It is now a well-known fact that cryptocurrencies ni consume a lot of energy. But, Ethereum 2.0 is ready to reduce its energy consumption by 99.95% within months as it makes the shift to a new infrastructure model.
Currently, Ethereum has a carbon footprint comparable to that of Sri Lanka. But, as per a blog post, the transition to Ethereum 2.0 will slash its energy requirements dramatically. And while there’s no set date as yet for the transition to take place, the post mentions that the incident will happen ‘in the upcoming months’.
Last week Tesla announced that it would stop accepting Bitcoin as payment because of the environmental effects of crypto mining operations. This shed the spotlight on the high energy demands required by some of the top cryptocurrency performers.
Bitcoin’s proof-of-work system model demands high-powered computers – including specialized mining rings. This is required to solve energy-intensive math equations for an opportunity to earn BTC rewards. Digiconomist believes that energy consumption of the entire Bitcoin mining network has soared of late, and has a carbon footprint comparable to that of Portugal.
Ethereum also uses a proof-of-work system approach for mining. Though not as power-consuming as Bitcoin, its total evaluated consumption has three-folded since the beginning of 2021.
Fortunately, Ethereum 2.0 will include a new proof-of-stake blockchain model that depends on validators holding tokens within the network. That will estimate the need for energy-consuming PCs mining ETH. Further, the new estimates suggest that indeed the Ethereum 2.0 will be really transformative.
A post by The Ethereum Foundation, a non-profit organization that favors development and research behind blockchain, suggests that the Ethereum 2.0 will no longer need ‘a country’s worth of power’, scaling down the energy needs of the network dramatically.