It's Just Technology
Join us as we dive deep into Ethereum 2.0, the next evolution of the Ethereum blockchain. From scalability enhancements to energy efficiency improvements, we explore how Ethereum 2.0 is set to transform the crypto world.
Whether you’re a seasoned crypto investor or new to the blockchain universe, this comprehensive guide is a must-watch.
Blockchain technology has a reputation for consuming an enormous amount of energy. What can be done to address sustainability issues around blockchain, NFTs, and Web3 technologies?
Ethereum Core Developer Preston Van Loon shares his experience of working on the blockchain’s long-awaited transition to proof-of-stake, now complete.
At 6:42 A.M. Coordinated Universal Time (2:42 A.M. EDT), the Ethereum blockchain merged with a special-purpose decentralized ledger called the Beacon Chain, concluding its transition to near-carbon neutrality. The shift may not only mute criticism of blockchain energy usage and serve as a boost to the struggling industry, but it could also help take crypto mainstream. Ethereum underpins the vast majority of Web3 applications such as decentralized finance protocols and non-fungible tokens (NFTs), as well as ether, the second-largest cryptocurrency with a $195 billion market value. The token has risen 3% since the Merge was completed but is currently trading at $1,593, down 0.81% over the past 24 hours.
Since its inception, Ethereum has been using the proof-of-work system for verifying transactions. Popularized by bitcoin, proof-of-work relies on operators of powerful computers, known as miners, that validate each new block of transactions added to the chain by solving complex math puzzles and get rewarded for the effort in the blockchain’s cryptocurrency. The approach has drawn widespread criticism from crypto-skeptics and environmentalists because of its immense energy usage—Ethereum’s carbon footprint has been compared to that of Finland.
Starting today, Ethereum will use an alternative mechanism called proof-of-stake. The switch has been part of the project’s roadmap since early days but faced repeated delays as the proof-of-stake technology evolved. Miners are now replaced with validators, who pledge, or stake, ether tokens as collateral to verify transactions and accrue interest on the staked assets as a reward. As a result, the network’s energy usage should drop by more than 99%, according to the Ethereum Foundation.
The crypto platform Ethereum is preparing for a major system overhaul aimed at reducing the amount of electricity the network uses. But the update could lead to other changes to how Ethereum works. WSJ cryptocurrency reporter Paul Vigna joins host Zoe Thomas to discuss why the change is being implemented and what it could mean for the network.
Algorand Foundation CEO Staci Warden speaks with Bloomberg’s Emily Chang and Sonali Basak about the environmental impact of cryptocurrency and using blockchain technology to offset carbon emissions.
Almost all money in the world is already digital, entries in a ledger which is usually managed by a bank. Only a small portion exists as physical, such as cash or coins. Given that we already have a mostly digital monetary system and are increasingly immersed in a computer-based world, true peer-to-peer digital money appears to be the next logical step.
Most cryptocurrencies work on a foundational concept known as the blockchain. Public blockchains serve as a repository for information that anyone can add to, no one can change, and no single person or entity can control. Instead of a single company or individual being in charge, responsibility is decentralized, spread out to everyone on the network. Blocks in traditional cryptocurrencies contain records of valid transactions that have occurred on the network.
Blockchain technology also has many exciting uses and possibilities beyond cryptocurrency. Blockchains are being used in medical research to improve the accuracy of healthcare records, to streamline supply chains, and to enhance many other applications.
New blocks are regularly added to the chain of previously stored data, approximately every ten minutes in the case of Bitcoin, through a process figuratively called “mining”. Cryptocurrency miners are simply individuals with powerful computers competing against one another to solve complex mathematical equations which verify the ledger’s transactions. This process is called “proof of work.”
Another significant verification mechanism is called “proof of stake.” Instead of requiring people to use a large amount of resources to solve complex equations in order to verify transactions, the proof of stake model employs a network of “validators” who contribute or “stake” their own crypto in exchange for the chance to validate new transactions and update the blockchain, earning a reward.
In late 2008, a mysterious person or group going by the name Satoshi Nakamoto published a whitepaper online explaining the principles behind a new type of digital currency known as Bitcoin. Fundamentally, cryptocurrencies enable peer-to-peer money transfers without the use of an intermediary. There are many more potential advantages as well. For one, the blockchain reduces risk, fraud and corruption. Because the blockchain ledger is distributed across the network’s computers, which are constantly verifying its accuracy there is no central vault, entity, or database that can be hacked, stolen, or manipulated.
Let’s not forget that banks have fairly strict working hours and are closed at least one or two days a week, whereas cryptocurrency transactions can be made anytime. Cryptocurrency also has the powerful potential to serve the “unbanked”. A vast portion of the world’s population has limited or no access to banking systems. Cryptocurrencies could solve this problem by spreading digital commerce around the world, allowing anyone with a mobile phone to make and receive payments. Many more people have access to mobile phones than to bank accounts. In fact, more people own cellphones than toilets, worldwide.
Related to this, cryptocurrency transactions can transcend borders quickly and efficiently. Sending money internationally via traditional banking channels can be costly, time-consuming, and complex. Further, instant cross-border transactions allow charitable organizations to place funds quickly where needed, avoiding red tape. Another significant potential benefit is the elimination of excessive money-printing, which can result in rapid inflation.
For instance, when a country such as Iran or Venezuela prints too much money, the value of its currency plummets, inflation soars and people become unable to afford basic goods and services. By contrast, most cryptocurrencies have only a limited number of coins. When all of those coins are in circulation, it’s really hard for a central entity or company behind the blockchain to simply create more coins to add to the supply. This leads to deflation, or a more valuable asset over time. The potential positive and transformative uses of cryptocurrency and the blockchain are breathtaking.
But there is also concern about potential downsides, such as extreme energy use and environmental effects, which we’ll examine further.
What is so special about Blockchain? How does it work? What are its main use cases?
Ethereum 2.0 energy consumption is significantly reduced due to the move from proof of work to proof of stake.
What’s the difference between proof-of-work cryptocurrencies, like Bitcoin, and proof-of-stake cryptocurrencies, like Tezos? A lot. We’ll be discussing the POW vs POS blockchain models, and how, with POS, holders can earn “interest” aka staking rewards.
There is only one state of truth in a blockchain. But how can we make sure the state of truth doesn’t get tampered with? Consensus algorithms are protocols that nodes use to agree with each other on the one and only state of truth in the blockchain. In this video, we explain to you the definition of consensus algorithms and how they work. In this video, we answer:
– What is the consensus algorithm?
– What are the benefits and what are the limitations?
– What types of consensus algorithms are available?
– What are the best options?
It also introduces Proof of Participation, vs Proof of Work and Proof of Stake.