NewsDesk, Sept 19 – Complex software changes in the cryptocurrency Ethereum could drastically reduce energy consumption, resulting in climate-related pollution. But a migration called “merge” alone is not enough.
With the changes going into effect late Wednesday, Ethereum, the world’s second most valuable cryptocurrency after Bitcoin, will be able to effectively perform the energy-intensive task of “mining” new coins on the blockchain. eliminated to Mining requires enormous computing power, resulting in enormous energy consumption and increasing greenhouse gas emissions from older power plants in many regions.
However, while the Ethereum Switch alone cannot completely eliminate the expected environmental impact of cryptocurrencies, it is expected to be of great help. Bitcoin supporters have shown little interest in deprecating mining so far.
Back up a second. What is cryptocurrency?
Cryptocurrency is a type of digital money that is open to the public and believed to be immutably protected by cryptography. These currencies allow people to conduct direct financial transactions without the need for banks or other financial intermediaries.
They run on a structure called a blockchain and consist of digitally signed transaction records that document each transfer or issuance of a crypto coin. A blockchain is also called a distributed ledger because synchronised copies are stored on computers around the world.
Is cryptocurrency bad for the environment?
Researchers who have studied cryptocurrencies are wary of their enormous energy consumption. A recent report by the White House Office of Science and Technology Policy cites research showing that as of August 2022, cryptocurrencies will exceed the annual power consumption of individual countries such as Argentina and Australia. Increase.
However, this problem is not unique to cryptocurrencies. Mining consumes a large portion of that energy. Cryptocurrency mining is the computationally demanding process of validating blockchain transactions that awards fresh currencies to rival miners.Cryptocurrency mining favours groups with sufficient resources that can assemble many specialised computers and run them as cheaply as possible.