‘Ethereum 2.0’ PoS Blockchain Aims to Cut Energy Use by 99%

Ethereum not only hopes to maintain its position as one of the world’s largest cryptocurrencies but also to achieve supremacy by becoming more energy efficient. Ethereum leadership plans to accomplish this objective by minimizing blockchain energy consumption by 99 percent.


‘Ethereum 2.0’ PoS Blockchain Being Built From Scratch

Vitalik Buterin, inventor and co-founder of Ethereum, started 2019 by regaining Ethereum’s position as the second largest cryptocurrency with a market capitalization of over USD 15.5 billion.

However, Buterin admits that Ethereum mining now purportedly consumes more electricity than Iceland. Thus, to sustain or enhance its competitive advantage, Ethereum is aiming to reduce energy consumption by scraping its blockchain based on proof-of-work (PoW) and instead building an entirely new blockchain based on the proof-of-stake (PoS) algorithm.

Vitalik Buterin

In this regard, Vitalik says, “latest ETH update should complete transactions using just 1% of the energy consumed today by replacing PoW with PoS.”

Testnet in 2019? Don’t Hold Your Breath

Peter Fairley, a contributor editor for Spectrum IEEE, writes that energy reduction has been part of Buterin’s vision from the start, concurring that PoW consumes energy excessively.

Buterin envisions that future blockchains will be based on PoS and sharding. Sharding is a database-partitioning technique that involves separating huge databases into smaller, faster and more manageable components, known as data shards.

On December 10, 2018, Buterin tweeted:

Blockchains of the future with proof of stake and sharding will be thousands of times more efficient, and so the efficiency sacrifices of putting things on a chain will become more and more acceptable.

The Ethereum devs decided on the two-blockchain solution in June 2018 dubbed ‘Ethereum 2.0.’ Ethereum contributor Paul Hauner, a co-founder of Australian cybersecurity and blockchain-development firm Sigma Prime, and heads the development of the ‘Lighthouse’ Ethereum 2.0 software client, that uses the Rust code. He expects this app and others to be running PoS on testnets in early 2019.

But due to multiple delays in the past and the complexity of the task at hand, may expect this new radical shift to Ethereum 2.0 to take time and it’ll likely not see the light of day in 2019.

“In October 2017, when mining time had already nearly doubled to 30 seconds, the Ethereum team reset the clock, delaying PoW’s doomsday by about 12 months,” Fairley notes. “And they will likely hit snooze again shortly.”

Weiss Ratings echoed this sentiment, saying they won’t be holding their breath, at least not in 2019.

Do you think a PoS-based blockchain will be capable of reducing energy consumption costs by about 99 percent? Let us know in the comments below.

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Source: Blockchain

Vitalik Buterin: Bitcoin is ‘Genuinely Cool Tech,’ Bitcoin SV Is ‘Pure Dumpster Fire’

dumpster fire

Bitcoin Cash ‘Satoshi’s Vision’ (BSV), the new hard fork of Bitcoin Cash (BCH), is a “pure dumpster fire,” Ethereum co-founder Vitalik Buterin has said.


Cool Vs. Dumpster Hot Air

In a Twitter discussion with cryptocurrency commentator and entrepreneur Tuur Demeester December 25, Buterin debated the pros and cons of two algorithms used by many cryptocurrencies: Proof-of-Work (PoW) and Proof-of-Stake (PoS).

As part of its long-term upgrade schedule, Ethereum plans to transfer from PoW to PoS, with Buterin saying he “doesn’t believe” in the former.

Vitalik Buterin

BSV, which plans to use giant block sizes to solve scaling difficulties ‘on chain,’ has faced technical and publicity hurdles since it came into being on November 15.

The altcoin unwittingly became collateral damage from the debate after an advocate requested Buterin’s opinion on it.

The user had claimed the scaling plans from Bitcoin (BTC) developers – specifically ‘off-chain’ scaling via the Lightning Network, was a “joke.”

Buterin slickly disagreed.

“I have my disagreements with the bitcoin roadmap, PoW, etc but they’re trying to do something that’s genuinely cool tech,” he responded.

“BSV is a pure dumpster fire.”

Traders Stay Warm This Christmas

In a curious move, the BSV proponent did not criticize Buterin for his negative perspective, something which has become commonplace among the coin’s better-known activists.

Craig Wright, the self-proclaimed ‘Satoshi Nakamoto,’ has continued to earn a notorious reputation for his lack of tolerance of BSV 00 naysayers.

As Bitcoinist reported, an apparent spat with BCH advocate Roger Ver prior to the hard fork saw Wright pen an email calling Ver his “enemy.”

“Have a nice life. You will now discover me when pissed off,” he wrote.

BCH, BSV and ETH have meanwhile all staged something of an unlikely recovery over the past week. BCH had led the rally, more than doubling in value to hit more than $200 before correcting nearer to $170. ETH managed $160 from a low of $73.

Do you agree with Vitalik Buterin’s comments? Let us know in the comments below!


Images courtesy of Shutterstock, Bitcoinist archives

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Source: Blockchain

Ethereum Price Analysis: Ether Burns to a Crisp

ethereum price eth price fire

Ethereum has turned into an unattended dumpster fire. Let’s take a look at the Ethereum price analysis and see what it will take to turn the price around.


Ethereum Price: Market Overview

2018 has been a rough year for Ethereum price 00 and at the moment it doesn’t look like the situation will improve. Of the top 5 cryptocurrencies, ETH price disintegration has been nothing short of harrowing and with the ICO market being declared dead by a growing number of analysts.

Meanwhile, the SEC in constant pursuit of what it deems to be unregistered securities sales and illegal marketing has put a ton of pressure keeping it from rebounding from its current lows.

ETH-USD Shorts

Additional pressure is also coming from a record high number of shorts (400,000) betting against an Ether recovery and this seems to be pinning ETH price below $95. A break above $95 – $100 could cause some shorts to cover and the price could extend to $115 to $125.

However, it seems a strong Bitcoin led recovery is the only catalyst that would set this sort of action into motion.

ETH-USD Longs

Here is the ETH/USD longs chart.

4 HR Chart

ETH had been trading in a tightening range of $83 to $103 but a decline in volume and pattern of lower highs hinted that ETH price would break down over the short-term.

ETH under $85 is a problem and below $83 – $80 could be catastrophic. The pattern of lower highs remains and ETH’s oversold bounces on the Stoch and RSI are diminishing in the amount of lost ground reclaimed.

Longs have 300,000 contracts open and a drop below $80 could accelerate ETH losses and the considerable support gap below $80 could lead to ETH price dropping to $60, if not to $41.

1HR Chart

Ethereum price dropped supports at $89, $87.60, $85.90. Now $83 – $80 appears to be the last support before a steep fall. Ambitious traders should either wait patiently for a bullish pattern to present itself or attempt to catch and oversold bounce if ETH drops below $83.

But setting a tight stop loss would be wise in order to protect against the possibility of a steep decline below $80.

[Disclaimer: The views expressed in this article are not intended as investment advice. Market data is provided by Bitfinex. The charts for analysis are provided by TradingView.]

Where do you think Ethereum price will go over the short-term? Share your thoughts in the comments below!


Images courtesy of Shutterstock, Trading View. Market data sourced from Coinbase and Bitfinex.

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Source: Blockchain