One of the major problems facing digital currencies is the large carbon footprint they leave behind. But now, some innovations seem to allow this process to become more environmentally friendly within the next year.
Both Ethereum and Bitcoin work using both a system which requires a global network of computers operating 24 hours a day. Software developers at Ethereum have been working for years to make the transition blockchain in what is known as a pilot participation system, which uses a completely different approach to securing the grid, which also eliminates the issue of carbon emissions. Due to its complex nature, however, it took several years to complete.
The inventor of Ethereum, Vitalik Buterin, hopes that the change will take place by the end of the year, while others say that it will be implemented by the first half of 2022, ie about a year earlier than expected in December.
The change could help boost the price of the Ether cryptocurrency, which is essential to using Ethereum, as environmentally conscious investors take into account the much smaller carbon footprint.
The transition that Ethereum developers make is a huge deal. They need to create, test and implement a whole new way to secure their network while maintaining the existing blockchain. Then, when the time comes, they will merge the existing blockchain into the new architecture. The change will also radically increase the speed of transactions that Ethereum can process, making it more competitive in established payment networks such as Visa or Mastercard.
In the new method, Ether cryptocurrency replaces hardware and electricity as a cost of capital. At least 32 Ethers are required for a user to bet on the new network. The more Ether a user bets, the more chances he has to be selected to secure the next batch of trades, which will be rewarded with a free, albeit smaller amount of Ether, as in the older method.
Of course we will have to wait a few more months to see the beneficial results of the new cryptocurrency mining method.