‘Ethereum Merge’ completed successfully today: Here is everything you need to know about merger

Second biggest blockchain network after Bitcoin, Ethereum has completed the transition from proof-of-work to proof-of-stake. One of the biggest developments in the crypto world which was dubbed as “merger” happened on September 15 around 1:30 pm as per IST. The entire world was keenly waiting to see the merger.

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Announcing the big feat of Ethereum merger, Vitalik Buterin, the founder of Ethereum, posted a tweet on its official twitter handle and wrote, “And we finalized! Happy merge all. This is a big moment for the Ethereum ecosystem. Everyone who helped make the merge happen should feel very proud today.”

Here is everything you need to know about the merger:-

What is Proof-of-work & Proof-of-stake?

Untangling the jargons related to crypto world, let’s understand each of them one by one. Both of them are algorithms used to allow users to add new crypto currency transactions or block for keeping a record on a blockchain network.

Under the proof-of-work method, the validators (one who validates the transactions) need to solve complex mathematical puzzles. Powering computers needs massive amount of energy and it has to be done at every transaction. Therefore, the method was energy-guzzling.

On the other hand, under the proof-of-stake, validators need to have a substantial stake in the blockchain to validate transactions. It means that Ethereum users will have to make substantial amount of investment in the cryptocurrency in order to validate transactions.

Why is it happening?

The older method – Proof-of-work takes massive energy to power huge computers which are used by users to authenticate transactions. While new method –Proof-of-stake, according to some reports, takes 99% less energy as it doesn’t need to solve complex mathematical problems in order to authenticate. Eventually, Ethereum is making itself eco-friendly and planet saving blockchain system.

Ethereum founder Vitalik claimed that the merger would reduce worldwide electricity consumption by 0.2%. Blockchain has long been condemned for polluting environment and wasting massive amount of energy.

How will it affect Ethereum users and potential investors?

Sooner or later investors and users will see good benefits down the line. More users may add eventually from quicker transactions and reduced costs, which may have an impact on the price of ether, the platform’s native cryptocurrency that investors use to conduct transactions.

Besides, users need to have a certain amount of Ethereum to authenticate the transactions which means hackers won’t easily come on the blockchain network. They have to invest first to hack the network. It will make the network safer and strong. Eventually, it forces Bitcoin to take measures like this.

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