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The second biggest cryptocurrency, Ethereum, is set to switch over to a new operating model that it says uses 99.9% less energy.

Called The Merge, the change has been planned for eight years, and is designed to answer critics who reject cryptocurrency on environmental grounds.

Source: BBC News

Date: September 22nd, 2022

Link to 2 minute 32 second video: https://www.bbc.com/news/av/world-62899880

Discussion

  1. “The Merge” is taking Ethereum, which is a workhorse of blockchain technology, from “proof of work” to “proof of stake”.
    “Proof of Work” is how bitcoin works, and is described here if you are not sure about it: https://en.wikipedia.org/wiki/Bitcoin#Mining
    “Proof of Stake” is a different way of making sure a new addition to the blockchain is valid. It is described in detail here: https://blockgeeks.com/guides/proof-of-work-vs-proof-of-stake/

    Why is it so important to move from (very energy intensive) proof of work to (energy un-intensive) proof of stake?
  2. In “Proof of stake” the more you own, the more you get to be the one deciding that what goes on the blockchain is valid. How is this better?

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