Ethereum blockchain slashes energy use with ‘Merge’ software upgrade

The Ethereum blockchain has undergone a major software upgrade, drastically reducing its energy usage, its inventor and co-founder tweeted on Thursday.

The new system will use 99.95% less energy, according to the Ethereum Foundation. The upgrade, which changes how transactions occur and how ether tokens are created, could give Ethereum a major advantage as it seeks to surpass rival blockchain bitcoin.

“We believe this is a significant moment that will lead to ETH outperforming the broader crypto market for some time,” said Richard Usher, head of over-the-counter trading at London-based crypto firm BCB Group.