When they say this is a historic upgrade, yes, it is. The Ethereum merge is an amazing upgrade from the Proof of Work (PoW) mechanism to the Proof of Stake (PoS) mechanism, called the merge. The original Ethereum mainnet is now merged with an independent proof-of-stake blockchain called the Beacon Chain. Due to the merger, Ethereum’s energy consumption has been reduced by approximately 99.95%, which paves the way for the next scaling options such as sharding.
The consensus layer of the Beacon Chain and the execution layer of the Ethereum mainnet were finally merged at block 15537393 at 06:42:42 UTC on September 15. Energy-saving system and lowering the entry barrier for users. Greener PoS systems aim to limit the number of miners, thereby reducing the overall power consumption of cryptocurrency mining.
On the other hand, with the merge upgrade, the Ethereum network’s native token, the second most valuable cryptocurrency in the world, will now increase its value as more developers are interested in building on the Ethereum blockchain Applications are showing keen interest. The upgrade will lead to an increase in ETH trading volume, which is already reflected on cryptocurrency exchanges such as BuyUcoin and Crypto unicorn. This isn’t over yet.
In order to attract and promote trading activity around the merger, the exchange is launching special offers to incentivize cryptocurrency traders and enthusiasts. This will be another start for those who stopped trading due to the ongoing bear phase of the cryptocurrency market.
The merger will also transform traditional use cases for enterprises through proof-of-stake, providing greater security and additional energy savings.
- Increased network capacity
- consume less energy
- Structural modification
Ethereum developers say the merged upgrade will make the network that includes a $60 billion ecosystem of cryptocurrency exchanges, lending companies, NFT markets and more more secure and scalable.
What is the upgrade?
Ethereum’s proof-of-work system is where cryptocurrency miners compete to write transactions to their ledger, solve cryptographic puzzles, and earn rewards for all their efforts. Now, with this new proof-of-stake system, miners are replaced by validators, which means people send at least 32 ETH through the Ethereum network to an address to stake, and these addresses cannot be sold or bought. The more stakes a validator has, the more likely they are to draw a ticket and gain the ability to write blocks of transactions to the Ethereum digital ledger. Is it easy to do?
Well, there’s also a new set of incentives to encourage those who operate these computers to follow the rules as written. These incentives are a way to ensure that the ledger is protected from unnecessary tampering. In the proof-of-stake system, the amount of ETH a person holds determines his control over the network. PoS will also make it more difficult and expensive for attackers trying to compromise the network. Additionally, their staked ETH may also be slashed or reduced as a penalty.
“This is the first step in a great journey for Ethereum to become a very mature system,” Ethereum co-founder Vitalik Buterin said while reflecting on the merger at a watch party on Thursday. , but there is still a long way to go. He also mentioned that Ethereum’s relatively high fees and slow speeds, although updates have not solved these problems, still act as environmental issues as obstacles to the growth of the network’s user base.
Merge it, cheers!
