The Merge: crypto history in the making
The Merge is coming tomorrow, after years of waiting!
Ethereum will transition from the proof-of-work (PoW) consensus mechanism to Proof-of-Stake (PoS), in what is the biggest event ever in the blockchain and crypto space. This transition will:
- Reduce Ethereum energy consumption by 99.5%
- Improve security and decentralization of the network
- Open for future scalability of the network
One of the biggest misconceptions is that the Merge will solve Ethereum’s scalability issues, which it doesn’t. However, it opens the way for future updates which could increase the scalability of Ethereum to the goal of 100k TPS (transactions-per-second) from ~14 now. This is already happening with Ethereum scaling solutions, such as layer 2 optimistic and ZK rollups. Further scaling is bound to happen through sharding.
The transition to proof-of-stake (PoS), and energy consumption reduction, also open Ethereum to the attention of many financial institutions and asset managers which were previously held off by ESG considerations. For instance, Bank of America, is looking at the opportunities to stake ETH and generate a higher-quality yield. Overall, we could see a huge boost in institutional adoption, if things go well.
Discover how Ethereum scaling solutions are the future next step in the roadmap to bring the network to its final vision and impact bilions of lives.
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