A sophisticated software modification to the cryptocurrency ethereum has the potential to significantly cut its energy use — and the associated climate-related emissions.
With the shift, ethereum, the world's second most valued cryptocurrency after bitcoin, effectively abolished the energy-intensive operation of "mine" new currencies on its blockchain.
Bitcoin drops below $19,000-markMajor cryptocurrencies traded in red early today on September 19 as the global crypto market cap declined 6.55 per cent to $909.40 billion over the last day.
The software update primarily eliminates the need for miners. Whereas Ethereum previously pitted miners against each other in order to solve complex cryptographic puzzles
it now requires parties who want to help validate transactions to put some skin in the game by "staking" a certain amount of ether, the ethereum coin, to put some skin in the game.
.Parties from this pool are picked at random to validate a block of transactions; their work is subsequently reviewed by a larger group of ether holders. Successful validators are rewarded in ether in accordance to the size of their stake and the length of time they have held it.
Ethereum switched from Proof of Work (PoW) to Proof of Stake (PoS) last week, greatly enhancing the global crypto and Web3 communities.