The price of GPUs has come down. And, things may not change. The event “The Merge”, which takes place between September 13 and 15, will transform the operating protocol of Ethereum. This less energy-intensive protocol no longer requires as many graphics cards.
Nvidia GPU prices have fallen this year, after several years of excess. As Nvidia, AMD, and Intel prepare to launch new graphics cards, current declines are expected to continue. In question ? ” The Merge of Ethereum will be introduced this Tuesday, September 13, 2022.
What is “The Merge”?
Ethereum, the most popular cryptocurrency in the world after Bitcoin, is going to experience a huge change this Tuesday, September 13.
The quick version: Ethereum will go from a system called ” proof of work(proof of work) to a system of “ proof of stake(proof of stake). This event is called “The Merge“, it is certainly one of the most important events of the year in the world of cryptocurrencies.
The longer version:theproof of workor PoW, was until now the main way to “undermineof Ethereum. Concretely, it is a protocol that makes it possible to validate the integrity of the blockchain and to create new blocks. It is in particular this system that makes the blockchain secure. To validate a new block, all miners had to solve very complex calculations performed mainly by graphics cards. This is one of the reasons behind the significant shortage that we have known since the start of the pandemic, as well as the excessive increase in the price of graphics cards.
This is a real problem for the graphics card market, between scarcity and excessive prices. It is also an environmental issue. This protocol gradually required massive energy investments; collectively this corresponds to a carbon footprint equivalent to that of a small country.
Theproof of stake, or PoS, is also a protocol that helps validate the integrity of the blockchain. Unlike theproof of work, it is based on trust. It is a method of processing transactions on the blockchain by proving the possession of a certain amount of virtual currency in order to be able to validate blocks. Thus, this protocol is much less voracious in terms of energy consumed. As Numerama explains, it will be necessary to stake 32 ETH (i.e. more than 50,000 euros today) in order to be able to “to participateand attempt to become a validator. In addition, the validators will be drawn at random and the cryptocurrencies put into play will be used to ensure the good behavior of the validators.
According to the Ethereum Foundation, this protocol is introduced to reduce Ethereum’s energy consumption by 99%. In the case of Ethereum, this would mean freeing up 0.1% of global electricity consumption.
Currently, Nvidia and AMD are trying to liquidate inventory before launching their new lines later this year. “The Mergecould end the excessive demand for GPUs, ahead of the arrival of AMD’s Radeon 7000 cards, Nvidia’s RTX 4000s and Intel’s Arc A models. Amid intensified inflation, weak demand, pandemic and supply chain throttling, graphics card makers are expected to face tough times in the coming months.
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