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The price of Ether is up about 13% in the past week. The energy consumption of Ethereum blockchains is expected to be reduced by 99.5 percent.
One step closer to resolving a primary objection to cryptocurrency: its environmental impact, thanks to adapting the technology behind several cryptocurrencies, including Ether. A longstanding criticism of digital currencies such as Bitcoin and Ethereum is their high environmental impact due to their mining activities. Many mines are located in areas where electricity costs are low, often due to coal or other coal-based sources.
ETH 2.0 is coming
Ethereum and a host of other digital currencies and initiatives that use non-fungible tokens (NFTs) may soon be obsolete due to changes to a major blockchain. For example, the energy consumption of the Ethereum blockchains is expected to be reduced by 99.5 percent as a result of an upgrade to the so-called ETH 2.0.
Unlike Ethereum, which changed its technology to use less energy, Bitcoin does not intend to do the same. Last week, however, a test that mimicked the more elaborate merger of Ethereum’s proof-of-work and proof-of-stake chains was a step closer to a reality with a mostly successful outcome. As a result of the so-called “merge”, Ether’s price outperformed Bitcoin’s last week.
The price of Ether is up about 13% in the past week, while the price of Bitcoin is up about 7%. A major factor in this shift is the Ethereum network, which uses a method known as proof-of-work. Miners used to need powerful computers to solve complex math problems in order to record a transaction on the blockchain – a public, digital ledger.
In what is known as “proof-of-stake”, miners will soon be able to validate trades by putting some of their crypto in dedicated wallets after the eco-friendly upgrade. Because it doesn’t require expensive computers to solve math problems, this method is less energy-intensive.