The second largest blockchain in the world after Bitcoin is Ethereum and news of one of the most anticipated updates are presented by crypto users. This event has been calledfusion” by the experts who are in charge of its development since will involve joining the existing chain with a new blockchain that will allow the news and improvements in the network that have been eagerly awaited for years. Few times before has similar work been done to update such a massive blockchain network while also being activewhich is why the Ethereum developers are taking every precaution to ensure that this process is successful.
Environmental consequences of mining
Much has been said about the implications for the cryptocurrency mining ecosystem. The debate is still open and it remains to be confirmed if Ethereum 2.0 will be able to solve all the problems about sustainability that have been raised. In particular, the debate focuses on the fact that the current consensus mechanism for the Ethereum network is none other than the proof of workor PoW in short, a method that demands a considerable computational capacity to be able to mine Ether; for which powerful graphics processors (GPU) are needed to compete with the other miners.
Ethereum 2.0 would move to the consensus mechanism called proof of stakeor PoSin which the miner has more influence not because of his computing power but because of his possession (or hold) of network coinsin this case, Ether. This change will be a setback for current miners but they will be able – in principle – to adapt easily since those who have been in the sector for years must have kept an amount of ETH in hold to anticipate the transition.
Besides, this change of consensus will allow other participants to start miningas there are many users who have ETH but may lack the computational power to join the activity currently due to the large initial investment. In theory, all ETH holders will be able to participate in the validation (which will replace the current mining) so the mechanism to obtain new ethers will be democratized, in a certain way In the net.
Besides, there are those who believe that the whales will be able to monopolize mining but if we think about it with perspective, today there are few who can mine profitably on the network due to the great demand for GPUs in recent years, so neither of the two consensus methods is 100% fair in that regard. Nevertheless PoS has an advantage: it wastes less energy. In the search for balance in the sustainability of a network, there are always several factors to take into account and reducing energy waste (heat expelled by mining equipment) is an incentive for the transition.
Towards a greener ETH ‘mining’
David Lawant, director of research at cryptocurrency fund Bitwise Asset Management, recently claimed that energy consumption can be dramatically reduced by up to around 99% with this fusion. In addition, the validation process that will replace the current mining in the network demands that the validators, that is, holders who place their coins to be able to approve transactions in the network, have to do a high quality job since, otherwise, , your ether staking would start to go down due to penalties so the network will naturally become more secure with PoS.
Besides, the electronic components market will benefit from the reduction in demand for GPUs since currently the miners monopolize an important part of the stock of these components. Prices will likely drop once this demand for graphics cards dwindles and parts return to the market – although after mining their capabilities are depleted for the rest of their lifespan. In any case, it is another of the pros of leaving PoW behind.
When will we finally see ETH 2.0
This is the million dollar question for all crypto users who use the Ethereum network on a daily basis for NFTs and the metaverse. Nevertheless, there is no set date and there have already been delays in the passage so any estimate should be taken with caution. Ethereum developers will just say that update will be released when readywithout much information on deadlines since it is difficult to determine when all the necessary work, tests and the merger itself with the new blockchain that will replace the previous one will be completed.
Definitely, Vitalik Buterin is a prominent figure to keep on the radar to know when it will come out – at last – the long-awaited Ethereum update. Although there are those who expect to see news in this regard this summer, there have already been several occasions in which this update has been anticipated. It’s like she’s always ready to come out three or six months in the future. For now, we have to wait for official announcements and follow the channels of the project, which has a very active community worldwide. Without a doubt, when there are signs that this merger materializes, the word will spread on the internet.
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