All eyes are on The Merger, the next update of Ethereum and not only the community that supports ETH. This event also applies to all communities of the crypto sphere, but also to the Internet in general.
The Merge finally comes
After many years of delay, The Merge will become a reality in the coming days. This event, also known as Ethereum 2.0, will occur when the Ethereum blockchain uses the Proof of Stake (PoS) mechanism instead of the Proof of Work (PoW) mechanism.
It turns out that the first part of the update was already in place under the Code name Bellatrix. This is done to upgrade The Beacon Chain which contains the Proof of Stake mechanism. The Merger will be complete as soon as Paris is updated. The latter could happen today and on Thursday at worst according to Ethereum developers.
For imagine how important this update is, think for a second if Ethereum was a vessel not ready for interstellar travel and that The Beacon Chain is precisely this new engine that is going to achieve this goal.
It is this kind of event that will happen with The Merge to understand why everyone is in the cryptocurrency industry, but also outside of it. curious about the development of this project and what will become of Ethereum once the update is in place.
Consequences for Ethereum
Once the Merger is in place, the first major impact will be on energy consumption, which will be greatly reduced. In fact, there is more than a change to the Proof of Stake mechanism 99% less energy that the Ethereum network will consume.
In addition, it will be possible to send more updates in the future to speed up transactions on the network and its scalability. So, The Merger it opens a whole new horizon for Ethereum filled with possibilities.
So technically this should affect both Ethereum the network and the cryptocurrency in a very positive way in the coming months and years. As for the evolution of the price of Ethereum after The Merge, it is difficult to predict and the current bearish market is clearly not helping. However, it may be that in the future Ethereum will significantly increase its current value around $1700.
For now, the most impressive aspect remains this huge drop in energy after the transition from Proof of Work to Proof of Commitment. For the good and simple reason that the PoW mechanism is very energy intensive, because it puts many miners in competition to verify the integrity of the blockchain, where Proof of Stake will randomly select a validator responsible for completing the operation .
Bitcoin in the spotlight
Bitcoin is the first influence of The Merge. In fact, cryptocurrencies are very energy intensive and therefore polluting. Now, with this significant reduction in energy consumption, Ethereum is sort of going green where the Bitcoin is still a very poor student.
The latter uses a Proof of Work mechanism and therefore pits miners against each other and is therefore one of the greediest or even cryptocurrencies. the free if we consider it to be the most common.
Therefore, this could affect Bitcoin especially on the level future regulations which seeks to ban these greedy crypts. For example, last week the White House sounded the alarm about the energy consumption of Bitcoin, which uses 60 to 70% of all the electricity used to power the cryptocurrency industry.
There is growing criticism of blockchains continuing to use the much more greedy Proof of Work mechanism than the Proof of Stake mechanism. On the other hand, some opponents explain that PoS could consume less, but at the expense of the security of the blockchain on which it works. There are several communities in the crypto world, even on Ethereum against withdrawing the use of Proof of Work.
The impact on other corners
Not only Ethereum itself or Bitcoin are affected by The Merge, but also other coins such as Ethereum Classic (a fork of Ethereum) or Ethereum killers.
In fact, these are alternative solutions for Ethereum and since not everyone is necessary for this update, it also allows reinforce other solutions in the world of cryptocurrencies.
So, in recent weeks beyond Ethereum Classic which has increased in value, this has also been the case Solana or Polygon for example. Additionally, with Ethereum now using Proof of Stake this will make NFTs a bit greener. In fact, for many of them, they use the Ethereum blockchain.
It will still be necessary to be careful with The Merge whose arrival is imminent. In fact, many scammers or even hackers will try more than usual to influence users and trick them into stealing their cryptocurrencies. So beware and double check the information before doing anything irreversible.
Beyond all these upcoming changes, the Merger could also facilitate the introduction of the internet on the web3 and thus indirectly for the Metaverse after how this blockchain develops in the coming years.