Ethereum, the blockchain that powers large swaths of the crypto ecosystem and underpins the second largest crypto-world currency, completed a transformative software update on Thursday, its co-founder Vitalik Buterin announced on Twitter, a milestone in digital history that could help the sector shed its environmentally unfriendly reputation and pave the way for wider adoption by the general public.
Ethereum has achieved the long-awaited “merger”.
Ethereum on Thursday completed an ambitious software upgrade that connects it to another network and fundamentally changes the way transactions are verified on the blockchain. On the same subject : Why Bitcoin, Ethereum and Polygon climbed today.
This overhaul, dubbed “merger,” frees Ethereum from the power-hungry proof-of-work mechanism that relies on cryptocurrency miners maintaining the network by solving complex mathematical problems.
Post-merger Ethereum will use a proof-of-stake mechanism, which eliminates cryptocurrency mining and requires “validators” to stake their own cryptocurrency for a chance to verify a transaction in exchange for an award.
The more ethers wagered, the greater the chance of winning, although all wagered ethers generate a return.
According to the Ethereum Foundation, this change could reduce Ethereum’s energy consumption by 99.9%, which would go a long way to helping the industry convince critics who say cryptocurrencies are not environmentally sustainable. .
The merger was marked by parties around the world and celebrated by Buterin, who called it a “big moment” for the ecosystem.
The Ethereum merger has been in the works for years and its completion was highly anticipated by the crypto industry. It is an important step in the short history of the field and could change its trajectory by addressing one of the most pressing concerns that hinder popular acceptance, namely environmental impact. At present, Ethereum’s energy footprint is equivalent to that of a small country and its annual consumption is comparable to that of Chile. Read also: Big Eyes Coin, Cardano and Fantom, are your best opportunity to earn with Cryptos. Beyond energy, it is hoped that the change will also increase the security of the Ethereum blockchain and lay the foundation for the development of a faster and cheaper network, which are also important issues. The upgrade could lead to greater institutional acceptance of ether by removing some of the barriers investors faced, Bank of America said.
What to watch out for
Any problem. Ethereum is one of the most widely used blockchains in the crypto space and any issues following the merger could have wide-ranging consequences. Besides being the basis of the second largest cryptocurrency token, Ether, Ethereum backs many other cryptocurrency tokens and other cryptocurrency products like NFTs would be affected. See the article: Top 5 cryptocurrencies to watch (and buy?) this week: BTC, LUNA, AVAX, ATOM, FTM. The complexity and scale of the project delayed its completion on numerous occasions.
$193 billion. It is the market capitalization of Ether, making it the second largest cryptocurrency in the world. It represents nearly 20% of the global cryptocurrency market. Bitcoin, which has a market capitalization of around $385 billion, still uses the proof-of-work system and is widely criticized for its environmental impact.
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The Ethereum ‘merger’: Here’s what to know about the highly anticipated upgrade! – Mag Mirror
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