Ethereum Merge: A Groundbreaking Move In Crypto History

There’s been a lot of buzz lately around ‘the merge’ in the Ethereum community. But what exactly is it? If you follow crypto news, you’re likely aware that it involves a shift to Proof-of-Stake.

But there are also some detailed accounts regarding the technical process and what this change means for the crypto ecosystem as a whole.

This transition has been in the making for years now, and it’s technically sophisticated and a significant event in the crypto world. Let’s explore what the merge is and how it will impact the future of cryptocurrencies.

What Does ‘The Merge’ Mean?

The Ethereum blockchain allows several Web3 applications, NFT and cryptocurrency projects to exist.

Essentially, the merge, also called ETH 2.0, Ethereum 2.0 or Eth 2, is an upgrade to the current version of the Ethereum blockchain that aims at diminishing its environmental impact, enhancing security in the network, and improving the scalability of the chain.

This merge is basically a combination between the Ethereum mainnet and the Beacon Chain – a separate blockchain developed in 2020- that has been running in tandem with Ethereum.

The Ethereum mainnet currently uses a proof of work system to validate transactions. However, by merging with the Beacon Chain, Ethereum will put an end to the PoW consensus system, and shift to Proof-of-Stake instead, which is a big deal.

How Does Proof-of-stake Differ From Proof-of-work?

Proof-of-Work is the reason why blockchain technology isn’t environmentally sustainable. The massive energy consumption that comes from this mechanism involves energy-intensive computation, known as ‘mining’.

During this process, nodes in the network solve complicated mathematical problems using cryptographic algorithms. On the other hand, Proof-of-stake consensus is significantly less-energy intensive than Proof-of-Work – more precisely, 99.95 % less intensive.

The reason is that PoS can solve complex calculations without requiring nodes in the network. Instead, it ensures the network’s security by relying on users who stake a certain amount of their crypto, hoping that the system will pick them as block validators.

How Will The Merge Impact The World Of Crypto?

Ethereum and Bitcoin are among the most popular blockchains worldwide. ETH is currently the 2nd largest crypto in the world, and many people choose it because it provides different benefits and has multiple use cases.

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You can quickly learn how to buy Ethereum if you choose it as your preferred coin for crypto investing. However, before buying Ether, you should do your research and ensure your finances allow you to make an investment.

ETH blockchain authenticates millions of NFTS and other decentralized financial systems and apps that function due to it.

Hence, the changes that occur on the network matter significantly because the outcome of the merge will impact not only the ETH blockchain but also numerous services and products that depend on it. And considering Ethereum’s influence and size, the merge will likely have a ripple effect on the crypto industry.

Besides the environmental benefits of moving from PoW to PoS, there are also advantages for those who want to be part of the staking community. When it comes to crypto mining, you need expensive equipment to solve the cryptographic issue.

However, that’s not the case for staking, as even a dedicated laptop can be good enough for the job. This means more people could become validators in Ethereum, and as a result, it will be more decentralized.

And by becoming decentralized, Ethereum will also be less appealing to attack. Users must stake tokens to become validators. So, supposing someone wants to act maliciously, the protocol will destroy their ETH and eliminate them from the network. 

This new mechanism hinders anyone from breaking the network’s rules, something that Proof-of-Work doesn’t do.

Moreover, Proof-of-Stake also eliminates the need for costly equipment to run a node, something which represented a significant obstacle to entry for those who wanted to help secure the network while it was in the Proof-of-Work stage.

Becoming more eco-friendly is perhaps one of the most significant changes in the Ethereum upgrade. This means a lot, as it could attract those who hesitated to invest in crypto for environmental reasons.

While exciting, the shift from PoW isn’t good news for everyone. This transition will affect thousands of individuals who mine Ether, especially those who have spent significant capital in this endeavor. Many will likely choose other PoW coins; however, the merge will still impact their bottom line.

However, this is only a minority, as most people in the Ethereum community believe the end of mining is a good thing that helps not only the planet but also Ethereum’s reputation.

When Will The Merge Occur?

If things go as planned, the merge will likely occur around 10-20 September. It’s a long-awaited moment in the crypto world that has already been delayed for a while. But considering that the new version of ETH is promising, it’s worth the wait.

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It is an exciting time for the NFT and crypto space, and with a bit of luck, the merge will happen smoothly, giving the Web3 community a great reason to celebrate and raise environmental awareness.

What To Do If You Currently Own Ether?

The Ethereum upgrade happened in phases. While you were busy investing, all these changes were occurring in the crypto world, and now, the final stage is closer than ever.

But does this mean something to you? Will it impact your investments in any way? If you own Ether at the moment or have invested in it, you have nothing to worry about, as the network’s website suggests.

Other digital assets and technologies also run on ETH’s platform, but you’re also safe if you own one of these, as the merge won’t affect you in any way. 

However, there is something you should be aware of. There will be a lot of scammers trying to take advantage during this delicate phase, so make sure to keep an eye on them and don’t fall into their traps.

They may tell you to upgrade or transfer to a recent token, such as ETH2, when in reality, this token doesn’t even exist. So you should never send your ETH to those people.

Last Words

The Ethereum Merge is soon coming, and we can’t wait to see how it will impact the future of crypto. With the many positive changes it promises to bring, we can only expect this event to turn Ethereum into an even more flourishing cryptocurrency.

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Jonathon Spire

Jonathon Spire

Tech Blogger at Jonathon Spire

My diverse background started with my computer science degree, and later progressed to building laptops and accessories. And now, for the last 7 years, I have been a social media marketing specialist and business growth consultant.

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Jonathon Spire

I blog about a range of tech topics.

For the last 7 years I have been a social media marketing specialist and business growth consultant, so I write about those the most.

Full transparency: I do review a lot of services and I try to do it as objectively as possible; I give honest feedback and only promote services I believe truly work (for which I may or may not receive a commission) – if you are a service owner and you think I have made a mistake then please let me know in the comments section.

– Jon