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The Adoption of a New Technique
The biggest shift to Ethereum in its entire history of existence is expected to happen in a few weeks. The proof-of-work consensus mechanism that has been used up until now to protect the Ethereum blockchain uses more energy than Belgium as a whole. The adoption of a new proof-of-stake technique is anticipated to reduce Ethereum’s energy use by a factor of 1,000 starting next month.
The odds are against us. Chaos might result from a failed transfer for the several cryptocurrency ventures built on top of Ethereum. The conclusion of years of meticulous planning by Ethereum’s core developers would be a smooth transition. The date of the Merge has been frequently postponed by developers over the past year so they can have more time to prepare. On August 10, they finished a last rehearsal, paving the way for the move to occur in the middle of September.
The New Plan Would Make the Ethereum Network More Centralized
A successful Merge will result in the immediate unemployment of all Ethereum miners worldwide. In order to support the upkeep of the Ethereum blockchain and to earn freshly produced ether in the process, thousands of users have purchased top-tier graphics cards over the past seven years. The new method of updating the Ethereum blockchain does not need the same type of powerful gear or the associated high electricity costs. Therefore, as Ethereum miners leave the sector, the price of secondhand graphics cards may continue to decline.
However, the move to proof-of-stake represents a significant redesign of the Ethereum network rather than merely a way to save energy. The Merge, according to Ethereum creator Vitalik Buterin, will serve as the starting point for a number of upcoming improvements that will enable the network to support a significantly higher volume of transactions in the years to come. However, many fear that the new plan would make the Ethereum network more centralized and hence susceptible to governmental regulation.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
