The past few weeks has been very volatile for the whole cryptoverse. One of the reasons for the volatility was the highly anticipated major change in the world’s second largest crypto, Ethereum, dubbed as ‘The Merge’. The transition has successfully happened on 15th September 2022, but although it has been implemented, a lot of crypto users and public didn’t really understand what it is and what happen next.
Therefore let us understand what happened one by one starting from the basic.
What was ‘The Merge’?
The Merge was the joining of the original execution layer of Ethereum (the Mainnet that has existed since genesis) with its new proof-of-stake consensus layer, the Beacon Chain. In basic crypto term, Ethereum is switching from Proof-of-Work (PoW) to Proof-of-Stake (PoS).
You asked yourself, ‘Okay, then what that has to do with me as trader/developer/holder?’
The Merge has bring about a major fundamental change in the whole Ethereum network, these are 3 things that you need to know :
- The Merge has Changed Ethereum Consensus Model from Proof-of-Work to Proof-of-Stake
Ethereum is no longer mineable using GPUs, arguably this is better for the environment as it’s no longer require energy intensive process. In exchange, Ethereum moved to Proof-of-Stake, which require validators to have around 33ETH and stake them to validate transaction and earns incentives.
2. Ethereum Becomes More Environmentally Friendly
On Proof-of-Work, Ethereum’s carbon emissions are on par with Singapore and its total energy consumption is comparable to the Netherlands, according to its website. The merge is expected to lower Ethereum’s carbon footprint by over 99%, which could make the platform more attractive to environmentally conscious holder.
3. Ethereum Becomes More Secure
After the merge, the required initial investment to validate transactions on the blockchain would cost around $49,500 or 33 ETH (Price of Ethereum is around $1500 during the writing of this article). That’s a cost everyone, including hackers, would have to bear in order to get into the network in the first place. Due to that barrier, expects Ethereum to become a lot safer according to CEO of choise.com.
Ofcourse all of the points above are all still up for debate. Proof-of-Work and Proof-of-Work supporters has their sets of arguments, and only time will tell which consensus model works in the long run both for usability and on its climate impact. Either way, ENEDEX are there for all kinds of consensus model on ENEDEX’s upcoming multichain DEX which provide access to multiple bridges for tokens from Ethereum, Avalanche, BSC and more!
What are your thoughts on ‘The Merge’? Was it the best thing to ever happen on Ethereum or was it a fatal mistake?
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