Ethereum (eth) to turn off its mining rigs and which will dramatically reduce cryptocurrency’s carbon emissions. Is this good news?
Miners around the world dont seem to think so as they arent overly impressed that one of the largest cryptocurrencies are putting a stop to mining.
This September (2022), Ethereum blockchain is planning to switch off its mining rigs. Its worried the switchover could cause absolute chaos in some sectors, with die hard Eth fans vs the new era of eth holders, that is of course if any of this happens as the crypto world never seems to have to stick to anything they say and are not yet governed.
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These mining systems work on a proof-of-work model which is at the root of everything regarding the environmental impact of mining crypto. And ethereum is planning to stop.
Investopedia:
Proof of work (PoW) describes a system that requires a not-insignificant but feasible amount of effort in order to deter frivolous or malicious uses of computing power, such as sending spam emails or launching denial of service attacks. The concept was subsequently adapted to securing digital money by Hal Finney in 2004 through the idea of “reusable proof of work” using the SHA-256 hashing algorithm.
Following its introduction in 2009, Bitcoin became the first widely adopted application of Finney’s PoW idea (Finney was also the recipient of the first bitcoin transaction).3 Proof of work forms the basis of many other cryptocurrencies as well, allowing for secure, decentralized consensus.
Its replacement: PoS (not what you think)
What Is Proof-of-Stake (PoS)?
Proof-of-stake is a cryptocurrency consensus mechanism for processing transactions and creating new blocks in a blockchain. A consensus mechanism is a method for validating entries into a distributed database and keeping the database secure. In the case of cryptocurrency, the database is called a blockchain—so the consensus mechanism secures the blockchain.
The replacement is called proof of stake. Conceptually, it is more complex, but with the same broad brushstrokes we can describe it like this: rather than burning electricity to generate lottery tickets, you instead use your ethereum to buy premium bonds, and the system picks a winner in proportion to the amount of bonds they’ve bought, who then gets to do all the validation stuff as normal. You can cash out of your premium bonds, but the process is slow, so you are motivated not to abuse your validation privileges.
Now, (if you’re still with me on this) A version of ethereum has been running like this for a while. It’s had different names over the years, from testnet to Eth2, but on 15 September it’s going to just be ethereum.
This switchover (which sounds like a terrible adventure/horror moive) has been dubbed “the merge” – because the old and the new networks will be merged together (rather than split like many others) – This will most likely be one of the biggest things to happen to crypto so far. So its literally anyone’s guess.
You may take this with a pinch of salt, and rightly so, the crypo space is never a safe one as we all know given whats been going on in the last year, and shitcoins becoming more and more like cults than anything else.
Eth have said:
The switch to proof of stake has been planned for several years, with a host of problems, both technical and organisational, delaying implementation. But now, according to Carl Beekhuizen, a research and development staffer at the Ethereum Foundation … the change will be complete “in the upcoming months”.
We are still waiting.
What’s at stake according to Alex Hern at The Guardian
My guess, and that is all it can be, a guess, its going to be far from a smooth crossover, just wait for all the fork coins to appear as they did with Bitcoin, not to mention all the crooks tryign to fool people jumping on the bandwagon, with ‘baby’ stuff
Everyone who has a balance of ETH will suddenly find that they have two balances, one on each blockchain. And everyone who has a smart contract running on ETH will suddenly find they have two of them, as well: there will be the proof-of-work version of the Bored Ape NFTs, and the proof-of-stake version, and so on.
Some of those duplicates may happily coexist. Others might try to talk down the forked version, but never quite kill it – how much would someone who wants to own a killer NFT pay for an “unofficial” version on the forked chain? If it’s not zero, then the trade could continue for some time, even if the developers of the Apes disown the forks.