The Ethereum Foundation is seemingly only months away from rolling out an infrastructure that allows it to significantly reduce the carbon emissions it produces.
It would be a landmark move that could set apart the cryptocurrency and blockchain from its more popular rival, Bitcoin.
Bitcoin’s environmental impact has recently become a hotly debated issue. Tesla CEO Elon Musk jumped on Bitcoin early in 2021 but has recently said that the company would look into a greener alternative and would no longer accept payments for its cars in Bitcoin.
Dogecoin, which supposedly consumes less energy, has been accepted by SpaceX, another of Musk’s companies.
In the meantime, the Ethereum blockchain is pushing ahead with energy-efficient solutions. The blockchain is capable of hosting other cryptocurrencies, which could soon make it a home for businesses that want to come across as eco-friendly with green consumers.
Ethereum will now try to move away from the proof-of-work (PoW) concept which is associated with greedy amounts of energy being used to power it up. PoW is the protocol that Bitcoin uses, and which is now been questioned.
Instead, Ethereum is shifting to a proof-of-stake (PoS) model that asks participants to stake a part of their Ethereum holdings to validate a transaction on the network, creating a true peer-to-peer (P2P) network.
Even though Ethereum has faced numerous problems with the implementation of a PoS model in the past year, and not least a recent critical vulnerability that was revealed by the foundation, the ecosystem is ready to move forward. The news has been confirmed by Ethereum Foundation research and development team member Carl Beekhuizen.
The shift would tangibly reduce the power consumption of the network from around 5.13 gigawatts of power at present rates to 2.62 megawatts, Beekhuizen has estimated. “This is not on the scale of countries, provinces, or even cities, but that of a small town (around 2,100 American homes)”, he wrote.
Ethereum is not yet quite at the same scale as Bitcoin, but already, the network is showing positive signs of improvement. Ethereum co-creator Vitalik Buterin recently became the world’s youngest billionaire.
While working for the greater good and a greener future, Ethereum is still plagued by high gas costs – an issue that stakeholders are eagerly waiting to be resolved. In the meantime, you can play at many Ethereum casinos such as Bitcasino, 1xBit and FortuneJack.