Have you ever heard the term ‘Merge’ in the world of blockchain, which is currently being discussed by the public?
This merger marked a turning point for the Ethereum network.
But why does Ethereum have to “Merge”?
And what are the benefits of switching to a new consensus mechanism?
Even though it was previously postponed, ‘The Merge’ finally happened. The Merge Ethereum is a new scheme to do the Ethereum blockchain underpinning the ETH coin. This reduces energy consumption by up to 99% when creating new coins and transactions.
This transition will move Ethereum from the proof-of-work blockchain to proof-of-stake. This system is considered the most optimal for reducing energy use.
The Merge is the right move to solve the problem of scalability, efficiency, and transaction speed. In the proof-of-stake method, those who act as transaction validators must only lock or stake several ETH tokens to contribute.
This is much more efficient than running a computer with an energy-intensive graphics card because it is used 24 hours non-stop for mining.
Then after Merge, what next?
The first day after “The Merge,” the decentralized finance or deFi community started switching to the Ethereum network, which seems to have smoothed out after the move from proof-of-work to proof-of-stake. However, proof-of-work advocates have yet to see what this hard fork will do.
So far, competing networks that support the mining community, namely Ethereum proof-of-work and Ethereum Classic, have shown mixed results post “The Merge.”
The Merge will specifically refer to when the proof-of-stake beacon chain is fully operational, replacing the proof-of-work chain as the primary mechanism for consensus and validators.
This will make the Ethereum Blockchain more energy efficient and improve its future performance to be faster and more scalable.
Regulatory interest in Ethereum resulting from a proof-of-work to proof-of-stake transition could be a ‘game changer,’ effectively complying with existing laws in the United States. This is because it is likely that the assets to be staked will generate dividends and are seen as securities.
Of the several things above, the most exciting thing is the effect of Merge Ethereum on all other crypto and Blockchain assets. For example, this would leave bitcoin lagging in the sights of regulators targeting energy-efficient proof-of-work blockchains.
Moreover, many look forward to a successful and fruitful “The Merge Ethereum” for other proof-of-stake crypto assets. This has also been proven by several altcoins that have experienced price increases in the past week!
What do you think? How significant is the continued development of ‘the Merge Ethereum? Comment below, yes! See you in the next video!