Ethereum (ETH) is looking to go on an energy diet which will allow it to compete with more other efficient projects in the Blockchain. The move is one of the planned upgrades within the network by its co-founder Vitalik Buterin.
Ethereum (ETH) Price Today – ETH / USD
It is essential to indicate that while Bitcoin (BTC) gets all the attention, leaving its smaller counterpart Ethereum (ETH) in the shadows, doesn’t mean that Ethereum (ETH) is small. In fact, the market capitalization of Ethereum (ETH) “was $10 billion as of the time this content was published and it also has a whopping energy footprint just like Bitcoin (BTC).
While Ethereum (ETH) energy footprint is enormous, mining the digital asset consumes only a quarter and half of the amount of energy it takes to mine Bitcoin (BTC). This still means that for the large part of 2018 Ethereum (ETH) was using roughly the same amount of electricity as Iceland. The traditional Ethereum (ETH) transaction consumes more power than the average U.S. household consumes in one day.
Overhaul of Ethereum (ETH) Code Ambition for This Year
Buterin has chosen to start undoing his creation’s energy waste this year 2019. According to Buterin, we will see the Ethereum Foundation and broader open-source movement initiate an overdue overhaul of the Ethereum code. If the developers are right, the end of 2019 will see Ethereum’s new code complete transactions using only 1% of the amount of energy it utilizes today.
Ethereum relies on the Blockchain technology. However, Buterin designed the Ethereum network to do more than merely maintain a ledger without central authority securely. His actual vision for Ethereum (ETH) was for the digital asset to be a decentralized global computer that is accessible to all, and immune to downtime, fraud and censorship.
Ability to Store Data, Automate Distribution of Value, and Support Decisions Gives Ethereum (ETH) Potential to Become Global Computer
What actually gives Ethereum such a potential is the ability to store up data, automate the distribution of value and support decisions. It manages these tasks by means of smart contracts, and programs written by developers or users in Ethereum (ETH) custom coding language. The smart contracts have business applications, but the hope in the long-term is that apps built using them will make Ethereum (ETH) the ideal cloud computing platform.
That vision clashes with the current reality of Ethereum (ETH). While there are several multimillion-dollar apps operating on Ethereum, Ethereum is consuming far more resources in terms of energy than it returns in benefits to the society.
Replacing the PoW With the PoS Concensus is an Ecological and Financially Beneficial Initiative
Ethereum’s plan for this year is to replace the PoW concensus with the PoS (an alternative mechanism to facilitate the distributed consensus that was initially applied to a digital currency with Peercoin launch back in 2012. As opposed to millions of processors simultaneously processing similar transactions, PoS will randomly pick one and do the job. Although shifting to the PoS will cut down energy usage per Ethereum transaction by 99% ultimately slashing computing power, the move isn’t just ecological. There are financial gains. The benefit here is that this initiative will reduce how fresh Ether tokens are issued to uplift validators.