news hardware After Ethereum, can Bitcoin also become greener?
While Ethereum, the second cryptocurrency in the ranking, has just successfully completed its energy transition, many believe that Bitcoin, in turn, must become more ecological. If nothing speaks against it on paper, in practice the process seems to be much more delicate than with Ethereum.
Ethereum is getting greener
Since last Thursday, the cryptocurrency sector has witnessed a historic moment. Ethereum, the second cryptocurrency in terms of capitalization, now consumes 99% less energy.
All of this was made possible by the will of the founder and the user community surrounding cryptocurrency. With “The Merge” update, the Ethereum network switched from proof-of-work to proof-of-stake – resulting in the end of ETH mining through graphics cards or ASICs. Bitcoin’s little sister uses almost no electricity, which drastically reduces its greenhouse gas emissions.
This initiative has been welcomed by several environmental stakeholders who believe Ethereum operations need to become some kind of standard for other cryptocurrencies in the market. With that in mind, questions arise, particularly regarding the largest cryptocurrency in the ranking, namely: Bitcoin. Some are rightly wondering about Bitcoin’s ability to make the same transition.
Bitcoin influenced by Ethereum
For some time, Bitcoin has faced many critics who point out the energy consuming and polluting aspect of its network. In fact, the Bitcoin blockchain consumes an enormous amount of power through its proof-of-work validation system – using the processing power of graphics cards. Despite using more and more renewable energy, Bitcoin still raises concerns about its carbon footprint due to the increasing difficulty in mining it.
In the context of energy constraints and the greening of multiple sectors, Bitcoin is the target of multiple institutions. The White House recently published a report in which a group of experts is investigating the ban on Bitcoin mining in the United States.
Associations are also pushing Bitcoin to go green. Such is the case with the Environmental Working Group (EWG), an environmental advocacy group that has partnered with Greenpeace to push Bitcoin towards a similar transition to Ethereum. To support this initiative, the association launched a one million dollar advertising campaign.
The Change the Code, Not the Climate campaign will now amplify its efforts with $1 million in new online ads, and Greenpeace has launched a petition calling on Fidelity Investments to push Bitcoin and follow the example of To follow Ethereum by switching to a low-power protocol that will drastically reduce the cryptocurrency’s contribution to the climate crisis. the association EWG explains on its website.
Although nothing on paper prevents Bitcoin from moving to proof-of-stake, in reality the maneuver seems more difficult than for Ethereum.
Le Bitcoin au Proof-of-Stake (PoS)
Since Bitcoin does not have an active founder like Vitalik Buterin did for Ethereum, it is not dependent on a single entity. In this logic, users put the code created by creator Satoshi at the heart of the Bitcoin system.
If a developer wants to make a change to the protocol, Bitcoin must obtain consent from a majority of its users: the miner and the network node. For this reason, it is very difficult to achieve significant changes in Bitcoin. This argument speaks for the current system, which Bitcoin maximalists consider to be very secure.
In the event Bitcoin switched to proof-of-stake like Ethereum, a majority of investors and users could switch to something else as the system would be much more centralized – a paradox for the cryptocurrency that wants to be an alternative to the banking system and its influence.
For these various reasons, Bitcoin is unlikely to follow the same path as Ethereum. Increased use of renewable energy and less energy-intensive components appears to be a more viable option for the top-tier cryptocurrency.
About bitcoin
What is Bitcoin?
Bitcoin is primarily a payment network that allows its users to exchange peer-to-peer currencies. It is based on a digital currency called Bitcoin (BTC).
Thanks to blockchain* technology, Bitcoin offers the possibility of making payments in a decentralized manner, i.e. without third parties or trustworthy entities. With this in mind, Bitcoin was originally created as an alternative system to banks.
What is blockchain?
The blockchain (literally chain of blocks) is in a way the digitization of trust. Specifically, his code enables web users to exchange peer-to-peer values with a decentralized validation system. All actions performed on a blockchain are anonymous but transparent.
The mathematician Jean-Paul Delahaye explains that we can think of this large archive as “a very large notebook that anyone can read freely and freely, on which anyone can write, but which is not erasable and indestructible”.
Who Operates Bitcoin?
If the name behind Bitcoin is known to everyone, Satoshi Nakamoto, nobody really knows the identity of the creator. Anyway, it doesn’t matter since Satoshi has little power over his code.
In fact, Bitcoin is decentralized, meaning it is not dependent on any entity. Its network does not belong to anyone since it is the consensus of its users that allows its protocol to be modified. Developers can only make changes if miners and network nodes agree with the choice.
How does bitcoin work?
The Bitcoin network works thanks to its users. To conduct user transactions, Bitcoin ran its blockchain. Concretely, each miner puts their machines (graphics card, ASICs) in competition to solve an equation to validate the correctness of the block. Therefore, the Bitcoin network ensures that secure transactions are conducted, verified by multiple binary intermediaries.
How do I get Bitcoin?
Mining
Anyone using their hardware computing power (graphics card, ASICs) is paid in BTC according to their stake in the network.
exchange platforms
In addition to mining, bitcoin can be obtained on cryptocurrency exchange platforms in exchange for fiat currency (euro, dollar, etc.).
Where to store bitcoin?
Like cash, bitcoin can be stored in virtual purses, commonly called wallets. There are different types of wallets:
Hot wallet
Hot wallets are private key storage solutions that are connected to the internet. In software form, these portfolios can be applications, extensions, or even websites.
Cold wallet
Cold wallets are a safer alternative for cryptocurrencies. In fact, the private keys of these wallets are not stored online, making them much more difficult for a hacker to gain access to. These wallets usually look like a USB stick or even paper.
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