The Merge – Ethereum, the world’s second biggest cryptocurrency, attempts the Merge, a radical new operating model that cuts its energy usage by 99%. Will it work – and how will it reshape crypto?
Source: BBC Podcast
Date: September 22nd, 2022
Link to podcast (Start to about 10 minutes 45 seconds in) https://www.bbc.co.uk/sounds/play/w3ct375m
- Why is it important that the technology of blockchain is efficient when it comes to energy use?
- Proof of stake is how ethereum works. It has been described like this: “There’s a lottery. To win the lottery, you need to purchase a lottery ticket. To be allowed to buy a lottery ticket, you must be chosen. To be chosen, you need to commit money to the lottery. The more money you commit, the more likely you are to be chosen. If you’re chosen to buy a ticket, your ticket will automatically match the winning number and you win. So the more money you have committed, the more likely you are to win the lottery.” (https://www.coindesk.com/business/2022/08/14/the-investors-definitive-guide-to-proof-of-work-and-proof-of-stake-abridged/). This doesn’t seem quite fair. Thoughts?