NEW YORK – The Ethereum blockchain’s software has been overhauled, drastically reducing its energy consumption, its inventor and co-founder tweeted on Thursday.
According to the Ethereum Foundation, the new system will use 99.95% less energy. To supporters, the upgrade represents a significant advantage as Ethereum strives to surpass rival blockchain bitcoin.
Most blockchains consume a lot of energy, which has sparked criticism from environmentalists and some investors. According to researcher Digiconomist, before the software upgrade known as Merge, a single transaction on Ethereum used as much power as an average US household uses in a week.
The overhaul has changed how transactions on the Ethereum blockchain occur and how ether tokens, the second-largest crypto coin after bitcoin, is created.
Ethereum has moved from a “proof of work” system, in which energy-hungry computers validate transactions by solving complex maths problems, to a “proof of stake” system, where individuals and companies act as validators, using their ether as collateral, to win newly created tokens.
The cryptocurrency “Ether” was little changed at RM7392.59 as of 0713 GMT. – Reuters
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