In this article, I will share with you everything you need to know about Ethereum D-5 and the merge.
The announced time for the implementation of The Merge is fast approaching. Less than a week after one of the biggest events to occur in the cryptocurrency market and even in the history of the internet, it is important that we come back to the details of this change for the blockchain. Ethereum.
The Merge, also known as the "merger", is a large-scale update to the Ethereum cryptocurrency. This update enshrines Ethereum's transition from a Proof of Work (PoW) system to a Proof of Stake (PoS) system.
If the event is causing such a stir in the world of cryptocurrencies and beyond, it is not only because it concerns the second cryptocurrency in the world in terms of value. It is also because its implementation could have very significant positive consequences for the planet in order to reduce the energy consumption of the blockchain by more than 90%.
What is Proof of Work and Proof of Stake?
PoW and PoS are responsible for ensuring the secure operation of blockchains. However, their similarities end there, as these two systems differ greatly in how they perform this role.
The mode of operation of the Proof of Work system is based on the work of several individuals called miners. The latter, using their computers, compete to solve mathematical equations. As soon as an equation is solved, a block is created on the blockchain, and the owner of the computer who solved the equation also receives a reward in the form of tokens.
As for the Proof of Stake system, it's a complete contrast to the old system. Here, a group of computers operated by several individuals is used to solve a problem. However, only one of these individuals will be chosen at random to do so. He will thus be responsible for creating a block and will earn tokens at the same time.
If the PoW system obliges several competitors to compete to be rewarded, the PoS system gives a chance to each candidate to accomplish his mission to be rewarded.
Note, however, that the PoS system that Ethereum wants to implement will not be for everyone. Indeed, to integrate the PoS system of Ethereum and obtain the title of validator, each competitor will have to have at least 32 ETH regardless of whether he is alone or part of a group of Ethereum holders.
What will be the effects of The Merge project on the Ethereum network?
Since Ethereum has built itself a very large ecosystem on which a multitude of projects depends, fears have naturally formed at the announcement of this radical change in the way its blockchain operates. Several figures in the cryptocurrency world have already expressed their concerns about the consequences of the future update.
However, the Ethereum Foundation has already made it clear many times: The Merge project will have no impact on ETH tokens or even on the blockchain. As long as the merger process occurs without any issues, Ether, which is the native cryptocurrency of Ethereum, and all other Ethereum-backed tokens will remain unchanged.
Will the Ethereum update be good for the climate?
The world of crypto-currencies is regularly criticized for the enormous energy expenditure it entails. The Proof of Work system is largely to blame for this reputation, as the process of mining a single token of a cryptocurrency consumes a lot of energy.
With Ethereum's current setup, its validators need large amounts of electricity to keep the network secure. Electricity is supplied largely by fossil fuel power plants.
This is one of the reasons that motivate the project managers to implement the update. In fact, switching to the Proof of Stake system will reduce this energy consumption by 99% or more. A figure that is no small feat when you consider that the unique mining of Ethereum emits as much carbon dioxide in a year as Switzerland, according to calculations of a study.
Caution is required
Although The Merge project is celebrated by many as one of the biggest events in the cryptocurrency market since its inception, it does not only bring benefits.
This project also represents a godsend for scammers who will not fail to use the event to their own advantage. This is all the more the case now given that the market is still the victim of consecutive crashes which are causing investors to lose hope.
The majority of holders of cryptocurrencies like Ethereum do not necessarily have advanced knowledge of this world. They neglect and therefore ignore a lot of information about this type of event and are easy prey for scammers.
Do not click on links that seem strange to you, no administrator or even manager will contact you with this change. You don't have to take any steps to keep your ETH in your crypto wallet.
Finally, remember that The Beacon Chain will technically arrive on September 6, but The Merge itself should happen between September 10 and 20.
With the arrival of The Merge, other projects are on the rise, such as Ethereum Classic as a fork or Polygon as an Ethereum Killer.
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