Ethereum merge is going to help cut down energy consumption by about 99 percent. Read to know more about the new development.
What is the Ethereum Merge?
Currently, Ethereum is the second most important blockchain after Bitcoin. However, it also consumes more energy to mine it than what small nation uses. However, it is on the verge of a major transformation that can help reduce it. Ethereum Merge is the biggest update yet and is creating a huge buzz with its promise to reduce usage by about 99 percent. The environmentally friendly update for crypto use is a revolutionary step.
With this new version of the blockchain, developers are trying to create an energy-efficient Ethereum. “The Merge represents the joining of the existing execution layer of Ethereum (the Mainnet we use today) with its new proof-of-stake consensus layer, the Beacon Chain. It eliminates the need for energy-intensive mining and instead secures the network using staked ETH. A truly exciting step in realizing the Ethereum vision – more scalability, security, and sustainability,” stated the company. It is expected to take place between Tuesday and Thursday. The new version will go live as the Merge ends.
More on the new update
Energy consumption is a major problem for widespread adoption by banks. However, with the Ethereum Merge, it is going to be a lucrative offer. The switch towards environmentally friendly tech means that the firm is getting rid of crypto mines. Their machines are mainly responsible for energy consumption. “Validators” will be taking their place and receive rewards for their work in the new system. “This in turn may provide a boost to traditional financial institutions’ willingness to develop Ethereum-based services,” stated the ING bank. (www.speedclean.com)
Despite the “monumental technological milestone”, a lot of concerns remain regarding its execution. Merges are generally followed by a short-term jump and a market dip. Additionally, some are concerned about the technical aspects based on the opposition by crypto mining firms. Google also has a countdown mentioning details such as difficulty and hash rate.