Home
News
- Energy consumption to reduce by 99.95% for Ethereum mining post-upgrade to PoS system
- Consensus algorithm to help keep ETH prices in check with average cost-cutting
- Sharding to increase scalability and capacity of data storage across the network
After years of planning and having obstacles, Vitalik Buterin, the founder of Ethereum, has assured the masses that the blockchain network is on course to switch to PoS from its current Proof of Work (PoW) system. The latter was in use over the past decade and led to fuel emissions equal to the size of the Netherlands. The world’s largest cryptocurrency, Bitcoin, has a carbon footprint equal to Portugal. The upgrade to Proof of Stake will lead to less fuel emission and consumption of energy.
PoS reduces average cost leading to a rise in the price of Ethereum.
Proof of Stake allows validators to stake a part of their currency and mine more blocks. For every faulty transaction validated, the currency put at stake will have to be forgone. Hence, validators will be extra careful before mining and thus lead to efficient mining. Secondly, PoW lacks the final touches as validators can rewrite transactions and change the formation of the block at will. PoS ensures that faulty miners are penalized and that their collateral is reprimanded.
Although experts may argue that there might not be an objective way to identify an evil fork, PoS will reduce energy wastage and consumption. The latest upgrade promotes itself as a green blockchain as it reduces carbon footprints.
The consensus algorithm works in favor of miners
The Beacon Chain manages the Proof of Stake network or consensus algorithm. Rewards are awarded for every correct transaction recorded on a block. It helps run the chain securely and incentivizes miners for efficient work processes.
Failure to validate, going unavailable, or lodging illicit transactions may call for hefty fines and loss of Ethereum. Validators must run ‘Eth1’ on the mainnet or use a back-end API for the same. Lastly, miners stand to gain as efficiently mining more Ethereum will lead to more supply and meet demand worldwide.
Unlocks benefits of Sharding in a PoS system
Sharding improves Ethereum’s capacity and scalability along with the merger of the mainnet with the Beacon Chain. It helps spread the loss of the network across 64 chains and keeps hardware requirements to a minimum. In this process, everyone can run a node and increase network participation.
The Shard chains will be available sometime next year post the merger. It will help in the storage and accessibility of data and reduce network congestion.
- Energy consumption to reduce by 99.95% for Ethereum mining post upgrade to PoS system
- Consensus algorithm to help keep ETH prices in check with average cost cutting
- Sharding to increase scalability and capacity of data storage across the network
After years of planning and having obstacles, Vitalik Buterin, the founder of Ethereum has assured the masses that the blockchain network is on course to switch to PoS from its current Proof of Work (PoW) system. The latter was in use over the past decade and led to fuel emissions equal to the size of the Netherlands. The world’s largest cryptocurrency, Bitcoin, has a carbon footprint equal to Portugal. The upgrade to Proof of Stake will lead to less fuel emission and consumption of energy.
PoS reduces average cost leading to rise in price of Ethereum
Proof of Stake allows validators to stake a part of their currency and mine more blocks. For every faulty transaction validated, the currency put at stake will have to be forgone. Hence, validators will be extra careful before mining and thus lead to efficient mining. Secondly, PoW lacks the final touches as validators can rewrite transactions and change the formation of the block at will. PoS ensures that faulty miners are penalized and that their collateral be reprimanded.
Although experts may argue that there might not be an objective way to identify an evil fork, PoS will reduce energy wastage and consumption. The latest upgrade promoters itself as a green blockchain as it reduces carbon footprints.
Consensus algorithm works in favour of miners
The Beacon Chain manages the Proof of Stake network or consensus algorithm. Rewards are awarded for every correct transaction recorded on a block. It helps run the chain securely and incentivizes miners for efficient work processes.
Failure to validate, going unavailable or lodging illicit transactions may call for hefty fines and loss of Ethereum. Validators must run ‘Eth1’ on the mainnet or use a back-end API for the same. Lastly, miners stand to gain as efficiently mining more Ethereum will lead to more supply and meeting demand across the world.
Unlocks benefits of Sharding in a PoS system
Sharding improves Ethereum’s capacity and scalability alongwith the merger of the mainnet with the Beacon Chain. It helps spread the lost of the network across 64 chains and keeps hardware requirements to a minimum. In this process, everyone can run a node and increase network participation.
The Shard chains will be available sometime next year post the merger. It will help in storage and accessibility of data and reduce network congestion.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
