Crypto

Ethereum blockchain’s big energy moult succeeds

Long awaited update

News

The second most popular public blockchain in the world has just completed an incredible technological transformation. Although it is too early to formalize the success story, a moment in history is being written before our very eyes.

The last block was mined in proof of work mode. And the first in proof-of-stake. The “merger”, the most important update in the recent history of cryptocurrencies, took place on September 15, 2022. After a long and difficult migration, Ethereum officially joined hundreds of blockchains in the so-called Proof of Stake consensus mechanism (proof of stake). PoS). Read the full text of the article on the Numerama website.

More responsible model

Change

Joseph Lubin, co-founder of Ethereum and CEO of Consensys, details the implications of the Ethereum protocol change for the Ethereum ecosystem and money supply.

The main impact of the “Merger” is, first of all, an unprecedented gain in energy efficiency with a 99.5% reduction in the carbon footprint, which is due to the reduction in the energy required for the blockchain.
We are also increasing the diversity and decentralization of the network by moving from a system with less than 10,000 independent “validator nodes” to a system with more than 400,000 “validators”. This decentralization is the source of trust in the blockchain. Read the full text of the article on the Figaro website.

Risks pointed out by detractors

critics

Proof-of-Work advocates fear that the merger will make Ethereum a more centralized protocol open to government interference, as it will be in the hands of those with the most ether. Specifically, they are thinking of platforms that serve as custodians on behalf of investors, such as Coinbase, Kraken, or Binance, or even the Lido staking protocol. More and more regulated companies.

Another criticism is related to the security of the new protocol, which would be easier to attack by reaching 51% of the cryptocurrency mass in ether than by accumulating 51% of mining power. This argument is opposed by Ethereum France, who believes that blockchain damage is much more expensive with proof of stake than with proof of work. Read the full article on the L’Usine Digitale website.

Binance resumes trading on the platform

Context

Ether, a cryptocurrency directly related to Ethereum, accounts for about 20% of the total value of virtual currencies in existence, second only to Bitcoin (40%). But Ethereum has a much broader range of applications than its competitor as it serves as a medium for multiple uses such as NFT exchanges.

With rapid growth, Ethereum has decided to switch to a less power-hungry system. A risky operation that some compare to replacing a diesel engine with an electric motor in a moving vehicle.

Following this “mutation,” on Thursday, the world’s largest cryptocurrency exchange, Binance, announced on Twitter that it was resuming Ethereum trading. Binance prudently suspended these exchanges prior to the operation, like most other cryptocurrency exchanges. Read the full text of the article on the Capital website.

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