Ethereum’s transition positively received by many star environmentalist adepts
In the famous Star Trek saga, Admiral James T. William Shatner, the famous Canadian artist who played Kirk, Express Support for Ethereum and congratulated Vitalik Buterin, the founder of the blockchain, on the event. Specifically, in his address, Shatner emphasized the environmental benefits of abandoning proof of work consent and switching to proof of stake.
As noted by many studies and, in particular, by analysts of the World Economic Forum, the energy consumption of Ethereum mining should decrease by 99.5% as a result of the update. Moreover, the rejection of PoW should theoretically improve the position of ETH in the view of institutional investors who have restrictions on transactions with PoW cryptocurrencies.
Ethereum’s new headache
Nevertheless, despite the fairly positive results of the transition, Vitalik’s project at the same time acquired new problems.
For example, in the first days after Sept. 15, it became known that more than 40% of the PoS nodes in the Ethereum network are controlled by only two addresses, which led many to question the current decentralization of the blockchain.
Given the current mood in the crypto space, the other trouble comes from where you’d expect it. It is about the statement of SEC Chairman Gary Gensler that indicated that ETH, which is now operating on PoS, can be treated as a security. Without mentioning Ethereum in vain, the official said in his argument about the PoS consensus that generating revenue by staking cryptocurrencies is suitable for the Howe test to determine whether an instrument is a security or not.
