BlockchainFlash

Latest news and thoughts on Bitcoin and cryptocurrency

Month: April 2022

Ethereum will no longer be mineable- Announced changes

Ethereum will no longer be able to mine.

The authors of the second most popular cryptocurrency in the world have announced major changes, which primarily concern mining, ie the creation of new Ethereum.

Well, that doesn’t seem to be the case anymore.

Ether, like Bitcoin, is created by very fast computers solving complex tasks.

When the task is solved, Ethereum is obtained and everything is written in the blockchain.

The problem is that this process is very demanding and consumes a huge amount of energy, and very powerful machines are needed.

That is why mining is banned in many countries.

Now that is changing, so the concept of proof-of-work, which existed until now, will no longer be possible, but only a new proof-of-stake.

This means that Ethereum owners are becoming so-called validators.

The more Ether you have, the greater the chance that you will be a validator who will stack transactions into blocks and get a reward for it.

And since validators use their own cryptocurrency to invest, they are motivated to do so.

If they do not participate in the process, their invested ether begins to decline.

Everything should work and ensure high security of transactions and ownership of cryptocurrency.

These changes should reduce energy consumption by 99 percent and make mining machines virtually unnecessary.

Critics of the process point out that this change is similar to the replacement of the engine on the plane during the flight.

Others complain about the fact that cryptocurrencies are not safe because such changes are possible at all.