The currency of the Ethereum platform is called Ether.
© APA/AFP/INA FASSBENDER / INA FASSBENDER
Ethereum technology with its own cryptocurrency ether could reduce their energy consumption by system transformation significantly reduced in September. According to a new study, cryptocurrency now consumes up to 99.9996% less electricity. In absolute numbers, it’s about the same Electricity consumption in Ireland or Austria.
“The Merge” has made Ethereum more sustainable
Cryptocurrencies such as Bitcoin or Ether have long been criticized for being very energy intensive. In mid-September, the so-called “proof of workwas used. In order to validate transactions on the blockchain in a tamper-proof manner, computer processors had to complicated calculations carry out. Whoever solved the puzzles first received a reward in the form of Bitcoin or Ether.
At Ethereum, we dissolved with a “merge” event September 15 of this concept and moved to the so-called “Proof of StakeHere, randomly selected participants in the network validate the validity of a transaction. The more shares a participant has in the network, the more likely they are to be selected for it.
Bitcoin Community Reviews
Bitcoin advocates in particular find this method unfair. However, the method has the advantage much less energy need.
“The Bitcoin community was very much against the change – but the Ethereum community, despite concerns and resistance, showed that the software could be made more environmentally friendly,” writes study author Alex De. Vries from the Vrije Universiteit Amsterdam.
Power consumption similar to Mastercard
According to his calculations, Ether now uses between 0.8 and 14.7 watt-hours of energy per transaction. For comparison: an average Mastercard transactions necessary 0.7 watt hours.
Before the merger, Ethereum needed around 100 terawatt hours of electricity per year – this roughly corresponds to the consumption in the Netherlands. In 2021, Austria consumed around 73 terawatt hours Electricity.
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