Crypto: When is the Ethereum Merge date? Here are 5 things you should know about the upgrade

by | Sep 12, 2022 | Stock Market

The crypto industry is closely watching Ethereum’s “Merge,” a highly anticipated upgrade that is expected to be completed around Thursday, Sept. 15. If successful, the upgrade is anticipated to lower the blockchain’s carbon footprint, reduce ether supply and potentially have a profound impact on the whole crypto ecosystem. Here are five things you should know:

What is Ethereum Merge?  The Merge is a plan to transition the Ethereum
blockchain from proof-of-work to proof-of-stake, with a goal to slash the blockchain’s energy consumption and lay the ground for it to be more productive in the future. A few questions first. Why is it called the Merge? To make the transition happen, Ethereum’s Mainnet, or its primary execution layer, will be merged with Beacon chain, a proof-of-stake consensus layer. What are proof-of-work and proof-of-stake? Both are consensus mechanisms that aim to secure blockchain and to prevent bad actors from cheating. Under the proof-of-work mechanism, miners verify new transactions on the blockchain by solving complicated mathematical puzzles. This usually requires extensive energy consumption, which has made the crypto industry vulnerable to criticism. The Yale Environmental Review in 2019 equated acquiring Bitcoin to “mining diamonds.” Both Bitcoin
and Ethereum currently operate under the proof-of-work mode.  Under proof-of-stake, blockchain transactions are validated by coin owners, who stake, or lock up their cryptocurrencies with the blockchain. As it doesn’t require much use of electricity, the mechanism has been pitched as a more environmentally-frie …

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