The shedding of Ethereum’s energy-based proof-of-work (PoW) system is expected to witness Ether (ETH) get into the institutional world as has been the opinion of fund managers and co-founders, according to Cointelegraph.
As per insights from Cointelegraph, on September 15, Ethereum blockchain switched to a proof-of-stake (PoS) consensus algorithm, which is anticipated to reduce energy consumption used by the network by reportedly 99.95%, as stated by the Ethereum foundation. Due to the upgrade, it ended the need for the Ethereum network to have reliance on miners and mining hardware for validation of transactions and building new blocks.
On the basis of information by Cointelegraph, through a statement, Charlie Karaboga, co-founder and CEO, Block Earner, an Australian financial technology (fintech) company, said that the network’s transition to PoS has the potential to make the future of money to be internet-based. “The settlement layer that everyone will accept and trust — especially when the spotlight is shining than ever on the issue of sustainability in crypto mining,” Karaboga added. Markus Thielen, chief investment officer, IDEG, a digital asset manager, mentioned that discussions have taken place over sovereign wealth funds and central banks with the aim of building their digital asset portfolios, but votes have gone against direct investment on the grounds of energy concerns.
“While demand has been strong, the missing link has been an underlying zero-emissions, financial infrastructure. With Ethereum moving to PoS, this solves this last pillar of concern,” Thielen said.
Moreover, Cointelegraph noted that Henrik Andersson of Apollo believes that 99.95% energy consumption cut on Ethereum would enable the improvement of ETH’s ESG score, to make it appropriate for long-term investors. Jason Yanowitz, co-founder, Blockworks, told his 92,000 followers that “Green ETH” will help benefit cryptocurrencies. Furthermore, Yanowitz added that the most important trait of the Merge is that Ethereum wil reportedly become environment-friendly, which will be appealing for organisations who intend to comply with ESG mandates.
(With insights from Cointelegraph)