Crypto

Merger: Important Ethereum Blockchain Succeeds in Transformation

PublishedSeptember 15, 2022 at 11:52 am

mergerImportant Ethereum Blockchain Succeeds in Its Transformation

The most important blockchain in the world of cryptocurrencies, after being used for bitcoin, has changed its mode of operation to become less energy intensive.

Ethereum blockchain and its virtual currency Ether.

REUTERS

“And we improved! (…) Everyone who contributed to the success of the merger (note: merger, the technical name for a mutation) can feel very proud today,” Vitalik Buterin, co-founder and guardian of the Ethereum blockchain, tweeted. The world’s most important cryptocurrency after the one used for bitcoin has succeeded in technical changes that should make it more efficient and less energy intensive, according to the main participants of the operation on Thursday. The “merge” consists in changing the mode of verification of transactions in the “blockchain”, a huge computer ledger that cannot be falsified.

Ether, a cryptocurrency directly related to Ethereum, only 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. In order to become less energy intensive in the face of rapid growth, Ethereum decided to move to a less energy intensive system. A risky operation that some compare to replacing a diesel engine with an electric motor in a moving vehicle.

From “Proof of Work” to “Proof of Stake”

Specifically, it is one of the pillars of this (“blockchain”) “block chain” – a technology that serves, among other things, to support cryptocurrencies – that has been changed. Since it operates without a central authority, therefore, some of its users must check the transactions that take place there, such as NFT exchanges. Until now, to belong to this circle of “validators”, one had to solve a very complex calculation that required a lot of computing power. The exercise, called “Proof of Work” in English, consumes a lot of electricity, so the idea was to find a more environmentally friendly alternative. Therefore, from now on, it will be necessary to stake 32 Ether (cryptocurrency linked to Ethereum, i.e. approximately 50,000 francs) in order to be able to verify the “blockchain”, this amount can be confiscated in case of misconduct, a method called “Proof of Stake” (“Proof of Stake” in French).

Binance resumes trading

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, “everything has gone exactly as planned,” Simon Polroth, a blockchain specialist and former president of the Association for the Development of Digital Assets (ADAN), told AFP.

(AFP)

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