Ethereum Merge Goes Live: What this Means for Its Network Consumption
Login

Ethereum Merge Goes Live: What this Means for Its Network Consumption

Estimated Reading Time: 3 minutes
Article Rating:
Based on 1 vote
Login to rate this article.

Azeez Mustapha

Updated:


The Ethereum blockchain has successfully pulled through its most ambitious software upgrade in its history, the Merge, which would see the network record a dramatic decline in energy usage, according to CEO Vitalik Buterin.

The Ethereum Foundation revealed that the new validation system will consume 99.95% less energy than its previous Proof-of-Work mechanism. The upgrade also revamps how transactions take place on the network and how new Ether tokens are minted, which could give Ethereum leverage in its bid to surpass rival blockchain Bitcoin.

Commenting on the event, Richard Usher, head of over-the-counter trading at BCB Group, noted: “We believe this is a significant moment that will lead to ETH outperforming the broader crypto market for some time.”

Most blockchains consume significant amounts of energy in their mining operations and have come under criticism by environmentalists and some investors. According to Digiconomist, a single Ethereum transaction pre-Merge consumed the same amount of power an average American household used in a week.

The upgrade means the ETH blockchain switches from the energy-hungry PoW consensus mechanism to a greener Proof-of-Stake system, where individuals and companies act as validators and stake their ETH as collateral to earn newly minted tokens.

Ethereum CEO Tweets About Energy-Consumption Reduction Following the Merge

In the run-up to and after the Merge, Ethereum co-founder Vitalik Buterin has posted a barrage of tweets. Following the successful Merge between the Ethereum mainnet and the Beacon Chain, Buterin wished his 4.3 million Twitter followers a “Happy Merge”, adding, “This is a big moment for the Ethereum ecosystem.”

Buterin also tweeted a quote from Ethereum researcher Drake Justin, who claims that “the Merge will reduce worldwide electricity consumption by 0.2%.”

According to Marc Arjoon, Ethereum research analyst at CoinShares, the improvement of Ethereum’s environmental, social and corporate governance (ESG) credentials “would be good for regulatory-driven institutions that want to start to explore the Ethereum ecosystem.”

 

You can purchase Lucky Block here. Buy LBLOCK

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Learn to Trade

Never Miss A Trade Again

step 1
Signal Notification

Real-time signal notifications whenever a signal is opened, closes or Updated

step 2
Get Alerts

Immediate alerts to your email and mobile phone.

step 3
Entry Price Levels

Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.

Share with other traders!

telegram
Telegram
forex
Forex
crypto
Crypto
algo
Algo
news
News