The Ethereum network, the second largest digital currency in the world after Bitcoin, has completed the process of updating its systems in what is known as a “consolidation”, in a move aimed at reducing energy consumption.
Vitalik Buterin, co-founder of the Ethereum network, announced on Thursday via his Twitter account the completion of the merger, which reduces the energy consumption of the Ethereum network by 99.95%.
The process of updating the Ethereum network was called a “merger” because it involved merging the original Ethereum network with another network called “Beacon” which was running in parallel for two years to test the “Proof of Stake” system instead of the “Proof of Stake”. of Work “that Ethereum was working with – and others of cryptocurrency networks – which consumed a lot of energy and was the source of much criticism of the cryptocurrency industry.
What is the difference between Proof of Stake and Proof of Work?
The main difference between the two systems is how the network participants, who with PoS have become “auditors” rather than “miners” in the PoW system, how is this?
In the Proof of Work system, miners verify the validity of transactions by decoding complex mathematical equations, which require large amounts of power consumption as high-powered computers are used and in return they obtain new cryptocurrencies resulting from the mining process.
The proof-of-stake system makes network participants “auditors” of operations after mortgaging their Ethereum coins with a minimum of 32 coins. Penalties, including deduction from its committed balance, and even expulsion from the network if it is proven to be dishonest or negligent.
The audit process, unlike the mining process, does not require high-capacity computers, since personal computers can be used in them, and hence the supply of electricity.
The arrest of the inventor of “Luna” takes the digital currency by storm after a brief recovery
A South Korean court has issued an arrest warrant for the inventor of the digital currency Luna, Do Kwon, and five other Singapore residents, Reuters reported Wednesday.
The decision came after months of investigation, as the collapse of the Kwon and the other 5 stablecoins TeraUSD – which was pegged to the dollar and a sister currency called the Moon before its big drop triggered its release from the dollar – last May caused popularity rage in South Korea, as it lost global investors in the two currencies so they totaled more than $ 42 billion, crypto analytics firm Elliptic reported in May.
After news circulated of an arrest warrant for Kwon, the Luna coin (the new coin launched by the founder of Luna in an attempt to save the day after the collapse of the TerraUSD coin in May) and Luna Classic (the original coin which is collapsed in May and was renamed) strongly retreated, then on Luna Classic), ending a short-range excursion.
(Edited by: Amani Radwan, Editing: Maryam Abdelghani, contact [email protected])
#economic news
To read the article about iKON, click down here
To subscribe to our daily roundup of economic and political news, sign up down here
–
