Since cryptocurrencies started to blow up, two names have always come up in every conversation about the market, Bitcoin and Ethereum. Bitcoin, being the poster child of the entire market, was responsible for all of this hype in the first place. And not only are both of these the most lucrative assets of all time, they also happen to be the most expensive currencies ever. And since the beginning, Ether has always been behind Bitcoin and has been chasing in its shadow. But now, things might change with Ether’s new upgrade.
The crypto market has been at the receiving end of a variety of controversies. People used to judge these currencies saying that they only exist for criminals on the internet to use. And now, there is a more serious concern about its environmental impact.
In order to mine cryptocurrencies, computers will have to perform very advanced calculations, which can lead to them using a lot of power. And since most countries still generate electricity through fossil fuels, cryptocurrency has a very large carbon footprint. It is also one of the reasons why China banned cryptocurrency trading and mining within the country altogether.
However, the latest update by Ethereum is all set to flip that notion on its head. Known as Eth2, the new upgrade has been teased for the past two years. But due to delays and technical difficulties, Ether was having trouble properly adapting to the model.
But now, they have made a secondary channel for ether called Eth2. This new channel will not be using the same CPU and GPU intensive processes for mining. This proof-of-stake method will be able to help them reduce the sustainability issue that has been popping up recently.
Although only a handful of cryptocurrency use this model so far, it can prove to be very successful in the long run. Some of these cryptocurrencies include Algroand and Cardano, which made waves recently for their sustainable tokens. And if Ether shifts completely to it, crypto mining will be a more sustainable practice.
Furthermore, the new Ethereum framework will be able help alleviate the issue of GPU usage. Since most miners make use of these gaming processors, they can be very difficult to find for other people. Unfortunately though, this model will not be coming until the mid of 2022.
So even though GPUs will still be short this holiday season, this is a good step for the market to be taking. Since Ether is one of the big two of the crypto market, it is clear that it will eventually influence other cryptocurrencies to follow in its footsteps. And when that happens, the crypto market will become even more sustainable.