- Due to the way most cryptocurrencies are mined, the process can be incredibly energy-intensive.
- The Merge will result in Ethereum switching the underlying technology it uses for validating crypto transactions.
Carbon emission around the globe due to crypto mining and transactions is a much-discussed issue. However, many crypto firms are trying to reduce their carbon footprint, and Ethereum is one of them.
The second-largest cryptocurrency by market capitalization recently switched from the energy-intensive Proof-of-Work (PoW) consensus algorithm to the more environmentally friendly Proof-of-Stake (PoS). According to an analysis by CryptoMonday.de, Ethereum's switch to POS will reduce its carbon footprint by 99.95%.
Before the Merge, Ethereum used roughly 83.89 TWh of electricity annually, comparable to the usage of a country of similar size to Finland.
Speaking on the data, CryptoMonday.de CEO Jonathan Merry said,
For several reasons, the move represents a fundamental shift for Ethereum and cryptocurrencies. It increases the number of people who may participate in the Ethereum blockchain's validation. Moreover, it lessens its carbon footprint when global temperatures rise. Thus, enhancing the public's perception of cryptocurrencies. Crypto adoption might go up.CryptoMonday CEO, Jonathan Merry
The move will contribute to the progressive acceptance of cryptocurrencies over time. Thus, the Merge of Ethereum could be a crucial milestone in the adoption of cryptocurrencies by the general public.
Environmentally Friendly Blockchains
Carbon zero or Carbon Neutral is the new normal, and Ethereum Foundation is one step closer to achieving that. The recent switch from POW to POS reduces the carbon footprint and is more secure and scalable. The move has also attracted some recognition from various communities.
A slew of new cryptocurrencies has taken on the title of being environmentally responsible and utilizing proof of stake.
One of the most well-known names is Cardano, whose launch of smart contracts has caused some crypto watchers to be hopeful for its capability to address real-world problems. Tron's annual energy consumption is approximately 99.9% less than Bitcoin and Ethereum, using 162,868 kWh for over 2.31 billion transactions yearly. Ripple (XRP) is another eco-friendly token that experts are highly optimistic about.
Ethereum's POS switch is a big step in the right direction for the cryptocurrency industry. As more and more firms begin to adopt eco-friendly practices, we can expect to see a reduction in the carbon footprint of the entire sector.
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