After many years of waiting, Ethereum, the second most popular cryptocurrency, to reduce the transaction gas fees charges to 99.9% has changed the method of mining to Proof of stack from earlier Proof of work used earlier. This was expected that bitcoin the most famous cryptocurrency will also follow the same.
Energy consumption has always been a big question for miners worldwide. Looking at climate change. As people know, what is the bitcoin network? It follows the mining system called. Proof of Work. In which very special this computer is used. Which can perform different transactions. Validates And that’s what we call mining.
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Bitcoin Crypto Mining Cost
At the moment to do one bitcoin mining,100 sextillion times tries are done to identify the winner. Bitcoin mining is based on the proof of work principle. And through this, it becomes almost impossible for any security lapse in the network. But because of this mining method, mining cost consumption is skyrocketing to 75.4 terawatt hours of electricity, which is more than the power consumption of Austria or Portugal.
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How Ethereum’s merge made crypto mining more sustainable
Ethereum changed the mining principle from Proof of work to proof of stake-based principle. What is the proof of stake system? Ethereum replaced miners with validators to implement the proof of stake principle in the new system. In this system, massive computational gas charges are reduced by 99%.
Validators are asked to verify the transactions, and in return, they are rewarded with an Ethereum coin. Validators work honestly. For this, they are made a security deposit. If the validator does any kind of attack on the network or does any kind of security breach, then the network penalizes them by a heavy penalty to seize their security deposit, thereby securing the whole ecosystem
Relevance to Climate change
In recent times, global climatic change is in a focus for mining companies. They are under pressure to reduce the electricity consumption in mining. For mining, a Bitcoin, energy consumption remains a very big question. To mitigate the high energy cost, renewable energy is being used in many places. So it has to be seen the Ethereum strategy of reduction in mining energy to 99% will be successful. And how long will it take for bitcoin to implement it? It may be known in the coming time only.
Read More: How Ethereum merge made crypto mining more sustainable (cnbc.com)