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A Successful Proof-of-Stake Merge For Ethereum, Experts Praise

source-logo  cryptoknowmics.com 15 September 2022 05:13, UTC

The largest-ever upgrade to Ethereum, infamously known as The Merge, recently went into effect, and experts in the field are hailing it as a game changer for the entire cryptocurrency industry. All indications point to the success of the so-called merging, which aims to reduce the cryptocurrency's energy use by more than 99%. The Ethereum network upgrade significantly changes how the blockchain secures its network and validates transactions. https://twitter.com/VitalikButerin/status/1570306185391378434

Proof-of-Work (PoW) To Proof-of-Stake (PoS)

The method used by cryptocurrencies like Ethereum and Bitcoin to create new coins is frequently criticized. Before the merger, each blockchain had its extensive network of miners operating specialized computers on every continent, crunching mathematical equations to verify transactions. Known as the Proof-of-Work (PoW) consensus, it consumes a lot of energy and is one of the sector's most well-known targets for criticism. But after the upgrade, Ethereum switched to the Proof-of-Stake (PoS) algorithm, which replaces miners with validators. Validators use their existing Ether cache rather than operating enormous banks of computers to validate transactions and create new tokens. It uses much less power than mining, and according to experts, it will strengthen the protocol's sustainability and security.

Ethereum (ETH) Launch In 2014

Vitalik Buterin created Ethereum while he was just 19 years old. In Miami, during the North American Bitcoin Conference in January 2014, he introduced Ethereum. Since its launch, Ethereum has experienced exponential growth and now ranks second only to Bitcoin in market capitalization, making up 18% of the entire cryptocurrency market. Users could mine ETH and run smart contracts thanks to Ethereum's first phase, Frontier, which had two key goals. Ethereum has continuously offered improvements in stages since its introduction. The phases that Ethereum went through to launch Ethereum 2.0 realistically were Homestead, Metropolis, Byzantine, Constantinople, Serenity, and now Merge.