At the moment, Ethereum currently relies on proof-of-work technology . Proof of work simply involves a large number of computers verifying network transactions and connecting them to the longest transaction history. A chain of transactions is created when these transactions are chronologically linked to one another in blocks. This chain should ideally be the most precise, current, and unbreakable. This is how the blockchain functions if you are familiar with it.
There are benefits to this approach (proof of work), including network security, transparency, avoidance of double expenditure, and unambiguous provenance. Its drawbacks include the difficulty of correcting mistakes, the possibility of permanent asset loss, and ineffective energy use.
Proof of stake works by minimizing the number of computers involved in transaction confirmation. Instead, a small number of computers with a significant stake in the network must guarantee their reliability. The biggest advantage is using less energy, but a drawback is that the network’s security may be more easily compromised.
In conclusion , the Merge is simply an advancement that will convert Ethereum’s current proof-of-work consensus architecture to a proof-of-stake one. By taking this action, Ethereum hopes to dramatically reduce its carbon footprint and establish the framework for scalability upgrades in the future.
Why is the merge Important?
In the crypto world, there is a lot of discussion about the changeover. Will it, for example, instantly increase energy effectiveness? One way or another, fewer machines will confirm Ethereum transactions as a result. In the event that the previous computers don’t find another purpose, it will instead result in a significant amount of electronic garbage. Losses will be incurred by individuals who made investments in the soon-to-be-unusable computers. A decrease in the price of Ethereum might result from this. Simply raising the stakes in the system to maintain the same network strength or integrity is the rationale.
Regarding the value of Ethereum, some experts believe that it will increase over time on its own. According to some experts, the move won’t have an impact on Ethereum’s price. Demand, investor confidence, use cases, general knowledge, and the simplicity of trading with other cryptocurrencies are just a few of the many variables that strongly influence a cryptocurrency’s value.
Undoubtedly, the merger represents a substantial change, and as a result, other cryptocurrencies will certainly feel the push to adopt energy-saving technologies. There is a great deal of certainty that the advantages of the transition outweigh the risks because it has been ongoing for the past two years and has through a number of tests recently.
