Inside Ethereum’s Plan To Reduce Energy Consumption by 99%

Ethereum intends to move to proof-of-stake in the future. Making a move to POS will supposedly cut the energy consumed by a hundredfold, or around 99%. There have been repeated claims that cryptocurrency uses too much energy and is therefore inefficient and environmentally unfriendly. Some reports find that mining cryptocurrency uses more energy than gold mining, some the opposite. Some researchers find that mining is overall bad for the
environment.

Ethereum started out with the goal of becoming a world computer, with the blockchain being the first to introduce smart contracts, and along with it a thriving developer community. The price of Ether peaked around $1400 earlier in 2018, and was recently trading well below $200.

Similar to Bitcoin, Ethereum uses Proof-Of-Work as a consensus mechanism in order to secure the blockchain. However, Ethereum founder Vitalik Buterin stressed the importance of the energy expended in order to secure the Ethereum blockchain. Even if one wouldn’t care for the ecological issues posed by PoW based blockchains, there are real people who are deprived of basic needs such as electricity.

Reference: https://www.ccn.com/inside-ethereums-plan-to-reduce-energy-consumption-by-99/

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