The Merge..!
For a while, there has been quite a buzz about Ethereum Blockchains' most significant upgrade yet - The Merge!?
Don't get me wrong! I am always hyped for new crypto updates; however, this one particularly had me at the edge, hooked with curiosity. Finally, after the long wait, Ethereum Merge is complete.
Still, many are having a hard time figuring out the big deal. So, for all of you baffled regarding what I am talking about, follow along. We will be discussing what The Merge is and clearing out the air around its hype!
What Exactly Is The Merge?
Currently, the Ethereum Merge is predicted to be one of the most impactful upgrades in the history of web3!
The Merge is a step taken by Ethereum to replace its Proof of Work (PoW) network with a Proof of Stake (PoS) network.
Did these big words overwhelm you? Let's break it down!?
Simply put, Ethereum is a platform whose value is predominantly determined by economic activity and engagement, making security its main priority. Therefore, their new network enables just that; a secure and decentralized system!
Why Is Ethereum Merge Even Important?
Following its release, I became curious about why this change was necessary. Finally, after meticulous hours of research, I have grasped and summarized why we should be focusing on the Ethereum Merge!
Massive Energy Consumption Reduction
If you are familiar with cryptocurrency, you may know that the two biggest blockchains- Bitcoin and Ethereum- are not exactly environmentally friendly. However, it is reported that the mining of Bitcoin itself takes up enough energy to power countries globally like the Philippines and Kazakistan!
Ethereum saw this as a problem in 2014 when the platform started using the PoW network. Thus, the effort of not leaving behind a carbon footprint led them to switch to the PoS network to reduce their energy consumption levels by 99%.
Impenetrable Security Measures
Moreover, the developers are convinced that switching to Proof of Stake will immensely improve their security and make it impossible to access the network. In a report released by Consensys, it is said that a hacker requires more than $11 billion to access only 51% of the web!
Risks Of Ethereum Merge
One can say with certainty that changes as big as these come with their drawbacks! Read further as I discuss all things that could go wrong,
Transition
It is no surprise that the transition from one huge network to another sees severe risks of failure. One wrong move or error could disrupt millions of people, as $50 billion in user funds are at stake during this transition.
The Great Divide
As Ethereum is a decentralized platform, it can't force all its users to switch to the new network. Thus, this can disrupt their plans to reduce their carbon footprint and make a more secure platform.
Resistance From Miners
The new switch to the network completely replaces miners with validators which will make the miners useless to Ethereum. This means a great loss of mining investors as many Ethereum users have given a nod to switching to the PoS chain.
What Does It Mean For Your Cryptocurrency??
A successful Merge means not only benefits for Ethereum but also its competition. If you already are an Ether holder, then according to the Ethereum Foundation, you don't have to do anything other than watch out for any scams.
This Merge can also see a rise in the price of all crypto assets, including Bitcoin. However, it will have ETH outperforming all cryptocurrencies due to it being more environmentally friendly. This rise is to be due to the increase of confidence in investing in crypto!
Ethereum and other cryptocurrencies are always searching to make the platform more accessible and valuable. Thus, I can't wait to see what’s in store for the future!
That's all from me regarding the latest news on Ethereum. Stay tuned and be on the lookout to not miss any Ethereum-related updates!
CEO | Quema | Building scalable and secure IT infrastructures and allocating dedicated IT engineers from our team
2 年Ganesh, thanks for sharing!