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Update Ethereum consensus mechanism (#1589)
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* Update Ethereum consensus mechanism

* Fix wording
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vastus authored Nov 17, 2023
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This means each time a transaction is processed a small amount of cryptocurrency is created, so the amount of cryptocurrency in circulation grows over time (of course some amount of tokens should be created to bootstrap the network, e. g. by using [ICO](https://www.investopedia.com/terms/i/initial-coin-offering-ico.asp)).

At a present day, two consensus mechanisms are commonly used:
- [Proof-of-work](https://www.investopedia.com/terms/p/proof-work.asp) - original consensus mechanism, which is used by Bitcoin and Ethereum. It’s highly criticized for its inefficiency - processing of new transactions requires “mining”, which is a highly computationally intensive process. Because of this, graphic cards became an endangered species. Another disadvantage - cost of transactions is very high and processing speed is also quite slow.
- [Proof-of-stake](https://www.investopedia.com/terms/p/proof-stake-pos.asp) - newer consensus mechanism, which doesn’t require significant processing power (and graphic cards). Processing of transactions is usually called “validation”. Newer chains, like NEAR, use it. Ethereum is also currently in a process of switching to this model. Transactions are usually much cheaper and processing speed is faster.
- [Proof-of-work](https://www.investopedia.com/terms/p/proof-work.asp) - original consensus mechanism, which is currently used by Bitcoin and was used by Ethereum. It’s highly criticized for its inefficiency - processing of new transactions requires “mining”, which is a highly computationally intensive process. Because of this, graphic cards became an endangered species. Another disadvantage - cost of transactions is very high and processing speed is also quite slow.
- [Proof-of-stake](https://www.investopedia.com/terms/p/proof-stake-pos.asp) - newer consensus mechanism, which doesn’t require significant processing power (and graphic cards). Processing of transactions is usually called “validation”. Newer chains, like NEAR, use it. Ethereum switched to Proof-of-stake (PoS) mechanism in September 2022. Transactions are usually much cheaper and processing speed is faster.

At this point, we should have enough knowledge to proceed to the next chapter - choosing the best blockchain to build dApps.

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