Ethereum’s upcoming ETH 2.0 upgrade could help reduce the blockchain’s energy consumption and will no longer devour “a country's worth of power,” according to Carl Beekhuizen, a researcher at the Ethereum Foundation.
“By my (very conservative) calculations, Ethereum will see a greater than ~99.95% reduction in energy use post-merge,” Beekhuizen wrote in a research report published yesterday.
By my (very conservative) calculations, Ethereum will see a greater than ~99.95% reduction in energy use post merge.
Taking the total number of validators, unique addresses, and the average energy consumed by hardware into account, the resulting figure was significantly lower than Ethereum’s current energy demands using the proof of work (PoW) consensus mechanism.
Comparing estimated power consumption between BTC, ETH (PoW), and ETH (PoS). Source: Ethereum Foundation
“In total, a Proof of StakeProof of Stake Ethereum, therefore, consumes something on the order of 2.62 megawatt. This is not on the scale of countries, provinces, or even cities, but that of a small town (around 2,100 American homes),” Beekhuizen wrote.
Ethereum upgrade on the horizon
Currently, Ethereum’s blockchain uses the same energy-hungry proof of work (PoW) consensus mechanism employed by Bitcoin. This will change soon, however, thanks to Ethereum 2.0. The ambitious multi-year upgrade will switch the network to a greener consensus mechanism called proof of stake (PoS).
This is because proof of stake relies on users locking up—or staking—Ethereum to support the production of new blocks instead of using energy-intensive mining rigs.
The long-awaited Ethereum 2.0 upgrade is near.
The multi-phased upgrade aims to improve the Ethereum network’s scalability and security through several changes to the network’s infrastructure—most notably, the switch from a proof-of-work (PoW) consensus mechanism to a proof-of-stake (PoS) model.
What is Ethereum 2.0?
Ethereum 2.0, also known as Eth2 or “Serenity,” is an upgrade to the Ethereum blockchain. The upgrade aims to enhance the speed, efficiency, and scalability of the Ethereum network...
In terms of energy required per transaction, ETH 2.0 uses the equivalent of “about 20 minutes of TV,” he added. By comparison, one transaction on PoW Ethereum requires the same amount of electricity that can be used to power a house for 2.8 days, while one Bitcoin transfer consumes “38 house-days worth.”
The first testnets for the post-merge Ethereum—when the blockchain fully transitions to ETH 2.0—were launched in late April. A hard date for the full launch, however, has been notoriously hard to pin down.
Still, Beekhuizen concluded that “Ethereum’s power-hungry days are numbered, and I hope that’s true for the rest of the industry too.”
Editor's note: This story was updated after publication to clarify that there more than 4 million ETH tokens currently staked in ETH 2.0, not $4 million worth of ETH.
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