The long-awaited Ethereum merger is complete: will ETH make an impact? – CryptoNewsZ | Jewelry Dukan

On September 15, 2022, the Ethereum mainnet switched to proof-of-stake consensus, improving performance and making the cryptocurrency more sustainable and environmentally friendly. On his Twitter handle, Ethereum founder Vitalik Buterin thanked the community, saying that the merge upgrade uses 99.95% less energy than before, reducing global electricity consumption by 0.2%.

https://twitter.com/VitalikButerin/status/1570306185391378434

What is the merge?

It’s a long-awaited migration from proof-of-work consensus to proof-of-stake consensus. It happened in two basic steps (there were many steps indeed!); First, the algorithm was tested in the test network. After the successful implementation, it was launched on the Ethereum mainnet. It was officially launched with the launch of Bellatrix on September 6th, and the network was updated at the consensus level.

Paris followed, which was implemented in the execution layer. Paris was triggered by a certain Total Difficulty Threshold (TTD). It was required for final block mining, which represents the fixed number of blocks that needed to be mined before the proof-of-stake consensus was converted. Finally, that Ethereum merger was completed on September 15.

Why is merging important?

Merge is considered a milestone in cryptocurrency history and will inspire confidence and optimism about cryptocurrency and its sustenance. After months of volatility due to various factors, experts believe the merger will be a greener and more energy efficient fresh start for Ethereum and its community. In fact, it is a rare occurrence in the decentralized blockchain crypto world.

What happens after the merge upgrade?

After the merge upgrade, the Beacon Chain will drive the validation process with proof-of-stake consensus. At the time of writing this post, validators have already stacked 13 million ETH on the Beacon chain, and it will be merged with the mainnet and take control of the Ethereum network. Many exchanges have delayed the ETH excerpt by a few hours, but everything remains the same apart from the switch from PoW to PoS consensus.

Although the process has been successfully completed, Ethereum is now running on a proof-of-stake consensus, but it has started some thought-provoking arguments.

Indeed, it’s a big step that makes the process energy efficient, but it has increased the value of PoS cryptocurrencies and decreased the importance of PoW asset classes like Bitcoin. Many people believe that community concerns about Ethereum PoW spending has centralized ETH with Lido staking solution. If the government closes the Lido, it will be difficult to survive in the future.

How will the merger affect retailers and their inventories?

The Fusion the upgrade has completed successfully and will not affect users; you ETH-everything stays the same. However, miners now have no role to play on the Ethereum network, and 13 million ETH stakeholders (to date) will play their role in validating new transactions. It will increase transaction rate but will not decrease transaction fees.

Ethereum POW plans to keep miners active

A sliver from the ETH blockchain, ETHW, has announced a plan for PoW hard fork for miners. It will be completed within the next 24 hours. It will not launch at the same price as ETH as it is already down more than 50%. It is difficult to say whether ETHW will survive in the future, because if the price does not go up, it will be difficult to attract new investors to the community.

ETH Outlook Post the Merge

Many market analysts seem optimistic Ethereum price predictions for the near future and they believe ETH will replace major coins as well as asset classes like gold and silver. The bulls expect it to drive up the price over the next few years and people will get cash fast.

On the other hand, bear teams are speculating that ETH price will move in a range as people still doubt the long-term sustainability of the Ethereum network. After all, it changed its base of PoW consensus.

In the US, the latest CPI report has created negative sentiment in the global market and prices will drag down over the next few months. Even after the merge upgrade, Ethereum may not perform well in the short term.

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