2021-06-23

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Ethereum will cease to extract on video cards not earlier than 2022 – the deficit will end soon

2 min read

Ethereum Blockchain is now under the transition to Ethereum 2.0 version, which implies the refusal of mining based on it cryptocurrency in favor of their storage (storage). It might return the video card market to normal. But the co-founder Ethereum Vitalik Buterin (Vitalik Buterin) recently stated that the transition expected by many will take place not earlier than 2022. So the video card at normal prices will soon appear.

Cryptonewsz.com

In short, now the EtherEUM blockchain works according to the Proof of Work (POW) method or “Proof of the work performed”. With this method, it is necessary that the system can make heavy mathematical calculations to confirm the validity of the transaction. It is for these calculations that miners and receive their remuneration. In turn, Ethereum 2.0 suggests the approach of Proof of Stake (POS) or “Proof of the share of possession”, with which the rewards (new tokens) are not allowed for the signature of transactions not miners, but validators already possess a certain amount of cryptocurrency in the wallet. Who has more assets, the new tokens appear more. A kind of bank deposit is only better.

The advantage of POS is that with this approach, there is no need for huge computing capacities. And this, in turn, means a significant increase in the environmental friendliness of cryptocurrency. After all, now mining Bitcoin, Ethereum and other cryptocurrency consumes extremely plenty of electricity, which is not the best way to affect ecology. In addition, the transition to the POS along with the other in Ethereum 2.0 changes provide a multiple increase in the speed of the blockchain transaction.

Buderin, speaking recently at a technological conference in Hong Kong, said that the transition of Ethereum from POW to POS was unlikely to occur earlier than 2022. So far, the main obstacle to the way to fully update Ethereum is not technical aspects, but people. In particular, the co-founder Ethereum noted that in the Ethereum team there are many conflicts regarding the future of this platform. At the moment, Biderin is the only one who remains a member of the initial team.

Immediately add that many miners and investors are also afraid of the transition from the extraction of “Ether” to its storage, surviving that the price of cryptocurrencies collapses. However, the volume of deposits in Ethereum 2.0 is growing steadily, and has already reached almost 5% of the volume of all Ethereum coins or almost 5 million tokenes.

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