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Highly anticipated upgrade on Ethereum network—The Merge—is around the corner. Ethereum network is expected to transition from proof-of-work to proof-of-stakes consensus mechanism. This will bring a whole lot of advantages and benefits altogether such as solving the issues of scalability, high transaction fees and low transaction speed, etc. It will become more energy efficient given the lesser amount of computing systems required to validate ETH transactions.
Although it’s a bit tough to tell the exact time for the Merge to take place, yet the developers set the deadline of September 19th, 2022. It has started at the time of writing and is expected to bring revolutionary changes. But at the same time, there is also a possibility that it would not stand up to the expectations.
With the excitement on the approach of the Merge, we tend to forget that the transition from POW to POS is complex. With that being said, I wanted to reach out and see if you might be interested in some insights from Paolo Ardoino, CTO of Bitfinex on the upcoming Eth Merge. It is important to mention that while Bitfinex the platform will support the Merge for all customers and allow the trading of ETHW, it is also a Bitcoin-first platform.
According to Ardoino –
“While Bitcoin is a form of money, Ethereum is stuck between claims of being a form of money and claims of being a platform, but ETH cannot compete with Bitcoin on the money front because there is no fixed supply, and it isn’t really a world computer yet because it has a shared global state and hence too slow to be scalable. The Merge will not fix transaction fees or make Ethereum any more decentralized. The Merge has put a huge focus on Ethereum, but what will we be left with? We will still need L2s, there will still be times of network stress, and the congestion, and high gas fees, which have yet to solve themselves will likely still exist. The real message here isn’t what the Merge will change but what asset already exists that provides the core themes of our industry, which includes true decentralization. The fact of the matter is that Bitcoin is the only asset out there that has a solid narrative, one that hasn’t changed. Ethereum still doesn’t match Bitcoin because its narrative keeps shifting.”
Bitfinex is one of the prominent crypto exchanges in the crypto industry today. Established in 2012, Bitfinex is among the oldest exchanges. The exchange is well-known for offering trading services to investors worldwide. In addition, it provides services like peer-to-peer lending, the OTC market, and funded trading. While Market analysts and trading team at Bitfinex have years of experience in the crypto industry.
Mr, Nikhil Ingole is a Chief Editor at The Coin Republic with over five years of technical analysis & trading experience in Forex and Crypto. As a commerce graduate, he has taken a keen interest in blockchain’s future potentials in the financial industry. A keen cryptocurrency enthusiast, he is very supportive of new media projects, pioneer ideas and the Bitcoin community. He possesses strong technical, analytical skills and is well known for his financial market’s informative analysis. Other than crypto, Nikhil Loves to watch his favorite football team and keep up to date with the latest Formula 1 racing.
