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Ethereum wants to reduce energy consumption by 99%


Ethereum intends to switch to POS, which is expected to reduce energy consumption by a factor of a hundred, or about 99%. In particular, after repeated statements that the cryptocurrency uses too much energy and therefore is inefficient and harms the environment.

Like Bitcoin, Ethereum uses Proof-Of-Work as a consensus mechanism to protect the blockchain. This requires miners to equip themselves with computing power, which leads to an increase in the cost of electricity by millions dollars. Proof-Of-Work is based on the concept of large quantities of electricity and mining equipment solely, because it generates rewards in the form of extracted cryptocurrencies. This means that high mining power is directly proportional to revenue.

Proof-Of-Stake applies a completely opposite philosophy to protect the network. In the Proof-Of-Stake system, validators are the equivalent of miners. And the main task in the POS system is to make sure that validators are always honest. One of the most interesting things about PoS is the fact that these validators do not spend so much energy (compared to PoW) to protect the network, the remuneration can be much lower and, as a result, there is no need to release so many new coins to motivate participants to continue participate in the network.

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