Why switch from Proof-of-Work to Proof-of-Stake | ETHStaker Ethereum Validator Hardware Shopping

Transcript

one thing i would like to oh i'll go ahead you first i was just going to kind of zoom out the question i'm going to pose here is slightly outside of the the shopping uh hardware specific question here but i think it's we'll tie it in and that is uh just an observance right so we're talking about best hardware for solo staking on ethereum but let's look at the range here we're talking about raspberry pi's we're talking about uh laptop hardware uh consumer grade towers to enterprise servers how is it that ethereum can handle that range isn't isn't it something you know isn't uh this like mining huge warehouses full of gpus like

how how is uh ethereum have this flexibility where there's range in uh in in into the world of solo staking and why would that be valuable and i'm thinking of like the nft world on one of the digs in terms of like uh the the sort of narrative within cryptocurrency is that this is bad for the environment this is consuming way too much power in electricity so maybe we can kind of touch on the the spectrum here that ethereum brings to the table and solving for that problem sure and that's actually i've actually heard this and i i you know being so deep in the tech i found it surprising

at first but you're 100 right the person said i'm really interested in nfts but i know they're bad for the environment and so nft such as tokens they're good or bad or not for the environment depending on the underlying blockchain right so super you want to take it what is proof of stake and why does it take less energy yeah i got excited when i realized hey this is a setup um so when ethereum was released in 2015 it mined with um with an algorithm that that's specific well it's not specific it's it benefits from massively parallel processing and so in the beginning that was done with cpus and now it's done with powerful gpus and so the the current ethereum chain what we

call the proof of work chain is powered by millions of gpus all around the world it's one of the reasons gamers hate uh cryptocurrency because um cryptocurrency enthusiasts buy up gpus at outrageous prices and prevent people from using them in their gaming systems they use a ton of electricity when i mined a bitcoin 2011 when i mined uh ethereum in the beginning i ran my gpus as hard and as hot as i could um and closed my eyes about the power bill things are different now um we recognize the impact that cryptocurrency can have on the environment um and we recognize that if ethereum is going to be a good

global citizen it has to change um and uh it it was actually part of vitalik's original roadmap in 2014 you described it as serenity it's the switch to proof of stake and rather than building blocks by entering this kind of contest with other gpus it's now a selected a selection process for people who hold 32 ether and so the benefit of this is that we can run a much larger network and only use uh 100th of the power that we're currently using on the ethereum proof of work chain uh

and it's actually less than one hundredth that's like one ten thousands that's the exaggeration itself it is it is infinitesimally smaller and so this is going to allow ethereum to be a good uh global citizen as we provide a valuable service and i i don't i don't want to slander any other chain but um this this kind of is in contrast to other chains who um are burning energy to make money uh it was how we started uh it's not something that i'm proud of it's not something that i think we should continue the good news is um ethereum is is changing to be a better global

citizen and i think in time people will recognize that and value us for it offset bucks yeah so 99.5 at least reduction in energy use right hopefully still this year um so if you're in the market for a gaming gpu um wait a few more months there should be a flood of them in the market we kind of know historically um when uh gpu mining opportunities disappear that uh other gpu mining opportunities appear maybe we hope that um that we're kind of setting a standard for um again good global citizenship because

the the same gpus in a gamers box aren't aren't burning the same kind of electricity that they're burning in a minor farm in a mining farm they're running at 110 percent 24 hours a day seven days a week and never stop until they die and then you start them again and let them die again but if they're in a a gamer's box they're only running 18 hours a day and so that was a joke and so it's it's much better for those gpus to be in the hands of gamers than in the hands of miners all right then