About Ethereum - Proof of Work changing to Proof of Stake
What is the Ethereum Proof of Work to Proof of stake change?
What this means to ETH investors, to the climate and to the world.
Ethereum is currently in the transition from a proof-of-work system, known as Mining, to a proof-of-stake system.
When all is completed, ETH 2.0 will then be born.
Mining uses massive amounts of electricity, which is what Bitcoin still does and does not seem to be able to escape.
In the past, the cost of electricity at some points of the process, could even outweigh the costs of mining the very token itself. It really was and still is insane.
Proof of stake on the other hand, just relies on ETH investors staking some or all of their ETH to a smart contract. This should make the network about 99% more energy-efficient.
The very act of Stake holding, validates the ETH transactions. The Stakeholders also earn a percentage of ETH for providing this eco friendly service. It is very much win-win.
Outcome - Will we see such a huge difference between the price of BTC and ETH, after this process is completed? Could we even see the ETH outvalue that of BTC and swap places on the Crypto value leader board?
Serious "Coiners" may well mock such a claim, but let us see how "green" crypto investors really are prepared to be. Plus, if a desire to improve ecology does not get to them, maybe the current cost of energy will have an effect on their thought process?
This entire process is huge. I am convinced that many people are still blinkered by the volatile attraction of Bitcoin and have still not engaged with the ecological aspect of this change to our second largest cryptocurrency.
Further reading: Bitcoin Mining
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