
Ethereum, one of the most well-known blockchains is up to big change. Currently, the network operates on a Proof-of-Work system. It is the most traditional system for blockchains. However, innovations are appearing quickly.
In a Proof-of-Work system, miners use their computational power to solve math puzzles in order to validate the block. This approach is however very energy consuming.
In the recent year we have come across new ways of validating blocks. The most prominent is Proof-of-Stake, currently used by such networks as Solana or Cardano.
This concept is mainly based on certain cryptocurrencies being collateral in the validating process. Due to this, the whole network consumes much less energy.
Ethereum 2.0 – is meant to be another Proof-of-Stake blockchain. The concept is being worked on since 2020 and the launch is planned for the second quarter of 2022. This may be the breakthrough for Ethereum as since then much more transactions will be possible to maintain in a short period while being low energy consuming and way cheaper.
Summing up, the years-long discussion about crypto being unecological may no longer exist in upcoming years, as we can see the trend of networks becoming more eco-friendly. ETHEREUM 2.0 may be the most prominent example of this trend as also networks such as Solana and Cardano growing rapidly, being worth now tens of billions of dollars.
Sources:
https://blockchain.news/analysis/transition-to-pos-will-improve-ethereum-efficiency-2000-times-ethereum-foundation
https://twitter.com/ethereum?ref_src=twsrc%5Egoogle%7Ctwcamp%5Eserp%7Ctwgr%5Eauthor
That is an awesome move for Ethereum! One of the biggest disadvantages of using ETH was for me, very big energy consumption and I’ve read that The Ethereum Foundation predicts that after the Merge the network will use at least 99.95% less energy than it does in its current state. Improvements and the foundation it sets will allow Ethereum to onboard millions of users without sacrificing decentralization, which is very important