Ethereum is the second most popular cryptocurrency on the market. Recently, the Ethereum network went through another update called Arrow Glacier. This update was supposed to delay the onset of the “difficulty bomb” to June 2022.
Ethereum Moving from PoW to PoS Mining
The latest Ethereum upgrade will reschedule the “difficulty bomb” to June 2022, which will eventually halt the coin’s mining. With this upgrade, Ethereum is moving from the Proof-of-Work to the Proof-of-Stake mining model.
However, ETH2 or Ethereum 2.0 is not a new currency — it’s the old Ethereum people know and use.
This shift will cut down the Ethereum network’s energy consumption by 99%. The PoS mining method that Ethereum will implement in 2022 means that the blockchain will verify transactions based on the amount of coins holders stake in the pool.
It will require less computing power since it doesn’t reach a consensus by having miners competing to solve one puzzle.
The new version of Ethereum will be more scalable, secure, and sustainable. At the same time, the mining of Ethereum won’t generate as much revenue as it does today.
At the moment, nodes still have to validate each transaction to keep the Ethereum blockchain running. The ETH2 will later implement sharding, meaning that the network will be divided into multiple segments and randomly assign nodes to a segment (shard).
This upgrade thus removes the need for each node to scan the entire chain, and it will speed up the transactions and reduce costs.