mining.
The change should be seamless for people who hold ether. Funds will still be accessible without any user action. There is no such thing as ‘old ETH’/’new ETH’ or ‘ETH1’/’ETH2’. Wallets also work exactly the same. If you receive information that there are two versions– it is a scam.
Before the merge, mining rewards totaled about 13,000 ETH per day. However, with this system, rewards for staking were 1,600 ETH per day. A validator must deposit 32 ETH into the deposit contract and run software including an execution client, a consensus client, and a validator.