Honoreum Merge- What Happens to the Second Largest Crypto Network?

Ethereum Merge is just around the corner. For years, “Ethereum 2.0” has been delayed until development has progressed far enough. After several successful tests, Ethereum will no longer use the proof-of-work mechanism in the future, but rather the proof-of-stake mechanism. To bring about this change, Ethereum must now fundamentally change the blockchain. You can find out everything behind it and how Ethereum 2.0 will proceed here.

Why is Ethereum changing the blockchain?

Ethereum, like most of the early cryptocurrencies, was programmed to be Proof-of-Work (PoW). Proof of work is a concept of how the transactions are validated. Besides Ethereum, Bitcoin also uses PoW. Due to the mass of new applications like NFT, Smart Contracts, etc., PoW is no longer up to date for processing transactions. So you may have noticed in the past that Ethereum transactions have become expensive and slow. In order to process the large number of transactions, Ethereum must become scalable. This is done by changing the blockchain from PoW to PoS.

What does the merger mean for Ethereum?

For Ethereum, the merger is crucial. Without blockchain modernization, Ethereum would gradually be overtaken by new blockchains. Due to the low scalability, Solana and Cardano in particular were able to gain ground on Ethereum in NFT and smart contracts. But new providers were also created in the DeFi space that were able to meet user demands faster than Ethereum. If Ethereum wants to remain one of the major players in the crypto market, the merger must succeed.

Ethereum Merge: Will the second largest cryptocurrency switch from Proof of Work to Proof of Stake?

When will the merger take place?

The merger takes place in several steps. Ethereum wants to complete the main one on September 6th after several postponements. The merger was actually supposed to take place in 2019. After several changes, September 16 was set, now the date has been moved forward. However, it must not be expected that the merger will then be carried out. The merger should not be completed until the middle of the month. The sharp price drop of the last few days is therefore at the wrong time for Ethereum.

Will Ethereum Soar After the Merger?

In principle, a successful merger will be a positive signal for the entire crypto industry. A positive merger may even trigger a short rally. Experts suspect that the Ethereum price could rise to as much as $5,000 as part of the merger. Conversely, a false start after the merger can throw the entire industry into a bear market. Additionally, Ethereum would likely lose its pioneering role in NFT, Smart Contracts and DeFi to other cryptocurrencies in the long term.

Will the merger work?

Ethereum is poised for arguably the biggest change in its history. Otherwise, the developers probably would have moved the merge further back. In addition, some tests were carried out to ensure the functionality of Ethereum 2.0. For example, a large fusion test called “Görli” was recently completed. In this test, an Ethereum network was switched from PoW to PoS. After this test went without a hitch, the merger date was set for September.

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