Ethereum Blockchain Upgrade to Cut Energy Use

A software upgrade to the Ethereum blockchain is expected to slash its huge energy consumption by 99.95 percent this week.

The upgrade, known as the "Merge," will mark a radical change to how transactions on the Ethereum blockchain occur and ether tokens are created. According to the Ethereum Foundation, a body which acts as a spokesperson for the network, the new system will consume 99.95% less energy.

The exact timing for the Merge is unknown, but Google and other sites tracking the blockchain predict it would take place in the early hours of Thursday. The Ethereum Foundation has said it will take place on Sept. 10-20. The event has been delayed several times previously.

If successful, Ethereum will move from a proof of work" system - in which computers validate transactions by solving complex mathematical problems - to a "proof of stake" protocol, in which individuals and companies act as validators, using their ether as collateral, in a bid to win fresh tokens.