The Environmental Transformation of Ethereum

Ethereum has attracted attention for its environmental transformation. Before the 'Merge' in 2022, Ethereum used proof of work (PoW), which had extremely high energy consumption and sparked environmental controversies. It is estimated that the annual energy consumption during Ethereum's PoW period was equivalent to that of a medium-sized country. After the Merge, Ethereum shifted to proof of stake (PoS), reducing its energy consumption by about 99.95%, becoming a more sustainable blockchain. This change not only addressed environmental criticisms but also attracted more institutional investors focused on ESG (Environmental, Social, and Governance) standards. Additionally, under the PoS mechanism, users participate in network validation by staking ETH, which reduces energy waste caused by competitive computing power. Ethereum's environmental transformation has earned it broader social recognition and set an example of green development for other blockchain projects.