While moving to proof-of-stake in the future, Ethereum is apparently wanting to reduce its energy consumption dramatically. In the latest cryptocurrency news focused on altcoin mining, we have ETH addressing the repeated claims that crypto uses too much energy and is therefore inefficient and environmentally unfriendly.
According to some previous reports, cryptocurrency uses more energy than gold mining (which has not been proven yet) and some researchers found that mining is overall bad for the environment.
To directly confront these claims, Ethereum has been working on becoming a world computer where the blockchain will be the first to introduce smart contracts and along with that a thriving developer community. The price of Ether has peaked around $1,400 earlier this year and was recently trading well below $200.
According to the co-founder of Ethereum, Vitalik Buterin, the Proof-of-Work is based on the concept of large quantities of electricity and mining hardware that are purely based on the premise that it generates rewards in the form of mined cryptocurrencies. In other words, this means that more mining power is directly proportional to revenue.
Even though there are many other teams racing to build POS compliant chains and reduce the mining power (EOS, Cardano, Dfinity, Cosmos) it is yet to be seen if Ethereum will maintain its dominant position as the most used smart contract platform and make these claims a reality while scaling its business.
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