Ethereum has successfully completed The Merge, marking the beginning of a new era known as Ethereum 2.0. With the completion of this procedure, the Ethereum blockchain has officially transitioned from a proof-of-work (PoW) model to a proof-of-stake (PoS) one, which has the potential to increase the network’s scalability as well as it’s level of security.
The change took place in the 15537393 blocks on September 15 at 1:42:42 a.m. Eastern Standard Time. With one notable exception, there were no major hitches in the plan. Some investors have described the merging event as the best-case scenario, despite the fact that there was one block that was missing.
- The Ethereum network has transitioned to a proof-of-stake (PoS) architecture.
- “The Merge” was successfully completed on Ethereum at block 15537393 on September 15, 2022, at 1:42:42 Eastern Standard Time.
- The change was accomplished smoothly, with the exception of the absence of one block.
- There has not been any major change in either direction regarding the price of Ethereum.
Why Is Ethereum 2.0 Considered to Be So Significant?
Mining Ethereum won’t be possible after the switch from a proof-of-work (PoW) model to a proof-of-stake (PoS) model. PoW stands for proof of work, while PoS stands for proof of stake. It won’t be necessary to employ machines that need a lot of power in order to generate or mine fresh Ether. As a direct consequence of this change, the Ethereum network’s overall energy usage will drop by 99.95 percent.
Staking, which will replace mining as Ethereum’s method of network protection, will allow for a greater number of people to participate in the activity while simultaneously expanding its scope. As Ethereum was one of the larger sources of money for mining pools, many pools have been taking precautions to guarantee that at least part of their revenue would be preserved throughout the changeover. Recently, a number of people have shifted their focus to Ethereum Classic (ETC) and Ravencoin (RVN).
The transition to Point of Sale has been planned for quite some time, but the developers have had to bear in mind the magnitude of the move from a technological perspective. It is expected that the Proof-of-Stake architecture will make Ethereum’s network more secure and scalable.
The Cost of Ethereum Has More or Less Stabilized Recently
The price of Ether and the cryptocurrency market as a whole have not altered in the hours after ‘The Merge,’ but the true effect of this event won’t be seen for the next several months at the earliest.
The Proof-of-Stake (PoS) method is one component of the initiative to make Ethereum more scalable, and industry experts anticipate that the coming months will demonstrate the good benefits of this mechanism.
Despite the fact that “The Merge” does not prioritize lowering transaction fees or boosting transaction speeds, it does lay the groundwork for future upgrades that will address these issues. Other solutions, including scaling solutions for Layer 2, exist to assist in the management of such issues.
The Crypto Community Has a Happy Reaction to It
It should come as no surprise that a large number of notable personalities from the cryptocurrency business, as well as members of the community in general, went to social media in order to commemorate the event. Vitalik Buterin, one of Ethereum’s co-founders, said that it was an important milestone for the Ethereum ecosystem and that people who had worked on it should feel a great deal of pride.
Yuga Labs, the business that is responsible for the creation of NFT collections such as Bored Ape Yacht Club and CryptoPunks, has also sent their congratulations to the Ethereum team for the job that they have done. Many people believe that a new age has started, and one of the co-founders of the Polygon Network, Sandeep Nailwal, said that The Merge has brought the network into the “PoS universe.”
Following the publication of the Bitcoin whitepaper, the inventor of ShapeShift, Erik Voorhees, referred to it as “the most momentous event in crypto’s history.”
The Crux of the Matter
Because it uses 99.5% less energy than Bitcoin, Ethereum is said to be better for the environment. This has been one of the primary topics of discussion around Ethereum 2.0. It is unknown, however, how the update will function in the months to come, nor how long it will take to fix the scalability and gas cost difficulties at this time.