Press Release

What you need to know about the Ethereum merge

One of the trending topics in the crypto community these days is most definitely the Ethereum merge, mainly because this is the second-largest ecosystem in the crypto sphere today. Up until recently, there were basically two blockchains operating in parallel and the merge was the final step towards an updated and potentially more efficient environment.

Despite a continuous drop in the price of Ether, the token powering the Ethereum blockchain, there are a few positive things about the merge you should know. So, what does the Ethereum merge mean for you? Let’s find out.

 benefits of the Ethereum merge benefits of the Ethereum merge

Source: https://unsplash.com/photos/v0VjjYYFjOg

A blockchain based on Proof-of-Stake

Now that the merge is complete, Ethereum runs on a Proof-of-Stake (PoS) consensus mechanism, which means miners have been replaced by stakers. This means that anyone wishing to contribute to the blockchain needs to “lock” Ether tokens. An algorithm assigns the right to verify a new block and those with larger ETH holdings staked have a higher probability, but not a certainty, to also be the ones who verify, and ultimately receive the reward.

According to Invest Ecapitals, a trading brand that offers coverage for a wide range of cryptocurrencies, Proof-of-Stake simplified the process, since not all miners have to verify all transactions. The double-spending issue is negated because anyone taking part in staking has no interest in falsely verifying transactions (that might imply a financial loss).

Lower energy consumption

Most of the talk has been around energy consumption, especially now when the world is facing a global shortage of energy. Cryptocurrencies running on Proof-of-Work (PoW) have long been accused of draining too much energy from the grid, which could have been used in other industries more vital to the global economy.

Source: https://unsplash.com/photos/FquLC11A1AI

Transitioning to Proof-of-Stake solves that issue and now the Ethereum network consumes 99.5% less energy to operate. Before the merge, the blockchain used 72 terawatt-hour per year, the amount used by a country such as Austria. Some estimates show that this is approximately 0.34% of the world’s consumption. It ends up having a positive impact on the environment, as well, with many nations now once again forced to resume energy production via polluting fossil fuels such as coal.

Paving the way for other updates

Thousands of crypto projects operate on the Ethereum blockchain, some of which are available for trading with Invest Ecapitals. The merge can bring benefits but according to Vitalik Buterin, one of the original founders of Ethereum, this represents only 55% of the desired updates.

In order to reach its full potential, the network needs to adapt to new demands, including the ability to process transactions faster and at lower costs. One of the ways that can be done is via sharding. This is a process that divides the blockchain into smaller, more manageable blockchains, freeing validators to focus their attention within their shards.

Introducing sharding will mean lighter requirements for those who want to become validators since they will have to store only a fraction of the blockchain’s data. The introduction of PoS paves the way for sharding, something that would have been impossible while stuck with the old PoW.


Discuss this news on our Telegram Community. Subscribe to us on Google news and do follow us on Twitter @Blockmanity

Did you like the news you just read? Please leave a feedback to help us serve you better

Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.

Guest Author

Share
Published by
Guest Author

Recent Posts

Bullish Signals for Sui Blockchain: Top SUI meme projects of 2024

Macro guru and Real Vision CEO Raoul Pal shone the spotlight on a rising layer-1…

3 months ago

AI Companions: A New Era of Digital Relationships and Virtual Experiences

As the technology landscape transforms at lightning speed, AI Companions has positioned itself as a…

3 months ago

zkCross Network: Simplifying DeFi Complexity and Achieving Fundraising Success

Did you know that 85% of DeFi value is concentrated in six blockchains?  DeFi is…

4 months ago

Don’t Miss Out: Get $CLP Tokens in the Exclusive RWA IDO Now!

CLAPART - a groundbreaking RWA platform has launched its much-anticipated $CLP token IDO on Gempad…

4 months ago

Step into the Future of Web3 at Blockchain Futuristic Conference 2024, August 13-14

Join us at BFC 2024 to explore the future of Web3. Use a special discount…

5 months ago

WebX Asia 2024: Web3 Innovation Ignites in Tokyo

Catch all the updates with Altcoin Observer, official media partner of WebX Asia 2024. Gear…

5 months ago