In what’s being called a transformative event for cryptocurrencies, Ethereum’s (ETH) switch to a more energy efficient proof-of-stake protocol has been successfully completed and is now live.
The switch to the proof-of-stake operating model, which was undertaken over several weeks in a process known as “the Merge,” will cut the energy used to achieve new Ethereum tokens by nearly 100%.
Industry observers are likening the switch in Ethereum’s operating model to vehicles moving from gasoline-powered engines to electric.
Ethereum’s developers say the upgrade makes the blockchain network that is home to $60 billion of cryptocurrency exchanges, lenders, and non-fungible tokens (NFTs), more secure and easier to scale.
After weeks of round the clock work, Ethereum has migrated to a system known as proof-of-stake, which transitions the cryptocurrency from miners to validators.
Instead of using power-intensive computers to mine for Ethereum, validators leverage a cache of Ethereum to verify transactions and secure new tokens.
Other cryptocurrencies, including Bitcoin (BTC), are expected to follow Ethereum and eventually move to a proof-of-stake protocol as well.
The big knock-on cryptocurrencies such as Ethereum and Bitcoin has been that they consume massive amounts of electricity and are bad for the environment.
The price of Ethereum is up about 3% following completion of the Merge to $1,640 U.S. So far this year, Ethereum’s price has declined 58%.
