BENGALURU: The Merge, the largest software upgrade in the crypto industry, has been completed. The second-largest cryptocurrency, Ethereum, has undergone a technological update known as the ‘Merge.’
The update is thought to be critical since it reduces energy use by more than 99 percent. Ethereum has now switched from the Proof-of-Work (PoW) consensus technique to the Proof-of-Stake (PoS) consensus mechanism (PoS).
This is also claimed to be a difficult technological event, and it represents a watershed moment for the Ethereum ecosystem.
Ethereum Merge, according to Ashish Singhal, Co-founder and CEO of CoinSwitch, is a shift of unparalleled magnitude and complexity in the crypto industry. The successful transition of Ethereum to a greener and more energy-efficient blockchain will lead to higher adoption of the technology in the long run.
Ethereum is the fundamental infrastructure layer of Web3 and has the largest popularity among developers and DeFi (decentralised finance) initiatives today. However, in order for blockchain to be more widely adopted by businesses, energy usage must be dramatically lowered, as firms strive for carbon neutrality. This is exactly what the Merge will do, he claims.
As a result, the Merge is noteworthy not just because of the technological challenges involved. According to Singhal, it might be the trigger for increased acceptance of the technology.
Following the Merge, Ethereum’s core developers will continue to work on the open-source network as before, with enhancements to network fees, performance, and security planned in the next months and years.
ETH was trading steady at $1,601.17 on Thursday afternoon, despite the successful Ethereum Merge.
“Following the merger, the Ethereum Foundation will attempt to boost transaction speed and reduce gas prices by widening the network. Investors will have some trade-off options, but Ethereum’s merger and popularity will make it a more feasible alternative in the long term “MuffinPay, Bill Payment & Utility Crypto Founder & CEO Dileep Seinberg
However, Mohammed Roshan, CEO and Co-Founder of GoSats, believes that a Merge is an over-hyped event with little substance. Proof-of-stake, he claims, will push Ethereum towards centralisation and make the blockchain less secure.
“Day traders would be the largest beneficiaries since this is a speculative sector,” Roshan remarked.