Ethereum is currently the second most important blockchain in the world after Bitcoin and it is on the verge of going through a major transformation. Ethereum mining consumes more energy than the total consumption of many small countries but that can all change thanks to the latest update.
Ethereum Merge, one of the biggest software upgrades in the world of cryptocurrency, has created a huge buzz among experts as it promises to cut down energy usage by around 99%. It is a step towards environmentally friendly crypto technology, and it can soon become the norm.
What is Ethereum Merge?
The developers have been working on creating a new version of the Ethereum blockchain which will be much more energy efficient. According to the official website, Ethereum is a digital ledger that controls an ecosystem of “cryptocurrencies, digital tokens (NFTs), games and apps”. The Merge refers to the moment that the Ethereum blockchain will “merge” with a system called the Beacon Chain.
When will Ethereum Merge take place?
The update is expected to happen between Tuesday and Thursday with the new version going live as soon as the Merge ends. Energy consumption has been a major problem for the adoption of cryptocurrencies in banks, but this new update can finally make it a lucrative proposition.
“This in turn may provide a boost to traditional financial institutions’ willingness to develop Ethereum-based services,” the ING bank told CryptoLedger.
The switch towards a more environment-friendly technology will mean that Ethereum will get rid of crypto miners and their machines which are mostly responsible for energy consumption. In place of them, Ethereum will have “validators” who will be rewarded for their work in the system.
Risks of the Merge
While the Ethereum Merge has been termed a “monumental technological milestone” by many, a lot of concern remains regarding the execution. Historically, merges are followed by a short-term jump and a market dip that follows. Even on the technological side, people have expressed their concerns regarding the move considering the opposition from crypto mining companies.
The Ethereum Merge has been dominating searches on Google for quite some time and the company has now introduced a countdown clock for the event. It shows the time remaining for the Merge to be completed and features all the information about this much-anticipated update.