Ethereum Gets Ready for a Major Upgrade

Ethereum, the second-largest cryptocurrency by market value, has run a final test before the long-awaited upgrade that will see the adoption of a proof-of-stake model for its network instead of the existing proof-of-work method.

This upgrade has been described by many as one of the most important events in the history of crypto. Since its creation almost a decade ago, Ethereum has been mined through a so-called proof-of-work model, which demands huge amounts of energy. It involves complex math equations that mining machines are solving, thus, mining new coins. Bitcoin too, relies on a similar process.

Looking for a way to reduce the energy intensity of the network, Ethereum has been working to shift to a new model for securing the network called proof-of-stake. Rather than relying on mining, the new method requires users to leverage their existing cache of ether as a means to verify transactions and mint tokens. It uses far less power and is expected to translate into faster transactions.

Ansgar Dietrichs, a researcher with the Ethereum Foundation, called the recent rehearsal “another successful test.”