Key Takeaways:
- Proof of stake has been considered a significant technology breakthrough by MIT Technology.
- POS will help cut down the amount of power consumption used by proof-of-work.
- Ethereum is also planning its transition.
MIT Technology Review has published a blog sharing the top 10 breakthrough technologies for 2022. Proof Of Stake or POS has made a list and is at rank 6.
Blockchains facilitates the functioning of cryptocurrencies. They are nothing but digital ledgers that ensure the security of transactions from cheats, fraudsters, and hacks. Bitcoin and Ethereum are doing the same job but by using proof-of-work algorithms. To achieve the right to verify any new block of transactions, miners have to solve cryptographic puzzles. This process takes up a large amount of computing power and, in turn, electricity.
The buzz regarding cryptocurrencies, especially Bitcoin, using large quantities of electricity has been going around for a while. Last year, the digital currency (Bitcoin) network surpassed the general energy budget of Finland by consuming 100 terawatt-hours.
Thus, as a solution to this, Proof of stake can be used as an alternative. It will help build a similar network but without much power consumption. If this transition gets successful, Ethereum will also transform itself in the earlier half of this year. Energy cut down by 99.5% has been predicted using this technology.
