Goodbye miners, you will lose your job. Ethereum is facing the biggest change in history

Goodbye miners, you will lose your job.  Ethereum is facing the biggest change in history

If you’re watching what’s going on in the cryptocurrency world, you’ve probably heard of the Proof of Work (PoW) and Proof of Stake (PoS) systems, which run most of the blockchains of known cryptocurrencies.

The former, which relies on bitcoin and currently the Ethereum network, works thanks to miners who put transactions grouped into blocks into a publicly accessible chain (blockchain).

However, the work that miners have to do consists of millions of complex calculations and calculations, the difficulty of which increases in direct proportion to the number of miners in the network. The first miner to achieve the required output shares it in a network that checks it and is subsequently rewarded with a cryptocurrency, currently 6.25 BTC, or slightly less than 3 ETH.

As the portal informs Bloomberg and in our articles we have alerted you to this information in the past, Ethereum is going to move fully to Proof of Stake in early 2022, which is to solve many problems of the second largest cryptocurrency.

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Significant reduction in energy consumption and faster transactions

One of them, as with bitcoin, is the fact that mining, together with the rise in the price of cryptocurrency, becomes significantly more difficult and requires a huge amount of energy. According to scientists from Cambridge University bitcoin currently has an annual consumption of about 84 TWh, which is less than during the first half of this year, but still more than countries such as Belgium, Austria, Chile and the Czech Republic. A similar consumption problem is slowly occurring with Etherea.

Another problem is the “centralization”, respectively the dominance of large mining companies, which with their volume of mining literally “roll over” domestic miners. However, they will also lose their job during the transition to PoS, so to speak.

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The transition to PoS at etherea has many supporters, who emphasize its ecological side and the fact that it will show the ability of the cryptocurrency to “adapt” to time and significantly accelerate its transactions, which according to the creator Vitalik Buterin up to 100,000 per second, and reduce consumption which has according to the developers fall by up to 99.5%.

Etherea’s PoS will work to control transactions through “stacking”, ie locking cryptocurrencies, and validators to verify transactions. Anyone who “stacks”, ie locks for at least 32 ethers, can take part in this process.

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The network then randomly randomly determines a group of validators, whose task will be to rank the individual transactions into a final block, which is then verified in the network by a group of selected “certifiers”. They check the proposed block and either accept it or reject it. If the block is accepted, validators and certifiers will receive a reward in the form of ether.

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However, the Proof of Stake system also has several disadvantages that developers try to overcome before it is fully implemented. One is the ability to gain control over the transaction verification process, which could happen if a validator with a huge amount of ether or a large group works together to get a majority of “votes” in the verification.

This is one of the reasons why obstacles have been introduced in the PoS system against similar practices to help prevent fraud. If one of the validators or attestants proposes or approves a bad block, it loses its “stacked” share of ether.

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