For this week it is expected that the update of the software of the blockchain of Ethereum, one of the greatest milestones in the history of cryptocurrencies and, especially, of the second best-known chain in the world.
The change, which seeks to reduce the large energy consumption of the blockchainis a measure that, according to the defenders, It will expand the possibilities of using technology to unimagined limits.
In parallel, it is expected that there will be a strong increase in the valuation of the main token of the chain, ether.
The update, recognized as “Merge” (Merge), will determine a drastic change in the way transactions are validated on the Ethereum blockchain and Ether tokens are created.
The new modality will consume 99.9 percent less energy, according to the Ethereum Foundationan organization that acts as the person responsible for the official communication of the network.
When will the Ethereum Meltdown happen?
The exact moment of the merger is not known, although it is estimated that it will be in a moment between September 10 and 20.
The most adjusted versions speak of September 15, but it must be taken into account that the event has been delayed other times before.
If the “Merge” is successful, Ethereum will move from a “proof of work” approval system to a “proof of stake” protocol.
In the first, the miners’ computers consume large amounts of energy validating transactions by solving complex mathematical formulas.
In the second, individuals and companies act as validators of transactions, using their ether as collateral, with the idea of being able to obtain more tokens.
Critics of “proof-of-stake” say it has a big problem: It overly centralizes control of the stake. blockchain and abandons one of the keys to cryptocurrencies: decentralization, something that continues to make Bitcoin the leading currency.
ethereum, The Merge and proof of stake
Ethereum is the second most important crypto after bitcoin, with a market capitalization of more than 200 billion dollars, according to Coin Gecko.
In the blockchain of Ethereum between 1 million and 1.6 million transactions are generated daily, compared to 200 thousand or 300 thousand of bitcoin.
The price of all cryptocurrencies fell in early 2022 and has not recovered.
The cause was based on the general decline in financial markets, which made investors target less risky assets.
On the contrary, in recent months the price of Ether has risen more than 50%, and it is estimated that this is due to the merger. Bitcoin, meanwhile, has not experienced major changes in the same period.
Now read:
The novel of the Metaverse: Ethereum
Crypto Crash Takes 5,000 Employees, But Marketing Investment Is Record
Like El Salvador, another Latin American country joins the crypto fever