Ethereum's Proof-of-Stake Revolution Cuts Energy Use by 99.95%

Proof of stake is a consensus mechanism that secures blockchains by requiring validators to lock cryptocurrency as collateral, replacing the energy-intensive puzzle-solving of proof of work with economic incentives and penalties.

The Ethereum network made the largest proof-of-stake transition in history in September 2022, cutting its energy use by an estimated 99.95% while enabling a path to future scaling upgrades.

Proof of stake predates crypto itself, as traditional finance has always understood that people with money on the line behave differently from those without it. The mechanism was first described in a 2012 Peercoin whitepaper and became the consensus mechanism of choice for virtually every major blockchain launched after 2020.