A Turning Point In Crypto History: Ethereum Merge At A Glance
Blockchain technology has tremendously changed conventional systems. With its most popular application –cryptocurrency, as well as DeFi, the cutting-edge technology is revolutionizing financial systems and payment methods. While it is still in its early stages, developers are constantly exploring the prospects of blockchain technology.
In 2015, Vitalik Buterin rolled out his project, Ethereum. His mission was to create a reliable ecosystem that not only provides payment solutions to users but also gives room for the development of emerging projects. In 2020, it was announced that an upgrade to the project would soon be released. Initially called Ethereum 2.0, this upgrade, dubbed the Ethereum merge, is here.
About the merge
The major reason behind the upgrade is the effect that Ethereum mining has on the environment. Following the effects of global warming and greenhouse gases, many companies and organizations have been on the lookout for cleaner and sustainable energy. Those who can’t find one yet are looking for more efficient ways to utilize energy. This is what the merge aims to achieve.
At the time of this writing, the energy cost of mining Ethereum across the world is equal to what an entire nation, Finland, consumes. This leaves a carbon footprint on the planet that counters the dream of a green earth. The merge aims to cut down the energy cost of adding blocks to the chain by more than 99%. By changing from a Proof-of-Mining (PoM) system to a Proof-of-Stake (PoS) system, new blocks would be added to the chain by staking rather than the traditional, energy-consuming, mining system.
When Will the Merge Happen?
According to the developers of the project, the merge is to take place on the 15th or 16th of September 2022. It’s worth noting that anyone staking Ethereum ahead of the merge won’t be able to remove their stakes after the merge, at least for a period of 8 months to a year.
Price Predictions Following the Merge?
Price analysts are abuzz with uncertainty about the price of Ethereum post the merge. While some believe the merge could send ETH skyrocketing to new highs, some others are sceptical about price movements post the merge. However, if the merger marks a high boost for ETH, it’s speculated that prices would go up. With more coins staked, and news of the merger’s success, demand for Ethereum tokens will go up, probably leading to a new All-Time-High (ATH).
Following a problem with the merge, panic would circulate within the community and this would greatly affect the price negatively. It’s also possible that miners would hate this new PoS system and boycott the project altogether.
Conclusion
The Ethereum merge is an upgrade to the Ethereum project, particularly on how blocks are added to the chain. Given the popularity of Etherum, it’s no surprise that the merge has taken the spotlight in the crypto space in the past few weeks. Some enthusiasts have already staked their Etherum ahead of the merge, and some have converted their assets to stablecoins. Everyone is, without a doubt, watching the merge closely.
