The major event the crypto industry has been waiting for has finally arrived. It is an Ethereum "merger". Proponents say it has the potential to boost crypto prices in the long run and significantly change the future of cryptocurrencies. So what is Ethereum merge and why did the Ethereum merger happen?
What is Ethereum Merge?
This Ethereum upgrade, or so-called "merge," changed the way new crypto transactions are made on the blockchain.
Previously, like the Bitcoin blockchain, the Ethereum blockchain ran on a proof-of-work model where nodes (computers that are part of a more extensive network) competed against each other to solve complex mathematical problems. Those who succeed can mine the next block of transactions to create new coins.
With this upgrade, Ethereum switched to a Proof-of-Stake model, a more energy-efficient and environmentally friendly system. This involves selecting nodes via an algorithm that favors nodes that hold more of the network's currency. In other words, their "share " in the network is rewarded by computer performance, which is rewarded by proof-of-work systems.
When did the Ethereum merge take place?
After many delays, the merger finally took place in the early hours of September 15, according to a tweet by Ethereum co-founder Vitalik Buterin.
Why did the Ethereum merge happen?
Proponents say the move will allow the Ethereum network to reduce energy consumption by about 99%. The proof-of-work model used by the Bitcoin network is much more energy-intensive than the proof-of-stake model. The negative environmental impact of cryptocurrency trading has been a concern for many cryptocurrency commentators and advocates alike. Ethereum's move to a less energy-intensive Proof-of-Stake is seen as a major advancement. It will also set the groundwork for other aspects of the network's roadmap, like making transactions are more efficient.
