Read on Twitter
1/ we have new participants entering #Ethereum, first from #DeFi, but increasingly from #NFTs
many highlight concerns on energy consumption from Proof of Work blockchains like #Ethereum & #Bitcoin
let's talk about it, and how we'll move past it in #Ethereum Proof of Stake
many highlight concerns on energy consumption from Proof of Work blockchains like #Ethereum & #Bitcoin
let's talk about it, and how we'll move past it in #Ethereum Proof of Stake
2/ first, it takes a tremendous amount of energy to secure a Proof of Work (PoW) blockchain
PoW blockchains are secured by computers (mostly graphics cards and specialized hardware known as "ASICS") from "miners," solving a work-intensive math problem for every block produced
PoW blockchains are secured by computers (mostly graphics cards and specialized hardware known as "ASICS") from "miners," solving a work-intensive math problem for every block produced
3/ the total "miner" contribution of this energy/computational power is known as "hashrate"
the "winning" miner who solves each new math problem first gets to produce the next block, and receives a block reward (in ETH, BTC, etc.) and any fees paid by users within that block
the "winning" miner who solves each new math problem first gets to produce the next block, and receives a block reward (in ETH, BTC, etc.) and any fees paid by users within that block
4/ to be most secure, you want as much hashrate as possible from as many sources as possible
in PoW, the hardware & electricity become something miners "put at stake" in PoW
this ensures honest behavior and is critical for the operation of a decentralized PoW network
in PoW, the hardware & electricity become something miners "put at stake" in PoW
this ensures honest behavior and is critical for the operation of a decentralized PoW network
5/ if they are found to have been dishonest in that block production, the network will revert their block and the miner will lose their block reward- in effect wasting their electricity
this creates an important financial incentive for honest behavior
this creates an important financial incentive for honest behavior
6/ we can debate if this energy for PoW mining is "wasted" (as it is used for a productive purpose)
but we may agree that it is sub-optimal, and perhaps there is a better way
enter Proof of Stake- the upgrade which will make #Ethereum green
but we may agree that it is sub-optimal, and perhaps there is a better way
enter Proof of Stake- the upgrade which will make #Ethereum green
7/ in Ethereum 2.0 (eth2), the Proof of Stake (PoS) upgrade for #Ethereum,
rather than staking electricity to produce a block, block producers instead stake their $ETH
this shifts the security model from energy expenditure to collateral-based economic security
rather than staking electricity to produce a block, block producers instead stake their $ETH
this shifts the security model from energy expenditure to collateral-based economic security
8/ yes, computers will still secure the network, BUT there will be no more complex math problems to solve, and no electricity to be staked
thousands of computers, using the power of a consumer laptop, can get the job done- versus energy-intensive industrial mining rigs
thousands of computers, using the power of a consumer laptop, can get the job done- versus energy-intensive industrial mining rigs
9/ the economic incentive for honest block production is the staked $ETH each block producer must lock
each validating node must put up 32 $ETH as "stake"
if they misbehave, those holdings can be "slashed"
this may prove to be even more effective at securing Ethereum than PoW
each validating node must put up 32 $ETH as "stake"
if they misbehave, those holdings can be "slashed"
this may prove to be even more effective at securing Ethereum than PoW
10/ so while #Ethereum PoW energy consumption remains high, the entire community is laser focused on transitioning to eth2 / full Proof of Stake
when will this happen? well, the first part of eth2 is already live, with 3.3 million $ETH committed / "bonded" to staking nodes
when will this happen? well, the first part of eth2 is already live, with 3.3 million $ETH committed / "bonded" to staking nodes
11/ we expect that the merge/transition to Proof of Stake will happen within the next 1 to 2 years
so no, while current PoW energy consumption is not ideal, we will fix it
and our community & brightest minds won't rest until #Ethereum is a green blockchain
so no, while current PoW energy consumption is not ideal, we will fix it
and our community & brightest minds won't rest until #Ethereum is a green blockchain
12/ if you want to learn more about #Ethereum's transition to Proof of Stake, these articles may be useful:
https://www.coindesk.com/proof-of-stake https://spectrum.ieee.org/computing/networks/ethereum-plans-to-cut-its-absurd-energy-consumption-by-99-percent
https://www.coindesk.com/proof-of-stake https://spectrum.ieee.org/computing/networks/ethereum-plans-to-cut-its-absurd-energy-consumption-by-99-percent
tagging a few people here who may find this thread informative on how #Ethereum is working to eliminate energy consumption from mining by transitioning to Proof of Stake:@saradietschy @dmitricherniak @ArtOnBlockchain @mattdesl @memotv @RAC
please share w/ others
