Ethereum blockchain to undergo “monumental” revision

• An army of computer programmers will undertake software improvements.
• It will be one of the most significant ones.
• The cryptocurrency industry will witness the changes.

This week, an army of computer programmers from all around the world will undertake one of the most significant software improvements the cryptocurrency industry has ever seen to lower its unsustainable energy use.

A more energy-efficient version of the Ethereum blockchain, a digital ledger that supports a multibillion-dollar ecosystem of cryptocurrencies, digital tokens (NFTs), games, and apps, has been in development for years.

The second-most significant blockchain after Bitcoin, Ethereum, consumes more energy annually than New Zealand.

According to experts, the switchover, which is anticipated to occur between Tuesday and Thursday, will drastically reduce energy use.

Enthusiasts anticipate that a greener Ethereum would encourage broader adoption, especially as a tool for institutions to automate transactions and other procedures.

But up until now, the technology has primarily been employed to develop speculative financial products.

In a recent statement, The ING Bank stated that the switchover might boost Ethereum in gaining acceptance among regulators and policymakers. The bank stated that this “may in turn increase the willingness of traditional financial institutions to build ethereum-based services.”

In the current “proof of work” method, so-called crypto miners utilize power-hungry computer rigs to solve riddles that grant them fresh currencies.

Those miners and their computer stacks will be eliminated by the new system over night.

Instead, to participate in the new “proof of stake” system where they receive compensation for their efforts, “validators” will need to stake 32 Ether, the cryptocurrency used by Ethereum, which is worth $55,000.

But the merging procedure will be dangerous.

Consensys, a blockchain startup, described it as a “monumental technological milestone” and the biggest Ethereum update since the platform’s introduction in 2015. Given the sector’s history of unrest, critics have questioned if such an upgrading will go without incident.

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