Ethereum Completes The Long-Awaited ‘Merge’ Upgrade That Consume Less Energy

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Last Updated on September 15, 2022 by Bitfinsider

The blockchain network of Ethereum has undergone a significant upgrade, making it the most ambitious software upgrade in the cryptocurrency space to date.

The upgrade, known as the Merge, was finished early on Thursday, according to a tweet from Ethereum co-founder Vitalik Buterin.

Source: Twitter

After the transition, the network’s native token Ether, which was stored in specialized wallets known as “staking wallets,” was used to order transactions instead of power-hungry machines. As a result, it is predicted that Ethereum will use 99% less energy.

Such a revolution had never been attempted in the history of cryptocurrency, much less on Ethereum, which is home to 3,500 active decentralized apps, from exchanges to games, that collectively handle billions of dollars’ worth of cryptocurrency. The Merge, which has been in the works for years, doesn’t alter how Ethereum operates for end users, but it is a crucial first step toward additional enhancements that will make the network faster and less expensive and should further boost its reputation and adoption.

“This is the first step in Ethereum’s big journey toward being a very mature system,” Buterin made the statement during a Merge viewing party, which was effectively a public video conference where engineers followed the switch’s development in real time. He further added: “And there’s steps left to go. We still have to scale, we have to fix privacy. To me the Merge symbolizes the difference between an early stage Ethereum and the Ethereum we’ve always wanted.”

As it became apparent that the transition had been successful, developers who had been working on the project for months began congratulating one another on the call. At its peak, more than 41,000 individuals tuned in to watch the viewing party, which included everything from technical explanations of what the Merge would entail to a song performance with a Merge theme. “Carbon footprint is all gone,” was one of the lyrics featured in the song. 

Ether’s characteristics were also altered by the Merge, making it more similar to yield-bearing securities. After the Merge, staking rewards tracker predicts that ethereum will yield a return of about 5.2%. That should increase the coin’s appeal to investors, especially given the anticipated net fall in the amount of Ether tokens immediately after the update.

In the wake of the merger, Ether fell 1.2% to $1,584. Due in part to anticipation around the Merge, the token has increased more than fivefold in 2021, beating Bitcoin by a significant margin. Since reaching record highs in November, both cryptocurrencies have been in trouble, with Ether down more than 50% this calendar year.

The reason the software upgrade is known as the Merge is because it will join the current Ethereum blockchain with a parallel network that has been operating for almost two years in order to test the proof-of-stake idea. The renovation has generally been under discussion for more than seven years.

Based on what transpired following some previous modifications to the Ethereum program, the Merge may be followed by days or even weeks of difficulties even after it has been finished. Around the time of the software upgrade, cryptocurrency exchanges like Coinbase Global Inc. stopped withdrawals and deposits connected to Ethereum out of concern for vulnerabilities and hackers. Aave, a cryptocurrency lender, had halted Ether borrowing before the Merge.

The potential emergence of Ethereum replicas that continue to employ power-hungry computers currently known as miners raises additional concerns. These forks, like EthereumPOW, produce unique versions of the Ether currencies that are distributed to all holders of mainstream Ether. The tokens might be worth something. However, the existence of many Ether versions, each of which runs on a different chain, could cause confusion and give rise to scams and attacks. Copies of other tokens operating on branched chains are also possible.

The Merge has been the focus of years of work by numerous teams of Ethereum developers from throughout the world. They introduced Beacon Chain, an alternative network, around the end of 2020. It was testing a mechanism known as proof of stake that included sorting transactions using staked currency. Utilizing miners, Beacon was combined into the primary Ethereum network during the Merge, enabling Beacon to test the transactional order of the network.

Source: https://coinmarketcap.com/currencies/ethereum/

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