Ethereum merge is coming- what does it mean?

From the last few weeks of May 2022 crypto holders have seen only losses due to high changes. Ethereum is one of the major cryptocurrencies of the world with some of the largest market capitalization, Ethereum is soon going to witness an upgrade.

For those who explore the crypto world every day, the Ethereum upgrade is not new information, but for those living under crypto rocks, the Ethereum upgrade is important.

Merge or Ethereum merge is an internet phrase that has seen significant searches on the web searches. The merge is an upgrade the Ethereum is going to take, the Ethereum blockchain is going to shift from a proof-of-work to a proof-of-stake(POS) model that is expected to be more energy-efficient and fast.

Who do you mean by POS- proof-of-stake and why it’s needed?

Proof-of-stake is a mechanism that randomly selects the validators relative to the total time and amount of their Ethereum(ETH) currency staked, unlike proof-of-work models that need miners to reward according to the computational power they will have. The POS model is more reliable and doesn’t require mining blocks to manage and maintain the network. The potential benefits that proof-of-stake – POS might bring are efficient energy use, as per the Ethereum foundation, reduced risk of the centralized network which can harm network security, and elimination of expensive and advanced hardware such as mining rigs.

What exactly is Ethereum merge?

Ethereum is one of the most popular and largest cryptocurrencies in the world used for many purposes, and the first one to start the smart contracts. Ethereum hosts many projects and applications, but the Ethereum network struggles to offer more efficient and environment-friendly methods. Ethereum uses high-gas fees, heavy congestion, and energy to run projects and applications. However, this needs to change, Ethereum currently works on POW- Proof-Of-Work like Bitcoin (BTC) and needs to switch to a more scalable, environment-friendly model POS. The Ethereum team has recently finished its last test run or the final stage to switch from the old model to the new. Ethereum will soon move from POW to POS. Although the Ethereum merge will not resolve all the problems of Ethereum, it can reduce issues to a great extent.

The effect of Ethereum merge on your crypto investments

Ethereum has already upgraded a large part of its model from POW to POS, soon it will be over. According to many crypto experts, this switch between models will lead to new high prices in Ethereum. Ethereum is already a part of investors’ investing strategy due to its second-largest market capitalization, this switch will make Ethereum stronger and you might see a rise in prices. However, the crypto market will always be risky and based on how you invest and manage your investments, so only based on the judgment of switching networks, you cannot invest in Ethereum without your research.

What will happen after the Ethereum merge?

Ethereum merge is already in its last stage, from POW to POS, the developers have worked endlessly to convert and reduce features which might have slowed down the process of merge and upgrade. However, these features will be rechecked or worked on later after post-merge. The Ethereum will not change or resolve every problem of Ethereum cryptocurrencies such as high energy efficiency, high gas fee, and more, but it can reduce many issues and give the feature of scalability to the Ethereum network which can help in a better host of applications, projects, smart contracts, and more in the long run. The stakes for Ethereum after the merge are higher not only for Ethereum but for cryptocurrency as a whole, the success of Ethereum’s upgrade to POS will bring more strength to the network and reduce the risk of network security.

Final Thoughts: POW- Proof-of-work model by BTC for BTC and other older currencies have been working successfully over the year, but in the long run, the model will only cause more problems in terms of gas, fee, energy consumption, and scalability. Ethereum network is not only a coin, but has the ability to host applications, projects, and smart contracts, that’s why this upgrade of Ethereum from POW to POS is useful. As per the experts, it will bring more security, scalability, and strength to the network and raise the market price of Ethereum. However, the investors planning to invest major stakes in Ethereum, should conduct proper research and understand all the aspects of the upgrade.


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