New algorithm in Ethereum blockchain drastically reduced energy consumption, but killed cryptocurrency mining

It's happened. Ethereum has finally switched to the Proof-of-Stake model, which has significantly reduced the amount of energy consumption.

Here's What We Know

The transition to the new model began in 2016. Ordinary network users will not feel any changes, but cryptocurrency miners can sell video cards on message boards, because Proof-of-Stake involves confirmation of transactions not by miners, but by ETH cryptocurrency holders.

The debut version of the Proof-of-Stake subnetwork was launched two years ago and was called Beacon Chain. It was used as a testbed to set up validators. These are members of the Ethereum network who left a pledge of at least 32 ETH by transferring funds to a service address where they are not allowed to sell or buy them.

Proof-of-Stake has critics. They argue that switching to the new model won't change anything. If previously hashreading was dominated by machines from three pools, now a third of the validators share will belong to the Lido community and as much to the largest cryptocurrency exchanges (Binance, Kraken and Coinbase).

The transition to Proof-of-Stake should reduce Ethereum's power consumption by about 99.9%. To make it clearer, imagine the whole of Finland being disconnected from the global power grid.

Source: Coindesk