A long-awaited software update to the Ethereum blockchain aimed at reducing its massive power consumption is expected this week, a move that could broaden the use of the technology and support the price of the ether cryptocurrency.
The update, known as the “merger”, will mark a sea change in the way transactions on the Ethereum blockchain take place and ether cryptocurrencies are created.
The new system will consume 99.95% less energy, according to the Ethereum Foundation, which acts as the network’s spokesperson.
The exact timing of the merger is still unknown, but Google and other sites tracking the blockchain were predicting on Monday that it will take place in the early hours of Thursday.
The Ethereum Foundation said it will take place from September 10 to 20. The event has already been postponed several times.
If successful, blockchain will move from a “proof-of-work” system – in which computers validate transactions by solving complex, energy-intensive math problems – to a “proof-of-stake” protocol, in which individuals and companies act. as validators, using ether as collateral, in an attempt to earn new tokens.
Ether is the second largest cryptocurrency after bitcoin, with a market cap of around $200 billion, according to data website CoinGecko.
There are around 1 million to 1.5 million transactions per day on the Ethereum blockchain, compared to bitcoin’s 200,000 to 300,000, according to data from CoinMetrics.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
