The Environmental Debate of Crypto: Part 2
Quick Take
- Ethereum, the second-largest crypto by market capitalization, currently uses a Proof-of-Work consensus mechanism similar to Bitcoin
- This means that the same concerns raised previously about Bitcoin mining are also relatively applicable to Ethereum mining, albeit to a lesser extent
- Ethereum is migrating to a Proof-of-Stake consensus model which is supposed to use 99.95% less energy than the current Proof-of-Work model
- There are many other protocols with different consensus models that are significantly more energy-efficient than Bitcoin and Ethereum today, though they have other trade-offs
- Crypto and blockchain can possibly lead the way to a sustainable development of technology
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Author: Arnold Toh
