The Ethereum consolidation is just around the corner. For years, “Ethereum 2.0” has been delayed until development has progressed far enough. After several successful tests, Ethereum will not use the Proof of Work mechanism in the future, but rather the Proof of Stake mechanism. In order to bring about this change, Ethereum must now fundamentally change the blockchain. You can find out everything behind it and how Ethereum 2.0 will continue here.
Why is the Ethereum blockchain changing?
Ethereum, like most early cryptocurrencies, was programmed to be Proof-of-Work (PoW). Proof of work is a concept of how transactions are validated. In addition to Ethereum, Bitcoin also uses Proof of Work. Due to a large number of new applications such as NFT, smart contracts, etc., PoW is no longer up to date for transaction processing. So you may have noticed in the past that Ethereum transactions are getting expensive and slow. In order to be able to process a large number of transactions, Ethereum must become scalable. This is done by changing the blockchain from PoW to PoS.
What does merge mean for ethereum?
For Ethereum, consolidation is essential. Without a blockchain update, Ethereum will gradually be overtaken by the new blockchain. Due to its low scalability, Solana and Cardano in particular were able to gain ground over Ethereum in the field of NFT and smart contracts. But new providers have also been created in the DeFi area, which have been able to meet user requirements faster than Ethereum. If Ethereum is to remain one of the biggest players in the crypto market, the merger must succeed.
When does integration come?
Integration takes place in several steps. Ethereum wants to complete the most important one on September 6, after several delays. The merger was actually supposed to take place in 2019. After several changes, September 16 was set, and now the date has been brought forward. However, the merger is not expected to take place after that. The merger should not be completed until the middle of the month. Thus, the strong price drops of the past few days are at the wrong time for Ethereum.
Will Ethereum go up after the merger?
In principle, a successful merger will be a positive signal for the entire crypto industry. Positive consolidation may lead to a short high. Experts believe that the Ethereum cycle could rise to $5,000 as part of the merger. On the contrary, a false start after the merger can plunge the entire industry into a bear market. In addition, Ethereum is likely to lose its leading role in the field of NFT, smart contracts, and DeFi for other cryptocurrencies in the long run.
Will the merge work?
Ethereum is preparing to make the biggest change in its history. Otherwise, the developers may have moved the integration process backwards. In addition, some tests have been conducted to ensure that Ethereum 2.0 works. For example, a large merger test called “Görli” was recently carried out. In this test, the Ethereum network switched from PoW to PoS. After this test was run without any problems, the consolidation date was set for September.
Want to buy cryptocurrency? Check out Coinbase, one of the largest crypto brokers in the world!
Would you like to learn more about future projects in the crypto industry? Then click here. Or visit our featured area so you don’t miss a thing!
Currently and for a very limited time, you can get exclusive access to the premium contention area for only €1 per day. Our moderators discuss current trends and topics with you and the community in up to 50 areas. NFTs, Metaverse, Play2Earn, chart analysis, trading ideas for day traders, swing traders, DEFI apps, WEB3, Terra Luna Ecosystem, Aavegotchi, Sandbox and much more.
For many of our members, one month sometimes feels like 12 months in a master class.
Don’t waste any time and book your access to Discord here today.
You may also be interested in this
More from Outlook
Powell’s speech causes markets to crash
Jerome Powell, President of the US Central Bank (Fed) left markets crumbling with his speech yesterday. We will show you in detail…