The Creator of the Ethereum Cryptocurrency Announces a Major Protocol Update
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Today, September 15, the creator of the Ethereum cryptocurrency Vitalik Buterin informed on the completion of a large-scale software modernization program. Some experts believe that this could be a revolution in the field of cryptocurrencies, as the change concerns the very way to create tokens and make transactions. The most important consequence of the update will be a significant reduction in energy consumption during the creation of tokens, for which cryptocurrency mining systems are usually criticized. According to the Ethereum Foundation, the total power consumption when using the new system will be reduced by 99.95%.
We are talking about changing the proof-of-work consensus protocol to the proof-of-stake protocol. As experts explain, miners (those who mined cryptocurrency) will be replaced by stakers (those who add up funds for deposits). To create tokens, you will now need less powerful equipment. The greatest chances for the formation of a new block in the blockchain, and hence for receiving a reward from the network, will be received by those who have the largest number of coins in their account.
According to Bank of America analysts, a significant reduction in energy consumption may allow institutional investors who were prohibited from buying proof-of-work tokens to purchase tokens with the new protocol. The fact that Ethereum will switch to a new protocol was announced back in 2020. More than 100 developers worked on the project. Ethereum ranks second in the cryptocurrency market after bitcoin, accounting for about 20% of the market.
The Ethereum exchange rate today decreased by 3.4% and amounted to $1592 per token.
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