Ethereum crypto overhaul targets environmental impact By Joseph SOTINEL London (AFP) Aug 28, 2022 The world's second biggest cryptocurrency after bitcoin, ethereum, will soon overhaul its blockchain technology to curb the network's much-criticised environmental impact. Ethereum, whose digital unit ether tumbled in a crypto crash earlier this year, will in September undergo a major technical revolution. So what is the backdrop for the looming reset -- known as the Merge -- and how will it calm prices and cut electricity usage? - Why does crypto use so much energy? - Bitcoin, ethereum and other such currencies are "mined" by solving complex puzzles using powerful computers that consume enormous amounts of energy in vast warehouses, often near cheap electricity sources. A blockchain is the decentralised and secure ledger for recording those transactions, which occur when encrypted codes are passed across a computer network. Users validate their success via a so-called "proof of work" mechanism that rewards them with cyber currency -- but only after they have proved their participation in such energy-intensive mining. The lucrative crypto industry is worth about $1.0 trillion, despite crashing in the first half of 2022. However, ethereum is still down by a hefty 55 percent in value so far this year. - Why is ethereum popular? - Ethereum is nevertheless regarded as vital because it is where most virtual assets, including headline-grabbing non-fungible tokens (NFTs), are bought and sold. That is partly because users can create "smart contracts" or algorithmic computer code, which carry out customised transactions for different functions. "The ethereum blockchain is the base layer infrastructure of the majority of the whole crypto ecosystem," summarised Lennart Ante, CEO and co-founder of the Blockchain Research Lab. "Everything relies on ethereum," he told AFP. "In the last few years, there have been other similar platforms such as Solana or Cadano, but none of these have this huge network and this huge amount of developers and projects, and historical success." - Why is it changing? - Ethereum's broad adoption makes it even more important to address environmental concerns and change tack, as those worries had sparked a partial boycott. "Proof-of-work mining is environmentally destructive, expensive, and inefficient," summarised digital currency specialist Eswar Prasad, a professor at Cornell University. Yet the carbon footprint of a decentralised blockchain system is difficult to assess because electricity sources are not always identified. - What is the switch? - Ethereum creator Vitalik Buterin has planned for a switch to a so-called "proof of stake" mechanism from the middle of September. This means that participation no longer requires proof of electricity usage, and instead relies on staking blocks of ether. Users will then validate, or effectively bet their currency, in order to try and win more ether. Ethereum currently consumes about 45 terawatt hours of power per year. Bitcoin in contrast is estimated to use 95 terawatt hours of power per year, equivalent to Pakistan's annual consumption. - What are pros and cons? - Experts estimates the upgrade will use 99 percent less energy than the current set-up. It would therefore allow users to execute quicker and more efficient transactions. "The energy consumption would be close to zero," Ante told AFP. "You do not need any of the hardware anymore, only the software." At the same time, the new approach is not without risks. Some users might decide to switch to rival networks where they can still able to use enormous amounts of energy to mine currency. Prasad also cautioned that the proof-of-stake method was "not perfect" owing to liquidity and governance concerns.
Lights out? Swiss brace for looming power shortages Finhaut-Emosson, Switzerland (AFP) Aug 26, 2022 Switzerland is among the world's wealthiest countries, but its reliance on Russian gas and French nuclear power - both in short supply - has it bracing for power shortages and even blackouts this winter. With hundreds of hydropower plants spread across the Alps, Switzerland produces more than enough power in the summer months. However, the landlocked nation is forced to turn to imports when the cold sets in. That is not usually a problem, but this year, with the war in Ukraine, and Russia slas ... read more
|
|
The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us. |