Here’s what to know about the highly anticipated upgrade that’s turning the crypto operator green

Here’s what to know about the highly anticipated upgrade that’s turning the crypto operator green

top line

Ethereum, the blockchain that powers large swaths of the crypto ecosystem and supports the world’s second largest cryptocurrency, completed its transformational program upgrade Thursday, co-founder Vitalik Buterin announce On Twitter, a milestone in digital history could help the sector shake off its not-so-green reputation and pave the way for widespread adoption.

key facts

Ethereum completed an ambitious software update Thursday that connects it to another network and fundamentally changes how transactions are verified on the blockchain.

The overhaul, dubbed “merging,” shifts Ethereum away from a power-intensive proof-of-work mechanism that relies on crypto miners maintaining the network by solving complex mathematical problems.

The Ethereum Post-Merge will use a proof-of-stake mechanism, which eliminates crypto mining and requires “verifiers” to share their cryptocurrency for a chance to validate a transaction for a reward.

The more Ether accumulated, the higher the chances of winning, although all the Ether accumulated will yield a return.

can switch scale down Ethereum’s energy consumption is up to 99.9%, according to the Ethereum Foundation, something that would go a long way to helping the sector win over critics who argue that cryptocurrencies are environmentally unsustainable.

it was merging marked By partying all over the world and celebrated by Buterin, who Call It’s a “big moment” for the ecosystem.

main background

The Ethereum Merge consolidation has been in the works for years and was expected to be a hit in the crypto industry. It represents a milestone in the field’s short history and could change its course forward by addressing one of the most pressing concerns holding back popular acceptance, environmental impact. As it stands, Ethereum has a footprint in electric power on par with a small country and its annual usage comparable to Chile. Beyond energy, it is a wish The change will also increase the security of the Ethereum blockchain and eventually lay the foundations for faster and cheaper network development, which are also big problems. Upgrading could lead to greater institutional acceptance of Ether as well by removing some of the barriers investors face, Bank of America He said.

What to watch

no errors. Ethereum is one of the most used blockchains in the crypto space and any issues after the merger could have wide-ranging consequences. In addition to supporting the second largest crypto token, ether, many other crypto tokens are supported by Ethereum and other crypto products such as NFT will be affected. The complexity and scale of the project delay Completed several times.

Huge number

$193 billion. This is the market Capitalization of ether, making it the second largest cryptocurrency in the world. It makes up nearly 20% of the total cryptocurrency market. Bitcoin, which has a market capitalization of about $385 billion, continues to use a Proof of Work system and is widely criticized for its environmental impact.

in-depth reading

Hedge funds race to bet on the outcome of an Ethereum ‘merger’ (financial times)

First phase of integration of Ethereum, biggest thing in crypto since Bitcoin, goes live (Forbes)

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