Ethereum upgrades technology to cut CO2 output by 99%: Report
Ethereum has completed a key revamp of its blockchain network, marking the crypto world’s most-ambitious software upgrade to date. As a result, Ethereum’s carbon consumption will decline by an estimated 99 per cent. Called the Merge, the upgrade completed in the early hours of Thursday, Ethereum co-founder Vitalik Buterin tweeted.
The change replaced power-hungry computers that were used to order transactions on the network with a more energy-efficient set-up using piles of the network’s native token, Ether, placed in special, so-called staking wallets.
Such an upheaval had never been attempted in crypto before, let alone on Ethereum, home to about 3,500 active decentralised apps, ranging from exchanges to games and handling billions of dollars worth of crypto. In the works for years, the Merge doesn’t change the end-user experience on the second-biggest blockchain, but it’s a key stepping stone to more upgrades that will make the network faster and cheaper, and should further increase its stature and usage.
The software upgrade is called the Merge because the existing Ethereum blockchain will combine with a parallel network that’s been running for almost two years to test the proof-of-stake concept. Overall, the upgrade has been under consideration for over seven years.
“This is the first step in Ethereum’s big journey toward being a very mature system,” Buterin said during an online Merge viewing party — essentially a public video call where developers tracked live progress on the switch. “And there’s steps left to go. We still have to scale, we have to fix privacy. To me the Merge symbolises the difference between an early stage Ethereum and the Ethereum we’ve always wanted.”
As it became clear the transition had worked, developers who had worked on the the project for months started congratulating each other on the call. Watched by more than 41,000 people at peak, the viewing party featured content ranging from dry technical explanations of what the Merge would entail, to the performance of a Merge-themed song. Lyrics included: “Carbon footprint is all gone. That’s why we are singing the Merge song.”
The Merge also changed properties of Ether, making it more akin to yield-bearing securities. Staked Ether will generate a return, expected to be around 5.2 per cent after the Merge, according to tracker Staking Rewards. Coupled with an expected net decrease in Ether token supply soon after the update, that should make the coin more attractive to investors. Ether was down 1.2 per cent to $1,584 following the merge. The token has surged more than fivefold in 2021, outperforming Bitcoin by a wide margin, in part on optimism over the Merge. Both cryptocurrencies have struggled since hitting record highs in November, with Ether down more than 50 per cent this year.
Even though completed, the Merge could be followed by days or even weeks of hiccups, based on what happened after some prior Ethereum software updates.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
Gloss