Ethereum Merger

Web 3 & BlockchainEthereum Merger

Ethereum Merger

What The Ethereum Merger Will Mean For Investors

Ethereum has risen to become the second-largest cryptocurrency to Bitcoin, but what will the upcoming proposed merger mean for everyone involved with it? News of the merger was confirmed when the makers of Ethereum put forward their strategy.

Vitalik Butterin has acknowledged that the merger could happen in August 2022, and that it would be a smart move from an investor’s point of view. The merger would give investors a chance to trade Ethereum at a higher value.

Looking at the merger from the inside out, this move would help solve a problem coded in the blockchain known as the Difficulty Bomb. The Difficulty Bomb was added by coders back in 2016 with the future merger in mind.

What is the problem with the Difficulty Bomb?

The Difficulty Bomb was coded into the blockchain to incentivise miners and push the concept of adoption of the proof stake chain much further. Ethereum works on proof of work, so miners must complete a set of puzzles to validate transactions.

This means that the process uses a tremendous amount of computer power, which isn’t very environmentally friendly. The merge will look at ways that users can validate transactions according to the number of coins they contribute. But the Difficulty Bomb won’t make things easy for users.

Ethereum’s coders and developers will need time to test the merger because if the bombs activate, the Ethereum network will quickly slow down. This means that the onus is on their coders to diffuse the Difficulty Bomb ASAP to avoid a potential catastrophe.

The problem is that once the Difficulty Bomb enters the blockchain, it makes the puzzles even more challenging to solve, rendering the mining process near impossible. In fact, Ethereum’s developers have named this event the Ice Age.

Will the merger help Ethereum to dominate the crypto market?

The Difficulty Bomb aside, if things go well with the merger, there is great promise that Ethereum will end up ruling the crypto market. The merger was always on the cards because it was the only way Ethereum could move to the next level.

The merge signifies the move away from proof of work to proof of stake for altcoins. This summer, the Ethereum developers are set to finish their work on Proof-of-Stake (PoS), which has been in development for almost seven years.

This move will mean Ethereum will become the key to the future of PoS and will be a game-changer for Ethereum investors and the ETH community.

Expectations and addressing concerns

If there has been one strong criticism of Ethereum so far, the power consumption of the blockchain is needlessly high. By changing the consensus mechanism to a bundled certificate, the drain on power and hardware requirements will be much reduced.

This means energy consumption will be reduced, entry barriers will be lowered, and efficiency levels will increase. It will also mean that the low power altcoin network will be even more secure.

The merge with its new beacon chain, which will become the foundation for the Ethereum 2.0 project, will integrate with sharded coins. The move will allow them to divide into multiple chains, which will improve transaction speed.

Predicted boost for Ethereum

As the merge approaches, the Ethereum Triple Halving report predicts a significant rise for the cryptocurrency. An Ethereum company research analyst explained that as they move from a proof of work to a proof of stake process, it could act as a catalyst to boost Ethereum.

For example, it could see bitcoin being halved and causing a breakout in the market for Ethereum altcoin. It is fully expected that Ethereum’s price will increase over the medium to long term.

Ethereum has long been one of the most popular cryptocurrencies around the world. It won over the hard-earned trust of users and investors, so the launch of Ethereum 2.0 in August is expected to take the cryptocurrency to the next level to benefit both users and investors.

The changes in the algorithm should bring positives such as more scale and reliability, which will help Ethereum in its battle with bitcoin to dominate the cryptocurrency market. The merger will see Ethereum being made future-proof, which is exactly what investors want to see.

The merger is predicted to boost the value of Ethereum altcoin to a level that will surpass bitcoin and lead it to become the most valuable cryptocurrency in history. Investors are waiting with bated breath to see what will happen this summer – just like the rest of the world!

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