The long-awaited Merge!
Ethereum and the long-awaited merge. What happened?
About 7 years after Vitalik Buterin talked about Ethereum's Proof of Stake transition, it has finally happened. Ethereum has successfully transitioned from the Proof of Work Ecosystem to the Proof of Stake Ecosystem.
But why is this so important? A brief summary: PoW uses miners and mining, which is very energy intensive. PoS uses validators, which reduces Ethereum's energy use by ~99% and also improves the security of the ecosystem.
This is a summary:
A huge step for the ecosystem!
Yet the most important aspect of the actual merge was the risk of catastrophic error during this software transition. With the scale, amount of money and number of people involved, it is a phenomenal achievement that this went almost flawlessly. With a direct block rate participation of ~99% (where ~60% is the guideline for success) you can speak of a very effective merge.
What can we expect from now on? The Roadmap.
With yesterday's hefty price drop, macro economic market pressures and sentiment, it will most likely take some time for the long-term effects of the merge to show up in Ethereum's price. Now the merge is finished, we have to give time so that the effects of the structural flow changes (structural demand instead of structural selling pressure) will actually be visible..
It is important to remember that the merge is a very important positive fundamental change, the most important one in the history of Crypto. What you saw yesterday is the effect of traders, the merge is an investment. A very important difference.
And in fact, this is only the beginning. The merge is step 1 of a 5-step Ethereum Roadmap to work on scalability, cost reduction, deflation, and decentralization. Also called the Surge, the Verge, the Purge, and the Splurge.
Each of these steps is a very important update in which the ecosystem is improved in a positive way.
The merge is not the end, it is the beginning!
To still keep this Friday related to Altcoins, here’s an update on Curve and what to expect.
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