Ethereum software upgrade will reduce energy demand

Ethereum blockchain plans to connect to another blockchain, which will significantly change the way transactions are handled and new tokens are created. It will also receive a major software upgrade aimed at reducing the energy expenditure for creating new coins and conducting transactions.

The “Merge,” as the transition is called, is expected to be completed between September 10 and 20. Crypto exchange platforms Coinbase Global and Binance have stated that Ether transactions will be suspended for this period and users will not be required to use their money or wallets for the upgrade.

Supporters of this “Merge” believe that it will improve the price and functionality of Ethereum compared to arch-rival Bitcoin. They also claim that it will increase the use of Ethereum, improve its price, which has already increased by more than 50% since the end of June, and make it easier to develop programs on the network, potentially increasing adoption.

Crypto-miners verify transactions using the proof-of-work model now used by Ethereum. Additionally, owners can block a certain number of their coins to check new records on the blockchain and earn new coins. The new “proof-of-stake model” under “Merge” will be an enhancement.

However, cryptocurrency experts believe that a single company, which has collected the vast majority of Ether to verify new transactions, could modify the blockchain and steal tokens, implying that technical problems could hamper the Merge, and that fraudsters could exploit them to steal tokens.

The sources for this piece include an article in Reuters.

IT World Canada Staff
IT World Canada Staff
The online resource for Canadian Information Technology professionals.

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