The Merge will lead to the transition of Ethereum to an energy-efficient mechanism of proof-of-stake (PoS) from the current proof-of-work (PoW), which consumes more power for transactions.
Edul Patel, CEO and co-founder, Mudrex, said that the ‘Ethereum Merge‘ is the most awaited event in the crypto-verse lately. The dominance has been on the rise after the announcement of Merge, since last month and a half.
The upgrade is expected to reduce Ethereum’s energy usage by over 99 per cent, taking ETH off the government’s sight that is looking to sanction duties on crypto mining due to high energy consumption, he added.
Experts believe that the announcement from the developers will keep buyers active, and prices of Ethereum may move higher in the near term. The development and upgrade would benefit the organisation too, they added.
The Merge is great news for all blockchain users and businesses. It is a significant step in the right direction, said Ujjawal K Panchal, co-founder and CTO, MemeChat.
“Increased stakes and interest may lead to additional funding for blockchain research,” he said.
It is a two-step process. The first step is a network upgrade, followed by the execution layer’s transition from PoW to PoS mechanism, the foundation explained, adding that the Merge has been scheduled for the Ethereum mainnet.
Proposed by Vitalik Buterin in 2013, Ethereum is a blockchain-based software platform that can be used for sending and receiving value globally with its native cryptocurrency, Ether, which is the second-biggest digital token.
Ethereum is a decentralized open-source blockchain system that features its native crypto token, Ether. ETH works as a platform for numerous other cryptos, as well as for the execution of decentralized smart contracts.
However, not everyone is too pleased or optimistic over the mega update in Ethereum. It is to be noted that it is a missed opportunity as the basic notion remains the same, said other experts.
Pratik Gauri, Founder and CEO, 5ire, said it is laudable that the blockchain 1.0 and blockchain 2.0 networks are doing away with the waste of electricity caused by the PoW consensus algorithm.