The merger is complete: Ethereum
Cryptocurrency platform Ethereum has completed a long-awaited software upgrade.
The upgrade – known as Merge – has moved the crypto platform into a more environmentally sustainable framework by reducing Ethereum’s energy consumption. It will also lay the foundation for future improvements that will make the platform easier and cheaper to use.
The technical details of the merger are extremely complex, but basically the process boils down to a shift in how cryptocurrency transactions are verified.
After completing the merger, Ethereum has now switched from a verification system called proof of work (PoW) to “proof-of-stake” (PoS) – which uses less energy and does not involve an energy-sucking calculation run, unlike the previous system. PoS also deposits or “stakes” a certain amount of participants’ crypto savings into a pool, which in addition enters them into a lottery. The new system also has a reward system; every time a crypto transaction requires approval, a winner is chosen to confirm the exchange and receive a reward.
Popular estimates show that Ethereum’s transition to proof of effort will reduce energy consumption by more than 99%.
The developers involved in the merger have said that the transition from PoW to PoS will make it easier and friendlier to design future updates that lower gas fees – the cost of carrying out a transaction in the cryptocurrency linked to the Ethereum platform, Ether.
Ethereum is potentially the most important platform in the crypto industry. The platform’s layer of software infrastructure forms the foundation for thousands of applications that manage more than $50 billion in client funds.
So far, the successful upgrade of Ethereum has become the major positive highlight of the crypto industry this year after witnessing a devastating market crash that drained almost $1 trillion from the industry. Many prominent crypto companies were forced into bankruptcy due to the crash.
The upgrade was watched carefully as any errors could complicate the transition. A single failure in the merger could have potentially disrupted the broader crypto industry, particularly companies that use the crypto platform’s software infrastructure. the worst-case scenario could have led to the start-up of new businesses and sent the market into another major tailspin.
As a precaution, cryptocurrency exchange Coinbase suspended certain Ethereum deposits and withdrawals during the merger.
“And we completed! Happy merger everyone. This is a huge moment for the Ethereum ecosystem. Everyone who helped make the merger happen should feel very proud today,” tweeted Ethereum founder Vitalik Buterin.
The completion of the merger has come after years of intense study and debate. Founded in 2013 by Vitalik Buterin, Ethereum is now run by a loose network of coders from around the world who spent months gathering on video calls streamed on YouTube to discuss the intricacies of the merger.
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