How could Ethereum Merge make crypto greener?
Ethereum is gearing up for a major update that has been dubbed “the single most significant event in crypto history.” The change would completely restructure the world’s second-largest blockchain infrastructure.
Analysts estimate that the upgrades will save the network 99 percent in energy expenses and boost the price of Ether higher, but delays have plagued the plans. Everything you need to know about hot trending Ethereum “merge” is right here.
What is the Ethereum merger, and how does it work?
The eventual integration of Ethereum’s mainnet with the beacon chain proof-of-stake mechanism is what it’s all about. The ‘merge’ will signal the end of Ethereum’s proof-of-work (PoW) system in favor of the proof-of-stake (PoS) system.
The PoW consensus mechanism is currently used in Ethereum’s mainnet or leading network. A consensus mechanism is a procedure by which the various nodes of a network achieve mutual consensus to change the state of a blockchain network. It’s the fundamental idea behind blockchain technology.
Ethereum Merge Analysis
The Ethereum network has relied on the PoW consensus method since its inception. The network’s nodes use their processing power to solve complicated mathematical puzzles in PoW. The first node or miner to solve the riddle gets the privilege of adding new blocks to the blockchain. They are compensated with newly mined BTC in exchange for this.
This is an easy technique to establish an agreement, but it has a significant flaw. As the number of transactions in blockchains grows, so does the computational power necessary to answer those puzzles—more computational power means more energy consumed. This became a concern because the dominant energy source is fossil fuels, which are global warming contributors.
As the globe got more environmentally conscious, policymakers began to scrutinize the high-energy usage model of cryptocurrencies like Bitcoin and Ethereum. The Ethereum Foundation decided to alter the consensus process to PoS, which does not demand significant levels of computational power and, consequently, energy due to the inefficiency of PoW in terms of network growth and transaction rate.
Changing the consensus mechanism is a complicated procedure; you can’t just add a few lines to the Ethereum mainnet’s source code; many variables must be considered and tested.
To test the PoS consensus mechanism staking, Ethereum built a parallel PoS network beacon chain. It is independent of the Ethereum mainnet and is intended to be a staker-only network. Because it solely checks the staking process, it can’t handle smart contracts or accounts.
Geth v1.10.17 (Ploitari) is out! This release contains a lot of work in preparation for The Merge, and work for an upcoming change to the way state is stored in go-ethereum. As always, please update your nodes. https://t.co/vnaezln7qK
— Go Ethereum (@go_ethereum) March 29, 2022
The beacon chain was supposed to exist on its own until it was tested. It will then be integrated with the Ethereum mainnet to complete the Ethereum network’s shift to the Proof-of-Stake paradigm. The Kiln testnet was established expressly to test the merge before it occurs later this year.
What are the advantages and disadvantages of merging?
Proponents of the PoS model hope that the merger will make Ethereum more scalable, safe, and long-lasting. The changeover would render the Ethereum blockchain’s miners obsolete and reduce the emissions of the myriad projects that rely on the Ethereum infrastructure, including many NFT platforms.
According to Carl Beekhuizen, an Ethereum Foundation researcher, the move will lower the network’s energy consumption by 99.95%. This may persuade more people to invest in Ethereum.
The ETH Merge is the most significant event-driven catalyst that we’ve ever seen in crypto.
— Yano 🟪 (@JasonYanowitz) April 25, 2022
However, not everyone believes in the advantages. Security issues have been highlighted by critics and reservations regarding the influence on Ethereum’s scalability. Perhaps the most serious concern is the merger’s incessant postponements.
When will the merger take place?
Although the merger was first proposed in 2016, the transition has proven to be more difficult than anticipated.
Vitalik Buterin, the founder of Ethereum, defended the delays in March:
Switching to a simpler PoS in 2017, or even 2020, might have resulted in significantly less environmental damage (and anti-crypto mentality as a result of environmental harm) and significantly more research talent being free to think about scaling.
He went on to say that the move would happen “very shortly.” This was scheduled to happen in June, but insiders cautioned that there could be more delays this month. The integration “won’t be in June, but likely in a few months after,” Ethereum Foundation developer Tim Beiko tweeted on April 12.
“Ethereum has guaranteed proof of stake for five years, so there’s a lot of mistrust,” Beiko added. “It’s difficult to persuade folks that this time is different.” Despite this, Beiko stated that the merger was approaching the end of its “final chapter.” Ethereum supporters will be hoping that he is true, as the network’s rivalry is heating up.