At PC Gamer, we don't often dive into updates about specific cryptocurrency algorithms, but this could have a serious impact on our humble hobby. ethereum, the most popular crypto in GPU mining, and PC gaming have had a rocky relationship but that may be about to change.

The Ethereum Foundation has announced that Ethereum is considering moving to a proof-of-stake model within the next few months, which would bring significant changes to the way the cryptocurrency fundamentally operates.

Currently, Ethereum uses proof-of-work to transition transactions and generate new Ether, the currency used in the Ethereum network. The operation of proof-of-work requires as much computing power as Bitcoin, but whereas Bitcoin runs primarily on application-specific integrated circuits (ASICs), Ethereum runs almost exclusively on graphics cards.

Proof-of-stake reduces the GPU requirement. Instead, the network itself validates transactions (blocks) according to their stake in ethereum. The system remains secure because the global Ether wealth is already distributed among millions of people. [As a result, Proof-of-Stake will reduce the need for GPU mining, reduce the demand for cards, and reduce the power consumed from the limited resources of the earth. [Carl Beekhuizen of the Ethereum Foundation wrote in his blog, "Ethereum will complete the transition to Proof-of-Stake in the coming months. But now that the Beacon chain has been up and running for a few months, we can really dig into the numbers. We are excited to do new energy usage estimates to end the process of spending a country's worth of energy to reach a consensus.

The Beacon Chain is a system where the Ethereum network manages a proof-of-stake network. It is different from the mainnet blockchain currently used for proof-of-work. However, both effectively aim to create a secure network for verifying Ether transactions.

Ethereum has been eyeing the Proof-of-Stake concept for years. I remember talking about it during the last GPU shortage in 2017/2018, but so far nothing has come out that is truly game changing that will change the way Ether is mined. As such, Ethereum remains in a huge power shortage. Ethereum's demand for power is comparable to that of the country and continues to increase as the price rises. In the face of millions of people looking to make a quick buck, they realize that individual efforts such as recycling or biking to work are of no use.

It's really depressing stuff.

The foundation claims that if Proof-of-Stack succeeds, it could reduce Ethereum's electricity usage by up to 99.95%.

But what happens to all the miners if Proof-of-Stack inevitably happens?

Miners will close up store, sell their GPUs for a quick used deal, and get on with their lives. Or they move on to one of the many alternative cryptocurrencies that are still happily being mined.

There will continue to be cryptocurrencies that use the tried and true proof-of-work method.

However, these altcoins should still prove themselves profitable to see the river of graphics cards dry up.