News hardware Good news ! Ethereum miners will soon no longer need graphics cards
The second largest cryptocurrency behind Bitcoin is a delight for graphics card providers. In fact, for several years, Ethereum has established itself as the first choice for crypto miners. Therefore, this strong demand has partly contributed to the shortage of third generation Rtx graphics cards. However, these popular components for miners will soon no longer be needed to mine Ethereum.
The union of the event that will revolutionize Ethereum is coming
Ethereum users have been impatient (or not) with the idea of updating The Merge for several months. The second largest cryptocurrency, at the genesis of the non-fungible token phenomenon (NFT) among others, has finally announced the timing for the launch of the long-awaited update.
According to Ethereum estimates, the merger is expected to arrive in mid-September …
Behind this technical name lies a concept that will profoundly change the use of this cryptocurrency and impact on graphics card consumers. This innovation will move the Ethereum blockchain from proof-of-work (POW) to proof-of-stake (POS) …
Ethereum: what is proof-of-work?
Since its launch in 2015, Ethereum has operated much like Bitcoin for validating the exchange. Blockchain, the network architecture behind cryptocurrency, aims to digitize trust. To exercise this principle, it uses a validation system to allow exchanges from individual to individual, without going through an intermediary. For the moment, the validation of transactions on Ethereum takes place through proof of work (proof-of-work). It is precisely this system that uses graphics cards.
Specifically, to protect and operate its network, Ethereum competes different miners and their computing forces represented by machines (graphics cards, ASICs, etc.). This process aims to validate the blocks and thus reward the miners with ETH. For this reason, cryptocurrency uses an abundant amount of electricity. Furthermore, the blockchain is adapting to miners and they need more and more powerful hardware, creating a significant amount of e-waste since the emergence of cryptocurrencies. For these reasons, cryptocurrencies are often singled out for their polluting aspect.
However Ethereum has the solution to drastically reduce the greenhouse gas emissions of its blockchain: the proof-of-stake.
What is proof-of-stake?
Proof-of-stake is a more eco-responsible alternative to proof-of-work. This system replaces the mechanism based on computational strength with another, based on the active use of its treasury. Therefore, the proof of participation allows the owners of the asset in question (in this case Ethereum) to use their capital, instead of a graphics card, in the validation of the blocks. Precisely, using this system, an individual will be able to undermine Ethereum by putting their ETH into play.
This good news for gamers is also good news for the ecosystem as proof of stake (PoS) consensus is rightly considered more environmentally friendly. However, it could be that Ethereum miners switch to another proof-of-work cryptocurrency like Ethereum Classic, to be profitable at the end of the month.