It doesn't 'do' anything. Efficiency measures the effect something has in proportion to the energy required for that effect.
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The efficiency of a pickaxe in minecraft is the speed at which the pickaxe can mine materials.
Efficiency is an enchantment applied to tools. It decreases the time taken to break blocks, and a diamond pickaxe at efficiency V swipes through stone faster than on creative.
Efficiency, Silk Touch, Unbreaking and Fortune.
Bronze pickaxe - 181 coins Iron pickaxe - 108 coins Steel pickaxe - 948 coins Mithril pickaxe - 478 coins Adamant pickaxe - 1468 coins Rune pickaxe - 18761 coins Dragon (m) - 16.3 Million Coins
No you can't you can only mine the obsidian with a diamond pickaxe.