Ethermine, the world’s largest ethereum mining pool provider by computing power, shut down its servers for miners after a major software upgrade to the ethereum blockchain, significantly reducing its energy usage.
steps followed EthereumThe much-anticipated software improvement of the company, called Merge, moved the most commonly used blockchain today from a proof of work consensus mechanism to a proof of stake.
It is no longer possible to mine Ether on the network, as the powerful graphic cards used to validate transaction data are being replaced with investors betting Ether. The validators will secure the Ethereum blockchain and validate the data on the network.
A few days after the merger, the company will begin automatic payments to its miners for any outstanding amounts. Ethermine also launched an Ethereum staking pool last month, where Ether holders will be able to deposit their coins and earn yields.
About one million people with computer equipment worth over $10 billion mined ether at one time.
According to the Ethereum Foundation, the new system will use 99.95% less energy. The upgrade, which changes how transactions take place and how Ether tokens are created, could give Ethereum a major advantage as it seeks to surpass rival blockchain Bitcoin.
Richard Usher, Head of Over-the-Counter Trading at London-based crypto firm BCB Group, said, “We believe this is an important moment for ETH to outperform the broader crypto market for some time. will inspire.”
Ether Mining: A Multi-Billion Dollar Industry
Ether mining has grown into a multi-billion dollar industry over the years. In this activity the miners competed against each other to solve math puzzles and earn a reward in tokens.
Mining pools such as Ethermine aggregate computing power from a group of miners to increase the chances of winning Ether before distributing the rewards among the miners. The company usually charges a fee for providing its services.
Most blockchains consume large amounts of energy and have come under fire from environmentalists and some investors. Before the software upgrade, a single transaction on Ethereum used as much power as an average American household in a week, according to researcher Digiconomist.
With the software upgrade, Ethereum has moved from a “proof of work” system, in which energy-hungry computers validate transactions by solving complex math problems, to a “proof of part” system, where individuals and Companies act as validators, using their ether as collateral to win newly created tokens.
“Happy merge all,” inventor Vitalik Buterin said in a tweet. “This is a big moment for the Ethereum ecosystem.”
Ethereum is the second most important blockchain after bitcoin, but it has faced criticism for burning through more power than New Zealand each year.
The cryptocurrency ether fell as much as 4% to $1,571, a move analysts usually put in a cautious mood for the riskier asset.
Ahead of the merger, investors bet that the upgrade will drive up the price of the Ether token. Ether is up nearly 85% from its June lows, outperforming larger rival Bitcoin’s 15% gain. Overall, however, the cryptocurrency has suffered this year, with both bitcoin and ether down around 55%.
Ethereum took market share from Bitcoin prior to the merger, and now accounts for nearly a fifth of the $1 trillion cryptocurrency market. Bitcoin’s share has fallen to 39.1% from this year’s peak of 47.5% in mid-June.
with agency input
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