Ethereum Unification: Software upgrade can reduce power consumption

The long-awaited innovation, known as “The Merge,” will reduce ethereum’s energy consumption by nearly 99.95%, according to the Ethereum Foundation, a non-profit organization dedicated to supporting cryptocurrency and related technologies.

“Merge refers to the merging of the original Ethereum Mainnet with a separate blockchain called the Beacon Chain,” he added.

Until now, both ethereum and bitcoin ran on a so-called “proof-of-work” mechanism, which required high-powered computers to solve complex puzzles. The merger moves ethereum to a mechanism called “proof-of-stake”, which is much more efficient.

Vitalik Buterin, a 28-year-old Russian-Canadian programmer, helped create “All Happy Together.” Ethereum said on Twitter. “This is a big moment for the Ethereum ecosystem. Everyone who helped bring it together should feel very proud today,” he added.

According to the co-founder, the renovation “will reduce the world’s electricity consumption by 0.2%”.

Although cryptocurrencies have seen a dramatic rise in recent years, observers say they are terrible for the environment. According to Digiconomist, a platform that tracks cryptocurrency energy usage, a single Ethereum transaction is equivalent to the weekly energy consumption of an average US household.
at the beginning of the month Digiconomist said that it is power saved as a result of the renewal “it is likely to be comparable to the electricity consumption of a country like Portugal”. It may also become the “final nail in the coffin” for Bitcoin’s transaction mechanism.

Ethereum fell 0.7% after the news, trading at $1,592.78, but analysts say the upgrade could have a big impact on the crypto world in the long term. The world’s most valuable cryptocurrency, bitcoin, fell nearly 1% to trade at $20,174, according to CoinDesk.

“It’s been a long time in the making and the question on traders’ lips right now is whether this will be the next bullish catalyst or ‘sell’ event for crypto,” wrote Craig Erlam, a senior market analyst at Oanda. a note on Thursday.