The world's second biggest cryptocurrency just got a lot greener

Ethereum, the world's second most valuable cryptocurrency, has completed a massive software upgrade that its backers claim will slash its carbon footprint. 

The Long-awaited revamp, which is known as The Merge will reduce ethereum's energy consumption by nearly 99.95%, according to Ethereum Foundation, nonprofit organization dedicated to supporting crypto

The Merge refers to original Ethereum Mainnet merging the Beacon Chain. Both were running on a mechanism called proof-of-work under which high-powered computers were required to solve complex puzzles.

It moves Ethereum to a mechanism called "proof-of-stake," which is more energy efficient, as it does away with need for computers. Instead, users deposit to participate in the race for more currency.

"Happy merge all," Vitalik Buterin, the programmer who helped create Ethereum said on Twitter. "This is a big moment. Everyone who helped make the merge happen should feel very proud today," he added.

The co-founder said that the upgrade will reduce worldwide electricity consumption by 0.2%. While crypto has seen phenomenal rise in last few years, observers say they're terrible for the environment.

Ethereum was down 0.7% after the news trading at $1,592.78, but analysts say upgrade could have a big impact. The world's most valuable cryptocurrency, bitcoin, was down almost 1%, trading at $20,174.