A new revolution for cryptocurrencies? As the French are being called to sobriety and electricity prices are rising, the world’s second-largest cryptocurrency, Ethereum, is embarking on a path to reduce its energy costs.
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This “blockchain” is really changing its mode of operation drastically this Thursday, September 15: instead of a system that is now very energy intensive, this “upgrade” will drastically reduce electricity consumption. And the operation promises to be grandiose: it is a change of architecture, with the conditional name “Merger”, “merger”.
Because, like the famous Bitcoin, Ethereum, which makes up about 20% of the total value of existing virtual currencies, has so far worked thanks to the many computers scattered around the world. Their mission was “mining”, in other words, solving increasingly complex calculations to verify transactions … and “it consumes a lot of electricity”, assures Simon Polroth, President of the Association for the Development of Crypto Assets.
“We know that this is a significant energy capacity. According to low estimates, we are still at the consumption of several tens of thousands of households. And if the system remains the same, we are in an uptrend, ”the specialist clarifies. The system is so energy intensive that some countries are now banning cryptocurrency mining.
For Ethereum, this change in mode of operation is a good thing: there is no need for super-powerful computers to verify transactions. “The stated goal is to really reduce energy consumption. We are no longer using computing power, but we are introducing a cash amount into the game – a stake of 32 ether, or 50,000 euros, called “Proof of Stake” (“Proof of Stake” in French, editor’s note – which can be entered in case of poor validation , in case of bad behavior. With the great advantage that it almost eliminates energy consumption. Becomes the basis of the data that is consumed, no more than your bank’s database is for your bank accounts,” says Simon Polrot.
But for its part, the first cryptocurrency Bitcoin does not plan to abandon the mining system.