When is the Ethereum Merge date? Here are 5 things you should know about the upgrade

- Advertisement -

The crypto industry is closely watching the “merge” of Ethereum, a highly anticipated upgrade that is expected to be completed around Thursday, September 15th. If successful, the upgrade is expected to reduce the ether supply, reducing the carbon footprint of the blockchain. And potentially have a profound impact on the entire crypto ecosystem.

- Advertisement -

Here are five things you should know:

What is Ethereum Merge?
- Advertisement -

Merge is a plan to convert Ethereum ETHUSD,
From proof-of-work to proof-of-stake, with the goal of reducing the energy consumption of blockchain and laying the groundwork for making it more productive in the future.

First few questions. Why is it called merge? To carry out the transition, Ethereum’s mainnet, or its primary execution layer, will be merged with the Beacon Chain, a proof-of-stake consensus layer.

- Advertisement -

What are Proof-of-Work and Proof-of-Stake? Both are consensus mechanisms aimed at To secure the blockchain and prevent bad actors from cheating. Under the proof-of-work mechanism, miners verify new transactions on the blockchain by solving complex mathematical puzzles. This usually requires extensive energy consumption, which has left the crypto industry vulnerable to criticism. Yale Environmental Review Equals Bitcoin Achieving in 2019 “Mining Diamonds”. both bitcoin BTCUSD,
And Ethereum currently operates under proof-of-work mode.

below Proof-of-stake, blockchain transactions are validated by coin owners, who stake or lock their cryptocurrencies with the blockchain. Since it does not require much use of electricity, the mechanism has been touted as a more eco-friendly alternative to proof of work, and is currently used by many of Ethereum’s competitors, such as Binance Chain, solana solusd,
cardano adausd,
DOTUSD Polka Dots,
and Avalanche AVAXUSD,

Why is merge important for Ethereum?

According to the Ethereum Foundation, the upgrade is expected to make Ethereum more green, thereby reducing the energy consumption of the blockchain by an estimated 99.95%. According to Digiconomist, currently, a single Ethereum transaction requires electricity equivalent to the consumption of an average American household in 6.5 days. Ethereum’s total energy consumption almost standing on 78.6 TWh per year, equivalent to Chile’s electricity consumption, and blockchain’s carbon emissions equal to Hong Kong’s.

Meanwhile, the merge According to the Ethereum Foundation, new issuances of Ether are projected to reduce by 90%. Ethereum co-founder Vitalik Buterin, in july said That once the merger is complete, the issuance of Ether will be governed by an equation that depends on the amount of Ether stake, rather than being set at five million annually.

What’s more, Merge This could pave the way for Ethereum to become more scalable, laying the groundwork for future blockchains to become faster and cheaper.

What does “merge” mean for the rest of the crypto?

Ethereum Hoping to be the first blockchain To transition from proof of work to proof of stake anytime. Thus, the entire crypto industry is watching to see if it will face significant technical challenges to successfully implement the merge.

Meanwhile, according to DeFi Lama data, Ethereum is the largest blockchain for decentralized finance or DeFi, with over $35 billion in value locked on it. Should the merge be implemented smoothly, it could affect the entire Ethereum ecosystem.

some hope According to data from CoinDesk, the price of ether will rise in a “merge”, although the crypto is down 53% year-on-year. Analysts at research firm FSInsight expect ether’s market cap to surpass that of bitcoin over the next 12 months, as new supplies of ether dwindle and selling pressure from miners ends., According to a recent note. According to data from CoinMarketCap, Ether has a market cap of $202 billion, while that of Bitcoin is around $411 billion.

Will Ether Price Fall After ‘Merge’ in September?

when will it be?

In July, Tim Beiko, who organizes the lead developer call for Ethereum, estimated Merge to launch in the week of September 19. However, the timeline is subject to change, Biko said.

Ethereum’s Buterin tweeted on August 12 that the merge is likely to happen around September 15, although the exact date depends on the hashrate, or the total networking power contributed to the network.

On August 10th, Ethereum successfully completed a merge with its test environment network called “Goerly” through its final dress rehearsal. The Bellatrix hard fork, which marks the beginning of the merge, was activated on 6 September.

Recently, Google added a countdown timer for the Ethereum merge, which is expected to be completed at around 2:20 PM Eastern time on September 15th depending on the difficulty of the merge and hashrate.

How are traders preparing?

Traders have been busy setting themselves up ahead of the merger, especially after Ethereum miner Chandler Guo proposed to “hard fork” the Ethereum blockchain in late July, Or splitting the chain into duplicate versions based on a proof-of-work consensus mechanism. Some miners vowed to support Guo’s proposal, as the merge would make mining obsolete. It is not clear how much popularity the new series could get.

However, if the hard fork is executed, all Ether holders are expected to receive the same amount of new tokens on the forked chain, which usually happens during the fork. As a result, some traders are borrowing Ether to capture any profits.

In general, institutional interest is moving ahead of the merger, according to data from Blockchain, with the number of addresses holding more than 100 Ether, 1000 Ether and 10,000 Ether growing rapidly.

Hear from Mike Novogratz here Best New Ideas at the Money Festival September 21 and September 22 in New York. The Galaxy Digital CEO has ideas on how to navigate the crypto winter.

Credit: www.marketwatch.com /

- Advertisement -

Recent Articles

Related Stories