Ethereum Merge on 13 to 16 September and its effect on the Crypto-market
Ethereum is a blockchain that was created in 2011 by Vitalik Buterin and it has been growing ever since. Ethereum has become one of the biggest platforms for decentralized applications (Dapps) and smart contracts, which means that it’s attracting lots of attention from investors who want to make money from cryptocurrencies. However, there are some concerns about how ‘the merger’ will affect the market because it could lead to some problems for investors who own ERC20 tokens (ERC-20 tokens are used for creating smart contracts on Ethereum).
At the same time that Ethereum (ETH-USD) is actually dropping its crucial consensus layer, the rest of the Ethereum blockchain – aka its execution layer – will be merging into the new Proof-of-stake (PoS) layer called the Beacon Chain. Once Merge is completed, Ethereum main net will move away from Proof of Work (PoW), instead embracing Beacon Chains Proof-of-Stake engine. The process is said to happen when Ethereum is going to hit a certain number which is most likely to happen somewhere between 13 to 16 September. Once Ethereum switches over to the Proof-of-Stake consensus mechanism after the merge, Ethereum will rely on trusted entities known as Validators to validate transactions and add new blocks to its network. Once the Merge is completed, Ethereum (ETH-USD) will employ only the staking validators that have pledged their capital (at least 32 ETH) to the blockchain in order to earn the stake rewards.
Ethereum has a lot of potential. It’s just too bad that it isn’t as energy efficient as it could be. While the merger will reduce the amount of money spent on mining, there are other ways in which this will affect our environment:
● Energy consumption: The new smart contract system will use 90% less energy than Ethereum currently does. This means that miners will be saving tons of electricity and helping to reduce carbon emissions worldwide!
● Transaction fees: When you send money from one person to another through an exchange or wallet service, they may charge you a fee for doing so—and these fees can add up quickly over time if you don’t know how much they are or what their prices are at different times (or even worse). With no need for charges like these anymore after this merger happens…well…you’ll probably wonder why anyone would ever pay them before then either way!
Ethereum merger will bring huge returns to investors. A merger is a huge event that will reduce energy consumption. The blockchain will be more secure after the merger, meaning fewer transactions are needed because they are built on top of Ethereum and not Bitcoin or Litecoin. In the short-term, The Merge could cause Ethereum prices to experience higher volatility depending on its success and outcomes. Investors should be patient and take advantage of it over the long term. The Merge is a self-executing process. Merge will cause an 80% net reduction of the yearly supply of Ethereum. This means over time, ETHs supply will stay constant (or may even decline; making Ethereum deflationary), giving its investors a boost.
Ethereum merger is a game changer for the blockchain space. It will help reduce energy consumption and bring huge returns to investors. The event also has the potential to make PoS more efficient as well as open up more possibilities for other decentralized applications using Ethereum’s smart contracts. Looks like the crypto-investors are in for a good roller-coaster ride!
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