Ethereum Merge Explained: It is a network update to transition Ethereum from proof of work (PoW) to a proof-of-stake (PoS) consensus mechanism. Let's take a closer look.
Ethereum Merge Explained: What is It?
This Ethereum upgrade or "Merge," as it's being referred to, changed how new crypto transactions take place on the blockchain.
Previously, the Ethereum blockchain, like the Bitcoin blockchain, ran on a proof-of-work model, which involves nodes — computers that are part of a large network — competing with one another to solve complicated math problems. The successful ones are then able to mine the next block of a transaction and create new coins.
The upgrade transitioned Ethereum to the proof-of-stake model, which is a more energy-efficient and environmentally-friendly system. It entails nodes being selected via an algorithm that has a preference for nodes that hold more of a network's currency.
In other words, their "stake" in the network is rewarded over the computer power that's rewarded in the proof-of-work system.
When did the Ethereum Merge happen?
After many delays, the Merge finally took place during the early hours of Sept. 15, according to a tweet from Ethereum co-founder Vitalik Buterin.
Why did the Ethereum Merge happen?
Proponents say that the transition allows the Ethereum network to reduce its energy consumption by around 99%.
The proof-of-work model, which is what the Bitcoin network uses, requires far more energy than the proof-of-stake model. The negative impact on the environment of crypto transactions has been top of mind for many cryptocurrency critics and advocates alike, and Ethereum's shift to the less-energy-intensive proof-of-stake is viewed as a significant advance.
It will also set the groundwork for other aspects of the network's roadmap, like making transactions more efficient.
Ethereum Merge Explained: What is It? Why Did It Happen? - Hopefully, this article can help you to get some knowledge.
