The goal of Ethereum does not stop at being ranked as one of the largest cryptocurrencies on the planet; it goes beyond that. In addition to the recognition, Ethereum aims to be at the lead when it comes to energy efficiency and its leadership plans to make this a possibility by reducing the energy consumption of the blockchain by 99%.
Ethereum 2.0 to Be Built from the Scratch
The co-founder and inventor of Ethereum, Vitalik Buterin, regained the position of Ethereum as the second biggest cryptocurrency at the beginning of the year 2019, with more than $15.5 billion market capitalization.
Buterin, however, admitted to the fact that the electricity consumption required for Ethereum mining is now higher than of Iceland. Therefore, to maintain its competitive advantage, Ethereum plans to effect a decrease in the amount of energy consumption by changing its blockchain algorithm from proof-of-work to proof-of-stake.
Regarding this issue, Vitalik said that the “latest ETH update should complete transactions using just 1% of the energy consumed today by replacing PoW with PoS.”
Testnet Could Exceed 2019
Spectrum IEEE’s contributing editor, Peter Fairly, writes that the vision of Buterin has always included energy efficiency from the very beginning, agreeing that the energy consumption of PoW is actually on the high side.
Buterin hopes that in the future, blockchains will be based on Sharding and PoS. Sharding is a technique which is used to break down large databases into more manageable components that are both smaller and faster, referred to as data shards.
Buterin made a tweet on Dec 10, 2018, which reads:
“Blockchains of the future with proof of stake and sharding will be thousands of times more efficient, and so the efficiency sacrifices of putting things on a chain will become more and more acceptable.”
Paul Hauner, an Ethereum contributor and co-founder of Sigma Prime, a blockchain-development and cybersecurity firm based in Australia, is in charge of the development of ‘Lighthouse’ Ethereum 2.0 software client which makes use of the Rust code. His expectation for 2019 is to see this app, as well as others, running PoS on testnets early in the year.
But taking into consideration the events of the past which featured a lot of delays, together with the complex nature of the task, his expectations regarding Ethereum 2.0 could take more time to be achieved or may not even materialize in 2019.
“In October 2017, when mining time had already nearly doubled to 30 seconds, the Ethereum team reset the clock, delaying PoW’s doomsday by about 12 months,” Fairley wrote. “And they will likely hit snooze again shortly.”
Speaking on the issue, Weiss Ratings said they wouldn’t put all their hopes in its actualization in 2019.