Ethereum crypto slashes energy use with major upgrades

Ethereum, the second-largest cryptocurrency, has converted to proof-of-stake, which has reduced its energy requirements. The move, which has been in the works since 2016, will have little impact on the typical Ethereum user, but it will put miners out of work.

According to the Ethereum Foundation, the new system will consume 99.95% less energy. The update, which alters how transactions take place and how ether tokens are produced, might offer Ethereum a significant advantage in its pursuit of competitor blockchain bitcoin.

“We believe this is a historic moment that will cause ETH to outperform the larger crypto market for some time,” said Richard Usher, head of over-the-counter trading at London-based crypto business BCB Group.

And we finalized!

Happy merge all. This is a big moment for the Ethereum ecosystem. Everyone who helped make the merge happen should feel very proud today.

— vitalik.eth (@VitalikButerin) September 15, 2022

You will not be able to withdraw your ethereum once you’ve staked it to validate the network for probably six to twelve months – there’s no specified direction from developers on ethereum yet.

Cutting energy use by more than 99% will also help to decrease the barrier to entry for institutional investors, who have been wary of contributing to the climate issue. The White House issued a study last week warning that proof-of-work mining operations might stymie efforts to combat climate change.

ETH will not become quicker, cheaper, or more scalable as a result of the update.