How Much Energy Will the Ethereum “Merge” Save?
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Ethereum – the world’s second-largest digital currency by market capitalization and Bitcoin’s number one competitor – allegedly experienced a flip from Proof of Work (PoW) to Stake (PoS) just over a week ago.
Ethereum has completed the merger
Many are wondering how much energy is going to be saved now that Ethereum has made the move it has been talking about for God knows how many years, and according to one analyst, Ethereum is set to reduce its energy usage by over 99 percent.
In an interview, Alex de Vries – a Dutch economist who works with the Digiconomist website – explained:
They could cut a huge part of their power needs. I’ll try to measure it more closely, but at least 99 percent (probably even 99.9 percent) reduction should be achievable. This means that the electricity consumption of a country like Portugal (a quarter of the world’s data centers combined) will disappear overnight.
Known as “The Merge”, the transition from PoW to PoS is intended to make Ethereum much more efficient not only in terms of energy savings, but also to make Ethereum significantly faster and lower gas fees for its users. Throwing their two cents into the mix was the Ethereum Foundation, which explained not too long ago:
Imagine Ethereum is a spaceship not quite ready for interstellar travel. With the lighthouse chain, the community has built a new engine and hardened frame. After significant testing, it’s almost time to replace the new engine with the old midplane. This combines a new more powerful engine with an existing ship that is ready to set some serious light years and take on the universe.
However, there may be small problems ahead, as the organization points out. It continued its statement as follows:
You should be on the lookout for scams that try to take advantage of users during this transition. Don’t send ETH anywhere to upgrade to ETH2. There is no ETH2 token and you don’t need to do anything to keep your money safe.
Too much energy use
Energy use in the digital currency space has been discussed a lot over the years. Many are concerned that mining or extracting crypto units from their respective blockchains requires too much electricity.
That argument has clearly gone through the heads of people like Elon Musk, the South African billionaire behind companies like Tesla and SpaceX. Musk announced last year that he would allow bitcoin holders to buy Tesla vehicles with their coins. However, this was immediately overturned because Musk was too concerned about how much energy was needed to mine BTC, and he said he would not allow this unless miners were more open about their energy sources.