Earlier this year, we celebrated the seventh anniversary of Ethereum. It was an opportunity to witness some of the platform’s major milestones and key players who have helped drive its growth. And what a long way we have come! Since its launch in 2015, Ethereum has matured significantly, enjoyed substantial user growth and is well on its way to becoming a more mainstream business tool. However, despite the myriad benefits it offers, the platform has also long endured significant criticisms related to its environmental footprint. And, this criticism is valid as of now… On September 15th, an important and much awaited Ethereum update, known as Sickness, revolutionized some of the platform’s fundamental features, changed the way blockchain grew, and made its historic environmental challenges exactly what it is: history. To better understand the platform’s past stability issues and this important solution, let’s revisit the introduction of Ethereum.
In 2015, Ethereum was launched as a Proof of Work (PoW) platform. With PoW, Ethereum node operators, known as “miners”, compete to propose new blocks to the chain. This competition demands significant computational work and requires a large amount of energy to perform. It is important to note that the founders of Ethereum deliberately developed the platform in this way. The PoW format, pioneered by bitcoin, was effective in keeping the system secure – since mining new blocks requires significant computational work, and miners have to pay for energy (and buy a lot of hardware), No one miner can dominate the network. This approach helps to keep block production decentralized, which ensures the security of the network and prevents malicious actions – all important and positive features of the Ethereum blockchain.
Of course, the downside is that the energy put into connecting the blockchain to the PoW system creates a significant carbon footprint. This challenge did not come as a surprise. The founders of Ethereum knew that PoW would eventually become volatile, and switching to a Proof-of-Stake (PoS) system was always a planned step on the Ethereum roadmap. With PoS, contributors, known as “verifiers”, create new block offers by locking up 32 ETH of their own money, rather than competing. Before a block is added to the chain it must be approved by two-thirds of validators, and if it is rejected a portion of the validator’s 32 ETH investment is lost. This costly punishment helps prevent malicious actions and ensure the overall security of the ecosystem.
Moving to PoS is dubbed Sickness. This has been talked about for some time now and is expected to drastically reduce the platform’s energy consumption and significantly reduce its carbon footprint. Ethereum Foundation Suggests Merge Will Incredibly Reduce Ethereum’s Energy Use 99.95%This allows it to completely remove the environmental stigma and establish it as an even more attractive and viable business tool.
You might be wondering why did it take so long to reach this point? The simple answer is, it’s complicated. Building a scalable and decentralized PoS system requires extensive research and significant innovations in cryptography. The PoS technology available at the time of Ethereum’s launch in 2015 did not meet the community’s standards for decentralization and security, and while other projects opted to move to PoS earlier and compromise in these areas, Ethereum refrained from making those sacrifices. refused. Instead, developers took the time needed to ensure the long-term health, functionality and growth of the platform, all important factors for business users.
The business benefits of moving to PoS are clear: a more sustainable platform creates a more attractive business tool and PoW reduces the risk of environmental embarrassment for building on blockchain. In fact, the move to a more sustainable model is likely to boost Ethereum’s appeal to a wider audience, attracting more users and ultimately helping to build a stronger, more secure ecosystem.
While The Merge should not be viewed as Ethereum’s “final destination”, it is an important step on the platform’s roadmap that will reduce the environmental criticism it has long endured and significantly reduce its carbon footprint. will do it. Looking back recently on the progress made in the first seven years of Ethereum, it is exciting to see what could happen over the next seven years. We are now living in a post-merger world, and Ethereum is an even stronger, more sustainable platform that can better help businesses across industries increase efficiency, cut costs, and better achieve their goals. Here at EEA, we can’t wait to help more companies use this valuable tool to advance their operations.
Want to learn more about the EEA and the many benefits of membership? Contact team member James Harsh [email protected] Or visit https://entethalliance.org/become-a-member/.