Bitcoin mining has been criticized as energy intensive. Countries such as Iran and South Korea regulate mining to reduce the load on the grid. South Korea has gone further to confiscate mining equipment by intercepting shipments.
The blame game has cast a negative spotlight on Cryptos, but this is about to change. The Ethereum hard fork is set to overhaul the Ethereum Mainnet. The upgrade is ideal since it adopts a new model that simplifies the authentication of nodes without compromising on efficiency or security of transactions.
How Much Power Does Crypto Mining Consume?
Research by the Digiconomist shows that Bitcoin mining consumes 94.6 TWh of electricity in a year. Ethereum follows closely at 79.79 TWh per year. The research varies depending on the methodology of collecting data. The fact remains that the PoW method of mining is energy intensive and unsustainable.
Efforts from the Whitehouse to incentivize miners to limit their mining activities have hit a brick wall. Some states have been urging Crypto miners to mine during off-peak hours, such as late at night, by applying a variable power tariff.
The New Technology is Ideal for Curbing Energy Consumption
Bitcoin and Ethereum pioneered the Proof-of-Work consensus model, revolutionizing the Crypto space. The technology eliminates the need for a trusted third party to verify transactions.
The world’s second largest Crypto by market capitalization has been using the Proof-of-Work protocol to verify nodes. This is the process of achieving consensus in a peer-to-peer transaction by having the peer solve mathematical problems to authenticate their on-platform activity. The activity can be mining or the exchange of Crypto.
The Proof-of-Stake Protocol is Sustainable
Besides being energy efficient and secure, the Proof-of-stake (PoS) consensus mechanism is scalable. When implemented on the Mainnet, Ethereum can support increased transactions without being overwhelmed.
The adoption of ETH and Ethereum codes has been increasing exponentially, and much effort is needed to transition the blockchain into the future.
Years of work and massive resources have gone into the program as a PoS is more advanced and untested. Although the technology has existed for years, it is open-source, and developers alter some features to customize the upgrade for their needs. After the research and development phase, the next challenge is to fork the Mainnet successfully.
ETH Is Bullish
The ETH is bullish ahead of the upgrade. In the last seven days, the coin has gained 4.6% and is trading above the $1,600 mark. The Crypto is set to close the week on a high note after gaining an impressive 7.7% in the last 24 hours. ETH has consistently outperformed BTC in growth and now dominates 20% of the crypto market valuation.