Saturday, July 20, 2019

Vitalik Buterin Aims To Decrease Mining’s Energy Consumption Up To 99%

Vitalik Buterin, inventor of Ethereum, plans to decrease 99 percent of energy consumption used in mining ethereum– but is it possible?

Problem in Crypto Mining

Over the years, since crypto mining was introduced, the problem of its massive electricity consumption made businesses invest millions of money.

Although this sounds riskful for some people, the number of companies and businessmen, trying to start their mining empires still continues to increase over the years.

“That’s just a huge waste of resources, even if you don’t believe that pollution and carbon dioxide are an issue. There are real consumers—real people—whose need for electricity is being displaced by this stuff [mining],” says Buterin.

Ethereum Plans A Major Change

Ethereum, now as the world’s largest cryptocurrency, also uses huge amount of electricity in mining– equivalent to energy consumption in Iceland. Due to this, Buterin shared the same sentiment with the miners regarding mining that later on, forces him to take an action.

Now, the founder of Ethereum, promised to lessen this problem as the company switches its computational competition from blockchain-based proof-of-work (PoW) to blockchain based proof-of-stake (PoS) algorithm.

“… Latest ETH update should complete transactions using just 1% of the energy consumed today by replacing PoW with PoS.”

Proof-of-work vs Proof-of-stake

As explained in Spectrum, PoW is normally used in most cryptocurrency mining. PoW or proof-of-work is difficulty designed for ‘all participants to race to cryptographically secure transactions and add them to the blockchain’s globally distributed ledger.’

In layman’s term, PoW requires a lot of energy consumption since its computational power shouts competition over other cryptographs. So in order to gain profit, miners must provide huge electricity.

Related Article:  Vitalik, Roubini In A Head to Head Discussion on the Anonymity Crypto Offers

On the other hand, PoS or proof-of-stake were basically much cheaper way of mining cryptos. As also explained, ‘Instead of millions of processors simultaneously processing the same transactions, PoS randomly picks one to do the job.’

Another factor on PoS’ perks in mining is that PoS were proven to be more efficient and safer than PoW. As a matter of fact, according to the report, Ethereum already worked for this project since 2015– after a lot of tests done using PoS.

Is it Possible?

This year, the company is now accurate to change its computational competition, but some experts seemed to gain disbelief in Buterin’s claims.

“I’m not exactly sure about the wisdom of a staged transition. You either have faith and confidence in your consensus algorithm or you don’t,” said Charles Hoskinson, CEO for blockchain tech firm IOHK.

Ethereum’s future plan of switching from PoW to PoS can be a tragic change or a successful path for the company. Still, crypto miners are celebrating for this major change to come.

 

 

 

 

More Articles

BlockFi To Launch A Deposit Bank For Cryptocurrencies

Banks and cryptocurrencies usually do not align with each other due to their differences in the system. With this, the act of joining them...

Research Shows Tether is Not Responsible for Bitcoin’s Price...

Following allegations that the Tether stablecoin was responsible for the variations in the value of the Bitcoin last year, a professor in the University...

Zebpay Moves to Malta Following Stringent Crypto Policies in...

Another fascinating angle to look at the stringent crypto policies in India is that it has now opened an entry for crypto firms to start considering relocation crypto friendly countries such as the blockchain island of Malta, which has gradually become a “crypto Silicon Valley.”

620 Million Stolen Accounts for Sale at $20,000 Bitcoin’s...

Almost $20,000 worth of bitcoin is being requested by a hacker in exchange for 620 million user accounts that were stolen from 16 websites....

FSS Investigates Controversial Cryptocurrency Company Tether

The increasingly growing ‘stablecoin,’ Tether, is no stranger to controversies and it has recently surged up in its growing importance once again, after being...

Pfizer To Explore Blockchain Uses In The Pharmaceutical Field

Undoubtedly, blockchain and decentralized ledger are some of the most useful technologies that arose in the latest century, and they are being applied in...

E.U. Set To Beef Up Cryptocurrency Regulations In the...

Cryptocurrency Scammers on The Rage, As Justin Sun, is...

Cryptocurrency scammers on the rage as Justin Sun is being impersonated on Twitter, as scammers are giving away fake tokens to their victims. Activities of...

Australian Banks Fraudulently Imposed Fees on Deceased Customers

Some reputable banks in Australia have allegedly been charging fees for nonexistent services even from deceased customers. These financial institutions have been accused of...

Ripple’s xRapid Honored at the World Changing Ideas Awards

Despite the overwhelming behavior of the crypto market in recent times, Ripple Labs has not relented in proving to be an ambitious...

Payment Proccesor BitPay Authorized To Operate In New York

BitPay, one of the first cryptocurrency-only payment processors, has received authorization to operate within the limits of the state of New York by the New...

FBI Wants Bitconnect Investors’ to Help Investigate $2.5 Billion...

The Federal Bureau of Investigation (FBI) is seeking those who were affected by the close down of Bitconnect to help them in its investigation....

Latest Articles

Couple Pays For Breakfast Using Bitcoin, Community Finds This...

A Reddit user by the username u/portageco recently made a post in bitcoin's official subreddit. In his post, u/portageco boasts about how he paid...

Australian Woman Leads Adoption, Tours 10 Countries Spending Cryptocurrencies

Who says you can't go around the world spending cryptocurrencies? As many believe, cryptocurrencies are only good for speculations. But with a little research,...

Did A Physical Bitcoin Just Sell For $99k On...

As at the time of reporting, the listing on eBay had closed. This could be because the seller got a buyer or he decided...

Litecoin Now Approved In 30,000+ Stores

As cryptocurrencies gain ground, more and more technology-based firms find ways to incorporate the nascent technology into everyday life. Moon, prior to this time,...

Facebook Libra Coin did what you all wanted, and...

I think we need to take a step back and look at what’s really happening here… The primary issue with the entire Cryptocurrency industry is...

How To Shop on Amazon with Bitcoin – Step-By-Step...

Wondered how to shop on Amazon with bitcoin? Then here's how you can purchase goods on one of the largest e-commerce websites that ships...

How To Buy Bitcoin On Coinbase – Step-By-Step Guide

Buy Bitcoin on Coinbase instantly in the U.S., UK, Canada, or anywhere you are globally. Coinbase cryptocurrency exchange has enabled its customers buy the...

Grayscale Bitcoin Trust Boosts By 300%, Affects Oil &...

The institutional investment product, Grayscale Bitcoin Trust (GBTC), experienced a growth of more than 300% due to its outstanding performance since February, Forbes reports....

How To Create A Coinbase Account – Step-By-Step Guide

Create a Coinbase account with ease. Use this illustrative guide to create a Coinbase account for buying, selling, and storing cryptocurrencies. And you know...

$9.2 Trillion Transferred Using Bitcoins In 2.5 Years

Against present belief that bitcoin is only used for speculation, James McDowall, a crypto investor and advisor shared a metric about Bitcoin that's been...

Malware Posing as Movie File Manipulates Results and Steals...

A new form of malware posing as movie file was discovered last year and was designed to steal cryptocurrency and inject manipulated results into...

No-fee Mobile Trading App Quantfury Increases Crypto Support with...

The no-fees mobile trading app Quantfury has been expanding its crypto services lately, most notably with the addition of the DASH cryptocurrency. The coin...