Ethereum Mining as we Know It will become “Obselete” By December


In other words, this is what makes cryptocurrencies decentralized, and this is what makes more traders trust it.

“Proof-of-stake” instead of “proof-of-work”

Nonetheless, mining cryptocurrencies and creating blocks on the blochain requires a massive amount of energy to power the computers and mining GPUs. Since computers perform complicated calculations, it results in massive energy consumption. This has brought criticism about energy shortages and carbon emissions.

Meanwhile, the Ethereum community believes that it’s time to transition proof-of-work to “proof-of-stake”. The new model requires users to use existing cache of ether to verify transactions and mint new tokens. In return, the amount of new coins created will be limited without consuming that much of energy.