Crypto

Ethereum Blockchain Achieves “Merger”, Historic Update for the Crypto Sector

The Ethereum blockchain, the world’s most important cryptocurrency after the one used for bitcoin, succeeded early Thursday in technical changes that should make it more efficient and less energy-intensive, according to the main participants in the operation. . “And we improved it! (…) Everyone who contributed to the success of The Merge can feel very proud today,” Vitalik Buterin, co-founder and guardian of this blockchain, tweeted.

The “merger” consists of changing the mode of verification of transactions on the blockchain, a huge computer ledger that is considered unfalsifiable, by moving from a consensus mechanism of proof-of-work (“proof of work”, in English) to a proof-of-stake mechanism. This operation will allow Ethereum to consume significantly less electricity in its operation, while the Bitcoin blockchain continues to use proof of work, requiring all machines on the Bitcoin network to run at full speed in order to verify transactions.

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Ether, a cryptocurrency directly related to Ethereum, accounts for about 20% of the total value of virtual currencies in existence, second only to Bitcoin (40%). But Ethereum has a much broader range of applications than its competitor as it serves as a medium for multiple uses such as NFT exchanges.

With rapid growth, Ethereum has decided to switch to a less power-hungry system. A risky operation that some compare to replacing a diesel engine with an electric motor in a moving vehicle.

Following this “mutation,” on Thursday, the world’s largest cryptocurrency exchange, Binance, announced on Twitter that it was resuming Ethereum trading. Binance prudently suspended these exchanges prior to the operation, like most other cryptocurrency exchanges.

So far, “things are going exactly as planned,” Simon Polroth, a blockchain specialist and former president of the Association for the Development of Digital Assets (ADAN), told AFP.

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