Technology

MIT lists Ethereum 2.0 as the 6th most innovative technology of 2022

Key facts:
  • MIT warns that Ethereum would solve the energy problem of cryptocurrencies.

  • Ethereum 2.0 will use 99.95% less energy when it transitions to proof of stake.

The MIT (Massachusetts Institute of Technology) has included Ethereum as one of the 10 most innovative technologies of 2022. This was determined due to the low energy it plans to use compared to other cryptocurrencies such as Bitcoin with the arrival of Ethereum 2.0.

This is because hehe Ethereum network seeks to make a transition in the first half of the year to what is known as “Ethereum 2.0”. If all goes well, this will allow its network to move beyond electricity-intensive proof-of-stake mining, a problem facing cryptocurrencies and of concern to environmentalists.

MIT estimates that this alternative method of securing digital currency could put an end to cryptocurrency’s power consumption problems.. He warns that proof-of-stake has been projected to reduce power usage by 99.95% on the Ethereum network.

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If successful, Ethereum’s proof-of-stake blockchain could lay the groundwork for broader adoption of the power-saving technology.

MIT in the report on the 10 most innovative technologies of 2022.

By comparison, MIT argues that other networks have contemplated a change, but appear to be taking a “wait and see” approach. He stated: “Cryptocurrencies like Bitcoin use large amounts of electricity. In 2021, the Bitcoin network consumed more than 100 terawatt hours, more than the typical annual energy budget of Finland.”

Currently, the development of the Bitcoin network does not plan to reduce its energy consumption. Although it is seen globally that most of its mining (58% according to the Bitcoin Mining Council) uses renewable energy methods to take care of the environment.

MIT maintains that Ethereum would provide a solution to the energy problem of cryptocurrencies. Source: Pok Rie / pexels.com

The exact date that Ethereum will make the final transition to proof of stake is not yet announced. Although in principle it is expected to be this year, Vitalik Buterin, the co-founder of Ethereum, has suggested that it could be postponed until 2023. However, MIT has listed it as the sixth most innovative technology with the aim of being released in 2022.

Bitcoin and its energy consumption

Bitcoin has received various accusations globally for its energy consumption. Even CriptoNoticias has reported that its ban in Europe has been encouraged for that reason. However, there are studies like the one by analyst Lyn Alden that discredit that.

Based on data from the University of Cambridge, Lyn Alden argues that the Bitcoin network uses less energy than Google, YouTube or Facebook. She estimates that Media Gives Sensational Reports on Bitcoin Energy Expendituresince it warns that its consumption only represents 0.1% of global energy expenditure.

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