With the long-awaited Ethereum merger due to take place in September approaching, discussions have begun about the impact of this merger on the wider crypto space. Originally scheduled for September 19, new information suggests that the Ethereum blockchain upgrade could take place four days earlier.
Whatever date is chosen, the Ethereum merger is sure to happen in September. In addition, this network upgrade will be a game changer for the overall performance of Ethereum going forward. Improvements are expected in how the general purpose blockchain handles power consumption, transaction speed, and achievable scalability.
Things to remember about the upcoming Ethereum merger
The Ethereum merger aims to make the blockchain greener and greener. This will be achieved by moving from a proof of work (PoW) model to a less energy intensive proof of stake (PoS) model. Also, by making this drastic change, Ethereum aims to pave the way for unlimited optimization over time. It also means that emerging phenomena such as decentralized finance (DeFi), non-fungible tokens (NFTs) and smart contracts will benefit greatly.
Blockchain’s focus on PoS also suggests that users can complete tasks at a much lower cost and perhaps more conveniently. Reports also indicate that Fusion will significantly reduce energy consumption by more than 99%. Indeed, owners of the base native currency ETH can now use part of it to power the blockchain. By comparison, the outgoing PoW module relies heavily on traditional mining, where users deploy powerful computers to solve complex mathematical puzzles. This method was the only way for users to manage the Ethereum network or create new tokens.
Ahead of the September deadline, Ethereum’s upcoming operational transition has gone through a series of successful tests. These tests are dress rehearsals where developers can learn before the main event. However, reports also suggest that there remains a small chance that something will go wrong during the main merger. Some of these potential incidents include network slowdowns for a period of time, or even complete shutdowns.
What does the September update mean for the ETH price and the mining community?
Despite the optimistic rhetoric about the benefits of the merger, there are also financial implications. The impact of the September system upgrade on the Ether price is still unclear. However, some analysts believe that the merger will increase the value of ETH, especially when compared to Bitcoin (BTC).
Additionally, the implications of the merger could also make miners redundant in the ever-changing crypto space. In this regard, there are already discussions about Ethereum Classic in the mining community. In fact, some observers believe that Ethereum Classic, which retains mining, may eventually surpass the new Ethereum in popularity.
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