Cryptocurrency has been continuously evolving over the past few years. With that, new features are also appearing every day. In light of that, Ethereum released one of its biggest moves–the merge. One of its claims is that it will considerably increase crypto values in the long run and impact the future of cryptocurrency. What is it and is it a great move for the platform?
What is the Ethereum Merge?
This Ethereum upgrade, or “Merge,” as it’s known, altered how new crypto transactions are processed on the blockchain. The Merge eventually took place in the early hours of September 15 after several delays.
Previously, the Ethereum blockchain, like the Bitcoin blockchain, operated on a proof-of-work basis, in which nodes competed with one another to solve complex arithmetic problems. Successful miners can then mine the following block of a transaction and generate new currency.
The upgrade moved Ethereum to a proof-of-stake paradigm, which is more energy-efficient and environmentally benign. It entails nodes being chosen by an algorithm that prefers nodes with more of a network’s currency.
In other words, their “stake” in the network is rewarded over computing power in the proof-of-work method.
What caused the Ethereum Merge?
According to supporters, the change allows the Ethereum network to lower its energy consumption by up to 99%.
The Bitcoin network employs the proof-of-work paradigm, which consumes significantly more energy than the proof-of-stake approach. Many cryptocurrency critics and supporters have been concerned about the environmental impact of crypto transactions, and Ethereum’s change to the less-energy-intensive proof-of-stake protocol is seen as a big step forward.
It will also lay the framework for other aspects of the network’s roadmap, such as improving transaction efficiency.
Effect of the Merge on its users and their holdings
If you own crypto assets, you probably don’t need to do anything. However, this could provide a more ecologically friendly choice for consumers interested in cryptocurrency, and it could have an impact on cryptocurrency values.
According to the Ethereum Foundation, if you own ether, the native cryptocurrency of the Ethereum blockchain and the second most popular cryptocurrency after bitcoin, you are not required to do anything. However, be wary of scammers. If an application, cryptocurrency exchange, or cryptocurrency wallet offers you instructions or recommendations, make sure the alerts are coming from those platforms, according to the Ethereum Foundation in a blog post.
“If you’re a user and you just want to send some Eth from one person to another or use a DeFi app, it really doesn’t have any kind of meaningful difference for you,” says Chris McCann, a Race Capital partner.
If you are a socially aware investor who is concerned about the environmental impact of cryptocurrency, this may be excellent news for you.
What does the Ethereum Merge mean for the price of the tokens?
Following an outstanding few years that reached record-high values in November, cryptocurrencies such as bitcoin and ether have recently witnessed large losses, along with other financial assets such as stocks. Bitcoin is down about 58% since the start of the year, and ether is down almost 60%.
However, this Merge has the potential to destabilize the price of ether, which has been surpassing bitcoin in recent recoveries.
Fans of cryptocurrency, particularly the Ethereum network, are expecting that the change would help improve the price of ether. Before the event, Alex Tapscott, managing director of Ninepoint Partners’ digital asset group, told that a successful merger should put a strong bid under the price of ETH and enable it to resume its upward path.
We had the same approach to our PRV2 & PRVG which is why we merge it into PYDEX. We are hoping that we are able to serve more purposes with lesser tokens (variations). As an advocate of safer and greener crypto transactions, we always think of ways how we can reduce crypto conversions and transactions. Our pitch is to create a platform where you can do most, if not all, of your transactions. More like an all-in-one platform. Thus, we built the PYDEX platform. This is where users can convert, trade, buy and sell NFTs, and even withdraw their crypto holding, as fiat, using our Crypto debit card–the PrivacyCards.
As pPrivacySwap continuously progresses, we are aiming to answer most of the existing concerns we are seeing in the market, and we hope that by doing this, we could make the blockchain technology, a safer and more engaging exchange platform for everybody.
Come and join us now.