Ethereum upgrade makes it ultrasound money of the future
Ethereum Upgrade
Modified Date:- Published Date:-Categories: Ethereum
Ethereum upgrade makesit ‘ultrasound money’ of the future
The upgradeof the Ethereum network, known as the Merge, took place at 2:45 am EST,a landmark that the cryptocurrency world has awaited for more than five years.
The upgradewill fundamentally alter both the creation of ETH, the second-largest digitalcurrency, and the validation of transactions on the Ethereum network, and isexpected to change the way businesses view the cryptocurrency.
Before themerge, ETH was produced through “mining,” an energy-intensive processthat used computers to solve mathematical equations. With the shift from theproof of work system to the proof of stake (PoS) method, people andorganisations pledge significant sums of their ETH instead of generating newETH.
“Theshift to proof of stake will also signal a new era in the competition amongblockchain ecosystems. The merge will solidify Ethereum’s dominance and shiftthe basis of competition to the Layer 2 networks that exist to help scale upEthereum. Layer 2 networks will be needed to handle a new wave of privacyapplications and high-volume transactions in supply chain and finance,” Brodysaid.
Scaleand security
Expertspointed out that given the importance of ESG (environmental, social andgovernance) business practices, it was critical for the Ethereum communityto move to the PoS system to avoid potential resistance to adoption by largecompanies, governments, and R&D organisations.
The Merge isexpected to be positive for Ethereum users, developers, crypto assetinvestors, and the broader ecosystem. It will, by some estimates, reducethe carbon footprint of Ethereum by 99 percent and clear the decks for Ethereumcore developers to focus on other network upgrades including improvements toscaling, security, and usability.
The shift toPoS not only mitigates climate concerns, it also reduces the barriers for mainstreamadoption of Web3, which is envisioned as a decentralised version of theinternet incorporating the use of blockchains, cryptocurrencies and NFTs.
The Ethereumupgrade could be the opportunity of a lifetime with the possibility of theinflation rate of ETH supply being decreased by 90 percent. This massivedecrease in the issuance of ETH is dubbed as the “triple-halving.”
“With thepromise of a decrease in issuance and the continued burn of ETH supply, it hasthe potential to make ETH the ultrasound money of tomorrow,” said WalkerHolmes, vice president of Meta Tope. “With great opportunity comes great riskand even more speculation. The consensus of the market is weighted in favour ofthe ETH merger being successful. However, large-scale issues with thetransition to PoS could be catastrophic for the short-term outlook for ETHprice.”
Ethereum, the second largest cryptocurrency after Bitcoin and one of the most well-known blockchain projects in the world, celebrates the anniversary of its exodus from Proof-of-Work to Proof-of-Stake. The upgrade of Ethereum was due to take place at 2:45 am EST, a milestone which has been awaited for more than five years.