The countdown has begun for Ethereum’s The Merge update. The first phase of the update will take place today. So what is The Merge that will shake up the cryptocurrency world and eliminate the need for miners? Here’s what all crypto investors need to know.
The world’s second largest cryptocurrency Ethereum We have entered a very important turning point. The Ethereum community has completed the work for the update called “The Merge”, which it has been working on for months, and the first phase of this update will take place today. Alright The Merge What is it and why is it so important to the cryptocurrency world?
The most discussed feature of cryptocurrencies, to environmental pollution causing it. So much so that all cryptocurrencies, especially Bitcoin and Ethereum, cause huge energy consumption due to mining and block chains. For example, the amount of electricity consumed for transactions originating from Bitcoin is 150 terawatt-hours per year. This too 65 million tons of carbon dioxide means release into the atmosphere. This level is the same as Greece’s annual carbon dioxide emissions.
Ethereum’s The Merge update could radically solve the energy problem!
Cryptocurrencies like Ethereum and Bitcoin are currently a proof-of-work (PoWThey use a technique called . This system starts as a notification of the money transfer in a way that all users can see. This notification, which goes to the Ethereum network as a code, causes competition among miners. All miners try to decode after receiving this message, and only one miner achieves his goal.
In the next process, other users on the network examine this decoded code. After approval money transfer takes place. Here, PoW, which seemed very simple when we talked about it, was not efficient at all in terms of energy consumption. Ethereum’s The Merge update, on the other hand, reduced this energy consumption. reduce by 99 percent aims. If this update is successful, it will be a matter of time before there will be great innovations for Ethereum and the cryptocurrency world.
What does The Merge update aim for?
The Merge update, which Ethereum developers are working on, introduces a proof-of-work technique to a proof-of-stake (PoS) is intended to change to . This new technique does not require all network participants. So much so that a large amount of money has been added to the Ethereum network. Participants depositing collateral, they will be the only address of the verification process in the next process. Transfer transactions will only be verified by the collateral holders. If irregularities are found during this verification, the deposit to the entire guarantee will be seized. The Ethereum community believes that this will prevent fraud.
What if The Merge is successful?
The Merge update is of great importance for the cryptocurrency world. If this system is successful, it will be a huge challenge for other cryptocurrencies to switch to the PoS system as well. pressure will occur. As a result, there will no longer be a need to constantly operate the device. Because the transaction control will be done by users who can show collateral, not the graphics cards used in Ethereum mining. If expectations come true, performance improves, and Ethereum’s energy consumption really drops by 99 percent, other blockchains will surely switch to this system.
Energy consumption isn’t the only advantage of The Merge update. Update made will increase network efficiency. Transactions will be done faster and costs will decrease. Even the leaders of the industry, with this update, Ethereum’s Will get ahead of Bitcoin they are thinking.
Binance has stopped withdrawals as the update process begins!
Ethereum’s The Merge update will begin as of today and stages in case of to be continued. As such, Binance, the world’s largest cryptocurrency exchange, announced that it has made an important decision regarding Ethereum. In the statement made by the company, it is possible to make deposits and withdrawals for Ethereum (ETH) and Ethereum-based (ERC-20) cryptocurrencies in order to avoid problems during today’s update phase. will be suspended specified. This is nothing to worry about because once today’s phase of The Merge update is complete, deposits and withdrawals will be as before. to be continued.
Here is Binance’s statement on the subject:
Let’s come to the most important issue: So what awaits the investor and the miner?
Ethereum The Merge update news has seriously affected the price of the cryptocurrency. has increased. So much so that Ethereum (ETH) has gained over 6 percent in the last 24 hours. As such, the individual investor smiles. Moreover, it is thought that the rise will not be limited to this. The rise of ETH if all goes well, according to crypto analysts in full swing to be continued. At the moment, it is not possible to predict what will happen if the update fails.
The Merge will not yield very good results for ETH mine investors. Because, as we mentioned in the previous parts of our news; to miners with update there will be no need. However, there are different opinions on this matter. So that Ethereum developers can’t stand the pressure of miners and let them keep making money. an alternative method It is claimed that they will try to produce. However, these are not certain things. The fate of the miners will be determined in the future.
If the information we have explained above is ‘everything goes well’, we will encounter promises Let me point out. Even if the update is on its way, there is no guarantee that The Merge update will fulfill its promises.
Note: This content cannot be considered as investment advice.
Source :
https://www.sciencealert.com/worlds-second-biggest-cryptocurrency-to-make-radical-technological-shift