Ethereum cryptocurrency seeks to improve technology to reduce environmental harm

Tram Ho

Tiền điện tử Ethereum tìm cách cải tiến công nghệ giảm thiểu tác hại về môi trường - Ảnh 1.

Ethereum digital currency. Photo: AFP/VNA

Ethereum will conduct this important technical revolution next September. This improvement comes from the fact that digital currencies have been criticized in the past because the process of “mining” these currencies requires solving a lot of complex algorithms, using powerful computers, consuming money. lots of energy. A blockchain is a decentralized and highly secure ledger that records these transactions as the cryptocurrencies are transferred across a network of computers. Users will be confirmed to have successfully “mined” cryptocurrencies through a “proof-of-work” mechanism for crypto rewards – but only after they have demonstrated participation. participate in this energy-intensive “mining” process.

The cryptocurrency industry is valued at around $1 trillion. However, the value of the ethereum cryptocurrency has also plummeted around 55% year-to-date. Ethereum is popular because most digital assets are bought and sold with it. Partly because users can create “smart contracts” or computer algorithmic codes that can execute specific transactions for different functions.

Lennart Ante, chief executive officer (CEO) of Blockchain Research Lab, said that ethereum’s blockchain technology is already the basic infrastructure of most of the cryptocurrency ecosystem. Almost everything depends on ethereum. A few years ago there were some similar platforms like Solana or Cadano but so far none have grown into a large network with a large number of developers, projects and success like ehtereum. Because of this popularity, the responsibility to minimize the environmental impact of ehtereum is even more urgent to avoid being boycotted.

Cryptocurrency expert Eswar Prasad, of Cornell University, asserts that the process of “mining” cryptocurrencies is environmentally harmful, expensive and inefficient. In addition, the carbon emissions consequences of a decentralized blockchain system are difficult to determine because the sources of electricity use are not always transparent. Ehtereum currently consumes about 45 terawatt-hours of electricity per year while Bitcoin consumes about 95 terawatt-hours of electricity per year, equivalent to the consumption of the whole country of Pakistan in 1 year.

Ethereum creator Vitalik Buterin planned to improve by changing the certification mechanism. Experts say that changing the certification mechanism will help ethereum reduce about 99% of electricity consumption, thereby helping users to make transactions faster and more efficiently. Ante CEO said that the power consumption will be close to zero, no need for hardware, only software. However, expert Prasad assessed the new mechanism as “imperfect” in terms of liquidity and concerns from the government. In addition, many users may still want to use energy to “mine” cryptocurrencies and switch to other cryptocurrencies.

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Source : Genk