Became. The long-awaited procedure for the merger of the Ethereum cryptocurrency has been completed. This marks a fairly large change in technology that is expected to reduce energy consumption by around 99.95 percent. How did investors react to this?
The official Ethereum.org website announced that the merger process was completed on September 15, 2022. This is a big change in the technology of the second largest cryptocurrency. Why is this such a big event, what is it about and what is changing?
Etherum Merger Completed - What Does It Mean?
Let’s start from the very beginning. The merger was the process of connecting the original Ethereum blockchain - the so-called Main Network, which has been operating since the system was introduced in 2015 - with a new level. This is called the Beacon Chain and represents another “consensus layer”.
Initially, the cryptocurrency system required the “digging” of new tokens so that network users could identify all the information contained in the blockchain log. Hence the name “consensus level”. The original method, called proof-of-work (PoW), requires a lot of computing power, resulting in significant power consumption.
In early December 2020, an independently operating Beacon Chain was created, a new blockchain that establishes consensus based on an energy-saving proof-of-stake (PoS) method. In this case, the user has a certain amount of ETH that acts as collateral against the collateral. It is currently 32 ETH which is around 246.7k. zloty.
The merger was to combine the original main network, where all accounts, balances, transactions, applications, contracts and other key elements are located, with the new method of operation offered by Beacon Chain. As the official website of the cryptocurrency boasts, after The Merge, the electricity consumption of the entire Etherum network decreased by 99.95 percent.
Etherum The Merge - Cautious Investors
The merger did not make much of an impression on investors. After the announcement of the end of the procedure, Ethereum is a little volatile, with small highs and lows in price. However, the token did not rise or lose significantly – the maximum value on September 15 (09:45) is around $1,650, and the lowest is $1,583. This is a $67 spread.
- A short-term rally of investors is expected, and the so-called. short compression of the ether. However, cautious bears now rule the market because central banks are acting like hawks - they are raising interest rates to fight inflation, Chichi Lu, a crypto expert at Venn Link Partners Pte, told Bloomberg.
Source: Wprost
