Ethereum Merge is the most popular Merge in the history of cryptocurrency and one step forward for greener infrastructure.
Mining cryptocurrencies is a time-consuming, expensive, and rarely profitable endeavor. Mining is appealing to many cryptocurrency investors because miners are compensated in cryptocurrency tokens for their efforts. Collaboration enables businesses to acquire large amounts of mining equipment. As a result, anyone can participate in a mining pool and contribute one or more computers to the network. This has a significant environmental impact because it necessitates the cooperation of thousands of systems to generate heat, burn oxygen, consume resources, and emit carbon dioxide.
Ethereum has moved from proof-of-work (PoW) to proof-of-stake (PoS), allowing it to be more involved and reduce power consumption by 99%. The Merge is Ethereum’s second major iteration. Ethereum developers have been working on a new transaction system for nearly two years, which they now claim is ready for widespread adoption. Simply put, the Merge aims to make it possible to add a new data block to the Ethereum network using fewer people and computers. The name “Merge” was chosen for the software update because it involves the merger of the original Ethereum blockchain and a nearly year-old proof-of-stake test network.
What will the Merge bring to the table?
The Merge can potentially raise the number of transactions Ethereum can process per second from 15 to 100,000. While these updates are being implemented, larger-scale testing is required to determine whether they improve account security. Ethereum’s creators have issued a warning on the Ethereum Foundation’s website outlining how hackers can attempt to defraud cryptocurrency holders.
Staked wallets can now earn interest from ETH tokens. This has the potential to attract hedge funds, asset managers, and high-net-worth individuals who have been sitting on the sidelines of the cryptocurrency market. Improvements that promise faster transactions will also be possible with the new software. Some believe that the value of Ether will eventually surpass that of Bitcoin.
The successful launch of The Merge has put additional pressure on other cryptocurrencies that still rely on proof of work. Bitcoin is the elephant in the room, consuming the same amount of electricity as Kazakhstan in a year. The Merge is an encouraging first step toward a more secure future for cryptocurrencies. Proof-of-work forks have been widely condemned as scams and diversions by Ethereum’s core developers. It has, however, had some success in sub-communities of the cryptography community.
Let us know what you think about the Merge. And will bitcoin follow this?