Info Ethereum Switches to "Proof of Stake"/PoS, GPU Mining is finally Dead !

Hiya guys,

It looks like after a long time there is some hope for the future when it comes to gaming GPU pricing, and stock availability. Miners and scalpers will no longer grab the next-gen high-end GPUs for Ethereum Mining, since Ethereum has now switched to "Proof of Stake"/PoS concept.

Popular cryptocurrency blockchain Ethereum has completed its long-awaited switch to proof-of-stake. That upgrade process, better known as ‘The Merge’, has been years in the making. According to the Ethereum Foundation, today’s transition reduces Ethereum’s energy consumption by 99.95%. Previously, the Ethereum blockchain relied on proof-of-work, a consensus mechanism that requires a lot of computational effort from all the decentralized nodes participating in the blockchain.

The proof-of-stake mechanism radically changes how the Ethereum blockchain works. It eliminates the need for mining new blocks as the network is now secured using staked ETH and validators.

Like mentioned before, NVIDIA Ada and AMD RDNA3 will not sell to Ethereum miners. Since the creators of Ethereum have switched over the popular crypto-currency's algorithm from proof-of-work, to proof-of-stake, miners will no longer spend GPU resources in competing to find the same blocks.

This effectively ends GPU-accelerated mining as Ethereum mining was the number-1 consumer of high-end GPUs through 2021. The switch-over happened as the total terminal difficulty/TTD surpassed 58,750,000,000T, with the last block having been found. With this move, global electricity consumption is expected to reduce by 0.2% (that's enough to power the world's top 5 cities).

The impact of this move on GPU sales to crypto-currency miners is expected to be profound. GPUs are no longer an economical way to mine Bitcoin, ASICs are; and Ethereum mining constituted the bulk of activity from GPU-accelerated mining farms.

This doesn't mean there aren't other crypto-currencies that rely on GPU-accelerated proof-of-work blockchain compute; but Ethereum had the highest market-cap among such currencies. Gamers have a reason to rejoice, as NVIDIA and AMD now have to sell high-end GPUs squarely on merits of gaming performance, power-draw, and graphics card pricing.



View: https://twitter.com/VitalikButerin/status/1570299062800510976

The idea was there from the start that Ethereum would eventually make the switch to proof-of-stake. But the transition was a complicated technical effort – an endeavor so risky that many doubted it would happen at all. The historic upgrade casts aside the miners who had previously driven the blockchain, with promises of massive environmental benefits.

Source:

Ethereum’s long-awaited switch to using less energy is here - The Verge
 

ASK THE COMMUNITY