According to its creators, the new “proof-of-stake” mechanism will reduce the energy consumption of the Ethereum blockchain by 99.9%. Most blockchains, including the one used by bitcoin, consume enormous amounts of electricity, which has come under criticism from some investors and environmentalists.
The Ethereum Structure, a well-known non-profit company, says it promotes Ethereum, and the upgrade will open the door for other blockchain upgrades that will aid with less expensive transactions.
Two of the most common issues people now have with the Ethereum network are high costs and lengthy transaction delays.
Also Read: Crypto And Fintech Open New Career Options For Youngsters
When Will The Ethereum Merge Take Place?
Soon. The Ethereum Merge is predicted to be completed between September 10 and September 20, while the exact date is uncertain. September 15 is the most likely date, according to the experts.
Meaningful cryptocurrency exchanges have said they would temporarily halt ether deposits and withdrawals during the merger, including Coinbase Global and Binance. They assert that users won’t need to do anything with their money or electronic wallets as part of the update.
The Merge has already been postponed. Most recently, on April 11, ether fell by almost 8% after an Ethereum lead developer announced that plans for an event originally scheduled for June had been postponed while tests on the software were ongoing.
Also Read: Crypto Exchange Huobi Gets Regulatory Permission In British Virgin Islands
What Makes The Ethereum Merge Significant?
Supporters of Ethereum claim that the $1 trillion crypto industry would benefit significantly from the Ethereum Merge.
According to supporters, the Merge will make Ethereum more advantageous than its bitter competitor Bitcoin, the most popular cryptocurrency in the world, in several key areas.
As a result, Ethereum apps may be used more frequently. Financial experts predict that the price of ether, which has increased by more than 50% since June, will shift significantly, contrasted with bitcoin’s slight decline.
Also Read: Ethereum’s Merge Pushes ETH Price To New Height Against Bitcoin
PROOF-OF-STAKE In Short
There are many ways to confirm transactions on the blockchain, the program that powers the majority of cryptocurrencies. Ethereum uses a “proof-of-work” mechanism where cryptocurrency miners verify new transactions.
Utilizing powerful computers, miners upgrade the blockchain and solve challenging mathematical puzzles to produce new cryptocurrency tokens. This secures blockchain records but consumes a lot of energy.
In the “proof-of-stake” method, ether owners protect specific amounts of their currencies from verifying new transactions on the blockchain, creating new coins on top of their “bet” cryptocurrency.
Also Read: Selloff In Crypto Pulls Down The Market Value Below $1Trillion
Maybe. While Ethereum developers assert that the “proof-of-stake” architecture offers defenses against cybercriminals, some worry that offenders may attack the blockchain under the new system.
A single party might alter the blockchain and seize tokens if they amassed most of the ether bet used to validate new transactions. Additionally, according to experts in the field of cryptocurrencies, there is a chance that technical issues would derail the Merge, which fraudsters may use to steal tokens.
Additionally, making it more straightforward for programmers to build programs on the Ethereum network may increase adoption.