Author: Herbert Kelly
The much-awaited Ethereum Merge, which analysts predict might boost crypto prices and substantially alter the future of cryptocurrency, eventually took place on Wednesday night, September 14, 2022.
The Ethereum network, which enables developments in the cryptocurrency industry, such as non-fungible tokens (NFTs), has undergone an upgrade called The Merge. Additionally, The Merge promises to increase user interest and reduce Ethereum’s energy usage.
This article examines the Ethereum Merge, including what Bitcoin Maxis like Jack Dorsey think of it and what it means for cryptocurrency investors.
What Is the Ethereum Merge?
The Merge will alter how new cryptocurrency transactions occur on the Ethereum blockchain.
Before, the Ethereum blockchain operated on a proof of work (PoW) system, which pits nodes – computers connected to a vast network – against one another to decode challenging mathematical puzzles. After that, successful people can mine the transactional block to generate new coins.
A more environmentally friendly and energy-efficient system, proof-of-stake (PoS), was introduced to Ethereum as part of The Merge. This technique uses ‘validators,’ who use their cryptocurrency as security to create new blocks in place of miners.
As a result, an algorithm selects a person at random to authenticate or confirm a transaction rather than individuals racing to be the first to solve the same mathematical puzzles to produce new blocks.
In other words, the amount of “stake” you make will determine your likelihood of being selected as a validator. People are now required to pool their digital currency to increase their chances of being chosen. The rewards are then distributed according to the amount contributed by each person.
What Does ‘Bitcoin Maxi’ Jack Dorsey Think of The Merge?
Block CEO Jack Dorsey indicated his feelings towards The Merge in a tweet he posted on Wednesday. He shared a blog post written by fellow Bitcoin maximalist Scott Sullivan, who referred to all areas outside the top cryptocurrency as “shitcoin-land.”
Sullivan argues that Bitcoiners should pay attention to Ethereum’s transition to PoS to grasp how PoS differs from Bitcoin’s existing PoW structure in his blog post titled “A Bitcoiner’s Guide to Proof of Stake.”
As for the narrative war, Sullivan continued, “I think Bitcoiners should be ready to hit back once Ethereum cleanses itself of the wasteful and unpleasant consequences from PoW.”
The blog argues that PoW is preferable to PoS based on several concepts, including decentralization, information security, and a reward system.
In his conclusion, Sullivan advises people to carefully consider the tradeoffs between PoW and PoS if they wish to live in a society where their money will retain its worth for a long time without fluctuating at random.
What Does The Merge Mean for Investors?
You probably don’t need to do anything if you own crypto assets. However, this could provide a more eco-friendly choice for people interested in crypto and may impact crypto values.
According to the Ethereum foundation, you are not required to do anything if you own ether, Ethereum’s blockchain native cryptocurrency. However, be wary of scammers. If a cryptocurrency wallet or exchange offers recommendations or instructions, double-check that the notifications are coming from those sites.
Ethereum officially adopted the proof of stake (PoS) mechanism on September 14. The Merge, Ethereum’s upgrade to the PoS system, promises to be more environmentally friendly, attracting eco-conscious investors. Following the announcement of The Merge, Jack Dorsey turned to Twitter to share a blog post written by fellow Bitcoin maximalist Scott Sullivan. Sullivan discusses how the PoW system – Bitcoin’s current mechanism – is superior to the PoS method in his blog, among other things.