Ethereum Plans to Go Green with Proof of Stake | Crypto

Ethereum Plans to Go Green with Proof of Stake

* Cryptocurrencies work through blockchain technology, which is a new way of maintaining a ledger of time-ordered transactions.
* Blockchains operate without a central guardian, such as a bank, in charge of the ledger.
* Cryptocurrencies use either a proof of work or proof of stake system in order to make sure that no one is able to spend a cryptocurrency token more than once.
* Proof of work is the system used by Bitcoin and Ethereum today, which involves miners competing to be the first to come up with a solution and being rewarded with free cryptocurrency if other miners agree it works.
* Proof of stake is the system being adopted by Ethereum, which is a more simplified system that gives a group of people incentives to collaborate in order to secure the blockchain.
* Switching to proof of stake would cut Ethereums energy use by 99.9%.

 

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