Ethereum blockchain completes major software upgrade to reduce energy usageThe upgrade, the 'Merge', will change how transactions on the Ethereum blockchain occur and how ether tokens, the second-largest crypto coin after bitcoin, are created
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Representation of Ethereum. Credit: Reuters Photo
A major software upgrade to the Ethereum blockchain aimed at drastically reducing its energy usage has been completed, Vitalik Buterin, Ethereum inventor and co-founder tweeted on Thursday.
The upgrade, known as the "Merge", will change how transactions on the Ethereum blockchain occur and how ether tokens, the second-largest crypto coin after bitcoin, are created.
Under the change, Ethereum will move from a "proof of work" system, in which energy-hungry computers validate transactions by solving complex maths problems, to a "proof of stake" system, where individuals and companies act as validators, using their ether as collateral, to win newly created tokens.