We discussed the environmental implications of cryptocurrencies last summer. SolarCoin is one of several cryptocurrencies focused on sustainability. However, some mainstream cryptocurrencies, are becoming more environmentally friendly.
After Bitcoin, ETH is the second most valuable crypto currency. The crypto currency recently switched from a proof of work to a proof of stake model as part of the merge software upgrade. This upgrade alters how ETH network transactions are managed.
Below, we explain what has changed and whether these changes have made Ethereum a more environmentally friendly crypto currency. We previously discussed how making Ethereum more sustainable could help it gain traction. The Merge could play a significant role in this.
What exactly is “The Merge”?
The term “merge” refers to a change in the Ethereum network’s security system. The Ethereum network will use proof of work to validate transactions and provide community consensus on who owns what Ethereum until mid-September 2022.
A sizable number of people in the community, however, were running a parallel proof of stake system. These two systems were combined during the recent upgrade.
What Has Modified?
Proof of work worked by having “miners” compete to burn as much electricity and use as much computational power as possible to demonstrate that they had done some work.
The winner would then be able to validate transactions from the previous ten minutes as well as a certain amount of Ethereum.
Proof of stake, on the other hand, grants people with a significant Ethereum “stake” the right to validate Ethereum transactions.
Ethereum is Greener but Not Zero-carbon
While the power required by the Ethereum network has been reduced by approximately 99%, it is not zero-carbon.
Ethereum has always aimed to be the most widely used block chain by enabling developers to build smart contracts, NFTs, decentralized finance systems, and apps on its block chain.
These utilities, as well as the amount of trust people have in ETH as a result of this merger, are what have caused its price to stabilize so quickly following the recent crypto currency crash.
According to OKX.com’s the current price charts, the merger had no significant impact on its price, with the decrease caused by a full market crash.
To read our blog on “Belgium claims that Bitcoin and Ethereum are not securities,” click here
