The cryptocurrency world keeps getting new changes and innovations but at no point have crypto enthusiasts been this excited about a new development like The Ethereum Merge.
Many Twitter users have expressed their feelings about how it could be one of the biggest things to happen in the crypto space. A lot of info is flying around, and once it gains momentum, it will likely become huge as it will see Ethereum move from Proof of Work (PoW) to Proof of Stake (PoS).
As the merge approaches, Ethereum holders are going bullish.
Thanks to Twitter user @Twofivedev, who made a thread explaining the Ethereum merge using diagrams and drawings of beavers, the public can understand what the merge entails and what it means for the crypto world.
The merge will take the Ethereum ecosystem from PoW to PoS. Proof of Work is an underlying algorithm that enables the decentralized network to agree on factors like account balances and the order of transactions. It is a mechanism that sets the rules and difficulties for the work of miners. While “work” in Proof of Work refers to the miners’ activities, it is also the act of adding valid blocks to the chain. A lot of energy is expended using this mechanism, making Ethereum bad for the environment. Already, environmentalists have been complaining about the effects of Ethereum on the environment.
On the other hand, Proof of Stake is the consensus mechanism that Ethereum will make use of after the merge. It is a consensus mechanism that blockchains use to achieve distributed consensus. In Proof of Stake, validators explicitly stake capital in the form of ether into a smart contract on Ethereum.
Before full deployment, the new mechanism will undergo adequate tests, which were finalized at the end of July, according to Ethereum developers. They have also expressed their readiness to launch the merge. According to Watcherguru, the merge is estimated to be completed between September 15th and 16th. It also signifies the beginning of their multi-year plan that will pave the way for the eventual announcement of ETH 2.0.
With the full switch to PoS, the environment will be better for it as there will be a reduced impact. On the Proof of Stake mechanism, Ethereum’s current total energy consumption is around 112 TWh annually, similar to the energy consumption of The Netherlands, which has a population of over 17 million people.
Effect on the Crypto Community
Everyone is excited about anything that will reduce energy consumption and the concept of the merge. In addition, many other users are thrilled over the possibility of Ethereum’s price increasing significantly. However, while it is not guaranteed, hope and excitement are there.
In a tweet, Lark Davis, an Ethereum investor with a million followers, said: “The Ethereum merge is a bigger and more important event than the Bitcoin halving.”
As the crypto world awaits the Ethereum Merge, it’s left to see how things will change and shift for the crypto world, especially Ethereum holders. It’s a unique event that is worth watching closely.
