its sell on the news
the staff of the Ridgewood blog
Ridgewood NJ, Vitalik Buterin Says Ethereum “Merge” cut global energy usage by 0.2%, one of biggest decarbonization events ever . The Ethereum Merge lowered the world’s energy consumption by 0.2%. It may be one of the single biggest decarbonization efforts in history. The Merge cut Ethereum’s energy use by 99.988% and carbon-dioxide emissions by 99.992%. Miners that were mining ETH prior to the “Merge” have switched to other Proof-of-Work-based digital assets.
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This Ethereum upgrade or “Merge,” as it’s being referred to, changed how new crypto transactions take place on the blockchain.
Previously, the Ethereum blockchain, like the Bitcoin blockchain, ran on a proof-of-work model, which involves nodes — computers that are part of a large network — competing with one another to solve complicated math problems. The successful ones are then able to mine the next block of a transaction and create new coins.
The upgrade transitioned Ethereum to the proof-of-stake model, which is a more energy-efficient and environmentally-friendly system. It entails nodes being selected via an algorithm that has a preference for nodes that hold more of a network’s currency.
In other words, their “stake” in the network is rewarded over the computer power that’s rewarded in the proof-of-work system
Ether led digital assets lower after a groundbreaking software upgrade of the token’s underlying network turned into what some market observers labeled a “sell-the-news” event.
The second-largest token dropped as much as 3.8% on Friday and was trading around $1,475 as of 12:40 p.m. in Singapore following a more than 6% slide Thursday. Ethereum is paring a rally since mid-June sparked in part by optimism about the Ethereum update — the “Merge” — to slash the network’s energy use.
Ethereum should now consume 99.9% less energy. The upgrade will make the blockchain more secure and scalable. Ethereum developers will now focus on implementing sharding, a method that will lower transaction times and fees on the network.
Over 40% of Ethereum’s blocks were added by Coinbase and Lido in the hours following the Merge. Seven entities own more than two-thirds of the stake on Ethereum’s Proof-of-Stake network. Validators will have trouble writing transactions to Ethereum’s ledger if a single entity ends up controlling more than 66% of staked ether. The high capital requirement for staking makes it difficult for people to become validators on their own. Centralization opens up the Ethereum blockchain to risks such as transaction censorship.
