Because PoS removes the need for miners to solve a computationally intense math problem, it is expected to be substantially more energy efficient. Once Ethereum moves to PoS, the electricity consumption is estimated to fall by 99.5%. It is estimated that Ethereum currently consumes about 0.5% of global electricity consumption per year вЂ“ about the same amount of electricity as the country of Sweden (104TWh). Moving the PoW model to PoS provides significant benefits that are discussed further below: Instead of miners competing to produce the next block by solving the computationally intensive math problem described above, a random process will select a validator to produce the next block. A validator is any entity that commits (stakes) 32 ETH (a ~$80,000 value as of May 10, 2022) to the network. This model is different from the PoW model in that validators (as opposed to miners) are responsible to produce the next block. This ensures the blockchain is secure and hard to compromise, as doing so would require more computing power than the rest of the network combined in order to be able to produce the longest blockchain.Д®thereum 2.0 will move to a Proof-of-Stake (PoS) consensus model. Miners build consensus around the longest chain, which is the chain that required the most electricity and computing power to create. The first miner to solve the problem produces the next block by validating all pending transactions and appending the block to the blockchain. Miners вЂ“ individuals and firms that perpetuate the blockchain вЂ“ expend electricity (work) to earn the privilege of creating a new вЂblockвЂ™ on the blockchain and are compensated in the form of ether, the native currency for Ethereum, for doing so. Phase 1: From Proof-of-Work to Proof-of-StakeД¬urrently, Ethereum 1.0 runs on a consensus model called Proof-of-Work (PoW). Phase 2 will introduce sharding, materially increasing the scalability of Ethereum, and is expected to be live in 2023. Phase 1 will move Ethereum to PoS and is expected to go live in Q3 2022. While both upgrades are technically part of Ethereum 2.0, these upgrades will occur in two phases. The two primary improvements that will be introduced by Ethereum 2.0 are: (i) a move to a Proof-of-Stake (PoS) consensus model (вЂњThe MergeвЂќ) and (ii) the introduction of shard chains. WhileВ the growth of Ethereum has been staggering scale, capacity and energy consumption are common criticisms of Ethereum 1.0 and are the issues Ethereum 2.0 is designed to address. The above examples are just some reasons why ETHвЂ™s market value is now second to only Bitcoin, rising from $42 million in August of 2015 to more than $237 billion today. $13.6 billion in NFT trading volume in 2021 Ethereum 1.0 milestones:Д®thereum is home to the largest DeFi ecosystem compared to other chains with over $154 billion in stablecoins, $72 billion in capital committed (total value locked) and $620B+ in decentralized exchange volume in 2021Д¤,000 developers, the most among layer-1 blockchains Since its launch, Ethereum 1.0 unleashed innovation in smart contract applications, stablecoins, decentralized finance (DeFi), non-fungible tokens (NFTs) and more. The Ethereum upgrade, widely known as вЂEthereum 2.0вЂ™, has been in development for years to improve the sustainability, scalability, security and economics of Ethereum 1.0, which was launched in 2015.

Ethereum staking will consumption by