Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
proof-of-stake
Tech and Marketing

Ethereum is in transition to a proof-of-stake consensus

31.10.2022
2 min read

Pros and cons of moving Ethereum to the proof-of-stake consensus

The developers of Ethereum announced the final stage of the project to switch to a new proof-of-stake consensus. This decision of the developers is related to the desire to reduce carbon emissions when mining cryptocurrency. Despite such a relevant goal for humanity, not everyone is happy with the transition of Ethereum.
The fact is that proof-of-stake fundamentally changes the mining mechanisms of this cryptocurrency and requires different equipment than standard mining.
According to analysts, the new Ethereum consensus will reduce power consumption by 1000 times. Previously, a proof-of-work approach was used for mining, where one hash was equal to one vote. The proof-of-stake uses a different principle – “one coin equals one vote”. That is, now anyone who wants to interact with Ethereum must first publish Ethereum as collateral. This option is called staking.
Ethereum users are skeptical about the transition because they fear it will fail. Ethereum blockchain is the basis for many projects, and if the process goes wrong, the crypto market will face serious consequences. Experts fear that despite all the advantages of moving to proof-of-stake, like any new system, it may have drawbacks that will affect asset transactions. And this, in turn, increases the risks of hacker attacks and theft. Increasing doubts about the feasibility of using the new consensus is the fact that the developers themselves have already postponed the transition several times. They justified the postponement with the desire to improve blockchain security.Ethereum proof-of-stake It should be noted that cryptocurrency mining has been repeatedly criticized because of its negative impact on the environment. A special commission at the White House conducted a large-scale study of the industry in terms of its role in climate change. According to its results, mining poses a threat to the implementation of climate goals adopted by the U.S. government. The consumption of electricity for cryptocurrency transactions in the country is comparable in volume to the use of all home computers.
Bitcoin is considered one of the most energy-consuming, with Ethereum in second place. However, if Ethereum moves to a new consensus, it will make it more economical and sparing to the environment.
In the U.S., mining accounts for 0.2-0.3% of global carbon dioxide emissions. Domestically, cryptocurrency accounts for 0.4 to 0.8% of emissions. The main problem remains the use of fossils as sources of energy generation for cryptocurrency operations. Mining has already released 110-170 metric tons of carbon dioxide into the atmosphere. According to the commission, the only option to reduce the negative impact of the crypto industry on the environment is a clear regulation of the processes by the government.

Tags: Tech and Marketing
0
Previous Post The British government wants to create a crypto hub in London Next Post Juniper Research: contactless payment market to double in 5 years

You Might Also Like

local promotion and its benefits
Tech and Marketing
Local promotion: how to attract local customers
04.05.2023
content marketing
Tech and Marketing
Content marketing as a way of promoting startups with minimal investment
21.12.2023
Velas Network AG
Tech and Marketing
Velas Network AG conducted a transaction in space
29.09.2022
embedded finance-2
Tech and Marketing
Embedded finance as an ideal tool for the B2B sector
17.11.2022
Internet advertising
Tech and Marketing
Internet advertising as a way to attract consumers
08.01.2025
biometric payments
Tech and Marketing
Biometric payments as a way to protect data from hacking and theft
16.07.2024

Popular Posts

  • Li Ka Shing: How can success be achieved without money and education?
  • Skolkovo analysts: the Russian energy market is suffering losses
  • Ingeborg Mootz: a woman who became a stock player at the age of 75
  • Analysts: Egypt’s economy to continue falling in 2023

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Press Secretary
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Press Secretary
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Press Secretary
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Press Secretary
16.05.2020

Popular Posts

  • Li Ka Shing: How can success be achieved without money and education?
  • Skolkovo analysts: the Russian energy market is suffering losses
  • Ingeborg Mootz: a woman who became a stock player at the age of 75
  • Analysts: Egypt’s economy to continue falling in 2023
  • Businessman Chuck Feeney: the man who gave the world Duty Free
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram

© 2024 CHASLAU KONIUKH. ALL RIGHTS RESERVED. Expert in marketing and project management, international investments, financial analyst.

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics