After years of anticipation, the ethereum finally implemented a major network upgrade that changes how transactions are verified and secures its network. The proof-of-stake system has reduced ethereum's energy consumption.
One of the main targets for critique is energy usage. It is not likely that bitcoin will do the same thing.
The network is using a system called proof-of-work, in which highly specialized computers try to guess a winning number that serves to verify transactions and create new coins. This is something called mining.
Guessing a winning number can take over a hundred tries. It's nearly impossible for bad actors to accumulate enough computing power to take control of the network thanks to all of this work. The research shows that in 2020 the amount of electricity used by mining was more than all of Austria or Portugal.
The system used by ethereum is now used by this one. The network now uses validators instead of miners. Instead of playing a game of guessing, validators are assigned to verify transactions and earn ether for doing so.
The validators have to make a security deposit in order to act honestly. validators will lose their stake if they try to attack the network. Proponents of ether say that the penalty will make the network more secure, while skeptics think that proof-of-work is more secure.
The network has become a problem due to the energy use of the network. In response, some major bitcoin miners are starting to seek out renewable energy to power their data centers and trying to change the narrative by saying that their energy use is an asset.
The video shows how Cryptocurrencies are trying to go green.
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