The Ethereum Foundation wants to reduce its energy consumption by 99% … This is their action plan (POA)
Going forward, a spokesman for the Ethereum Foundation He made it clear that they want the ETH to move to a game-based test facility, which will cut the overall energy consumption of the currency by a whopping 99% (which is an impressive undertaking to say the least).
As many of us already know, in recent months many controversies have surrounded Ethereum, in particular regarding the use of currency energy and its overall negative impact on the environment. In this regard, many studies have been published that claim that the premier altcoin it uses more electricity than that used by the global gold mining industry. At the same time, there have also been other research papers that have stated otherwise (thus questioning the sanctity of the data presented in the reports above).
An in-depth look at Ethereum
Ether it was introduced for the first time in the cryptic market just under a decade ago. After its introduction into the market, the crypto-asset owned the only one in the world blockchain ecosystem make use of smart contracts. Not only that, at the moment, currency was one of the few active projects to also have a thriving developer community.
In terms of its digital structure, Ether makes use of the PoW (Proof-of-Work) consensus mechanism to guarantee its blockchain. However, as we all know now, PoW make use of cryptographically secure transactions that not only consume millions of dollars of electricity, but also entail high costs related to the mining sector.
Some of the others key aspects of PoW to include:
- The Work test algorithm generates rewards in the form of mined cryptocurrencies.
- The protocol works exclusively on the "logic of massive incentive power in the existence of enormous rewards".
What's different about trying the game?
As mentioned earlier, when examining the Proof of Work protocol, miners essentially work towards processing the "same set of transactions". However, in the case of PoS, the protocol "randomly select validators" to process native transactions.
In addition to this, the Proof-Of-Stake module considers validators and miners as equal within their own ecosystem. Not only that, thanks to its intrinsic design, the PoS system It has been designed to ensure that validators remain honest at all times (which is achieved by ensuring that validators put a certain amount of ETH into play as a guarantee).
Furthermore, it is worth mentioning that the greater the role of the validator in the question, the greater the chances of being chosen to validate transactions within the ETH ecosystem. Likewise, if it turns out that a validator indulges in unethical activities, it has a lot to lose monetarily. As a result of this new insurance policy, validators are forced to remain honest at all times.
Last but not least, one of the others central aspects of PoS is that validators should not use all of PoW's energy to enhance network security.
While Ethereum It has certainly made tremendous progress in recent years, now there are many other protocols that have been built on its native blockchain. For example, we now have projects like MakerDAO that serves as a decentralized stablecoin and many other interesting offers to choose from.
Moreover, in recent times, there have been other projects such as EOS, Cardano, which have developed POS-compliant blockchains, thus providing Ethereum with tough market competition.