Ethereum Merge Set Sail: A New Era For The Blockchain Network

The internet has been buzzing about the much anticipated Ethereum Merge since June this year. The Massive overhaul has finally come to life, moving the digital mechainary at the core of the network positively. The network is considered to be now, a more efficient system, after years of rigorous development and delay.

The overhaul was no small feat. It is not an easy thing to swap one method of running an entire blockchain for another. This Merge swapped the Proof-of-work method for the  Proof-of-stake method.

Justin Drake, a researcher at the non-profit Ethereum foundation, expresses his opinion with a metaphor, before the Merge. He says It’s like switching an engine from a running car. The fact the blockchain network was still completely operational while the Merge happened, shows just how ardent it is. “l like to think of it as kind of like the switch from gasoline to electric”, Justin added.

Will This Pay-off For Ethereum?

From the outlook of things, the payoff is potentially huge. Ethereum should now consume 99.9% or so less energy. From an energy cost perspective, it is similar to Finland suddenly shutting off its power grid – one estimate. 

The developers at Ethereum, claim that this will make the network more secure and scalable too. A network that houses a $60 billion ecosystem of crypto exchanges, lending companies as well as NFTs marketplaces.

It is interesting to know that this switch was put in place from the start. However, the transition process ended up becoming really complicated. As time went by, it became an endeavor so risky, many didn’t believe it would happen. 

What Happened During The Ethereum Merge?

When the Merge officially started at 2:43 AM EST, about 41,000 people were tuned in on youTube. They connected to an “Ethereum Mainnet Merge Viewing Party.” They watched vehemently as key metrics trickled in, suggesting that Ethereum’s core systems had remained intact. After around 15 long minutes, the Merge officially finalized. This implies it is a success.

Furthermore, the update which has since relied on the energy-intensive process of crypto mining, has been closely watched. Especially by crypto-investors who trade with Binance, enthusiasts, and skeptics due to its expected impact on the entire Blockchain industry.

The investor and billionaire owner of the Dallas Mavericks basketball team, Mark Cuban, has his opinion on The Merge. The billionaire stated in an interview that he will be watching the Merge with interests like everyone else. He went on to point out that this move might make ETH the network’s native token, deflationary.

In addition, in the minutes immediately following the Merge, ETH whose current market value near $200 billion, was down. The second-largest cryptocurrency token was down by 0.4%, trading at $1,632 in the last 24 hours. Even those who use platform like eToro were surprised that the merge took such a toil 

Goodbye To Miners  

Ethereum, introduced in 2015, expanded upon the core concepts of Bitcoin with smart contracts, using computer programs that effectively use blockchain as a global supercomputer. This innovation became the essential ingredient for DeFi and NFTs.

The Merge retires Ethereum’s proof-of-work system, where crypto miners compete to write transactions to its ledger – and earn rewards for doing so – by solving cryptographic puzzles.

Picture massive warehouses lined with rows of computers stacked on top of one another like shelves of books at a university library – each computer hot to the touch as it strains to pump out cryptocurrency. But not anymore for Ethereum.