The Massachusetts Institute of Technology (MIT) releases a list of top 10 breakthrough technologies every year. This list contains the technologies that can bring a paradigm shift in their respective fields. Proof of stake consensus algorithm of Ethereum has found a spot in this year’s breakthrough technology list. Ethereum’s PoS has bagged 6th place in the list of top 10 breakthrough technologies of 2022 published on MIT technology review. Some other notable technological innovations that are included in the list released by MIT are AI technology for Protein folding, a long-running battery and Covid variant tracking technology.
Why is Ethereum’s PoS a breakthrough technology?
Blockchain networks require digital ledgers to make the transactions safe and eliminate all sorts of errors from the system. The largest cryptocurrency token, BTC and some other tokens ensure this by proof-of-work (PoW). PoW requires crypto mining, which consumes a colossal amount of energy. Due to the energy-intensive nature of crypto mining, the cryptocurrency market is being subjected to numerous controversies.
The second-largest cryptocurrency token, Ethereum has brought its revolutionary ‘proof-of-stake’ algorithm. This technology will lessen the energy usage of the blockchain network by a massive 99.95%.
Apart from being energy-intensive, crypto token mining also creates a lot of e-waste. The application of PoS technology will make the blockchain ecosystem energy efficient and will reduce the environmental degradation caused by it.
Ethereum started working on its transition from proof of work to the revolutionary proof of stake algorithm towards the end of 2020. The shift to Ethereum2.0 (Consensus Layer) will be completed within the first half of 2022.
Even though some blockchain networks are already using the PoS algorithm, its adoption by the 2nd-largest crypto coin will inspire many others to follow this path.