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Ethereum (ETH) Advances Towards Solving Major Concerns With ETH 2.0

Ethereum

thenewscrypto.com 23 March 2022 09:09, UTC
  
Reading time: ~2 m

  • The price of Ether has risen by roughly 13% in the last week.
  • Ethereum blockchains energy usage is expected to be reduced by 99.5 percent.

One step closer to solving a primary objection to cryptocurrency: its environmental effect, thanks to modifying the technology behind various cryptocurrencies, including Ether. A long-standing criticism of digital currencies like Bitcoin and Ethereum is their high impact on the environment due to their mining operations. Many mines are located in areas where the cost of electricity is low, often due to coal or other coal-based sources.

ETH 2.0 Coming Soon

Ethereum and numerous other digital currencies and initiatives using non-fungible tokens (NFTs) may soon be rendered obsolete due to modifications made to a significant blockchain. For example, Ethereum blockchains energy usage is expected to be reduced by 99.5 percent due to upgrading to the so-called ETH 2.0.

Unlike Ethereum, which changed its technology to use less energy, Bitcoin has no intentions to do the same. However, last week, a test that mimicked the more extensive merger of Ethereum’s proof-of-work and proof-of-stake chains was a step closer to becoming a reality with a primarily successful outcome. As a result of the so-called “merge,” Ether’s price has outperformed Bitcoin’s last week.

The price of Ether has risen by roughly 13% in the last week, while the price of Bitcoin has risen by about 7%. A significant factor in this shift is the Ethereum network, which uses a method known as proof-of-work. Miners formerly needed powerful computers to solve complex math problems to record a transaction on the blockchain—a public, digital ledger. 

In what is known as “proof-of-stake,” miners will soon be able to validate transactions by staking part of their crypto in dedicated wallets after the environmentally-friendly upgrade. Because it doesn’t need the use of expensive computers to tackle mathematical problems, this method is less energy-intensive.


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