After numerous delays, Ethereum might finally be close to phasing out GPU-based mining.
Ethereum co-founder Vitalik Buterin today said the cryptocurrency is aiming to transition from its traditional mining model to a “Proof-of-Stake” algorithm later this summer, likely in August.
“We’ve been working on Proof-of-Stake almost seven years now, but finally all of that work is coming together,” he said at the ETH Shanghai Web 3.0 Developer Summit.
Ethereum mining has taken some of the blame for the great PC graphics card shortage, which only began to abate earlier this year. The thin supplies led to skyrocketing prices for GPUs and rampant scalping across the market.
However, the mining should come to an end once Ethereum switches to Proof-of-Stake, which nixes the need to rely on energy-intensive GPUs to maintain the cryptocurrency’s blockchain. Once the transition occurs, Ethereum is expected to cut its energy costs by as much as 99.5%.
Of course, long-time Ethereum watchers might be rolling their eyes at Buterin’s announcement. Developers behind the cryptocurrency have been promising a transition to Proof-of-Stake for years, only to delay its implementation over and over again. In his comments on Friday, Buterin acknowledged it’s possible Proof-of-Stake could be derailed again if an error pops up.
“There is always the risk of problems, there is always the risk of delays,” he said. “And so September is possible, and October is maybe possible as well. But The Merge is, at this point, looking like very close to happening. So Ethereum will finally become a proof-of-stake network.”
If Proof-of-Stake does occur on time, then this could help free up demand for GPUs right as Nvidia and AMD are expected to release next-generation graphics cards. Still, it’s possible miners could shift to another cryptocurrency once Ethereum transitions to Proof-of-Stake. One Ethereum miner told PCMag on Thursday he’s already been preparing by learning to mine other coins with his existing supply of GPUs.
In the meantime, Buterin said the developers of the cryptocurrency are rolling out a Proof-of-Stake model on an Ethereum test network on June 8. “So this will be a major test, larger than any of the tests that we’ve done before. Taking a large existing test network with many applications in Proof-of-Work, and moving it to Proof-of-Stake” he said. “And if everything goes well, then the likely plan is for The Merge to happen in the summer.”