Cryptocurrency just had one of its most important events in history, specifically Ethereum. The technological update dubbed the “Merge” just went underway, and if you are unfamiliar with what happened, here it is:
Ethereum ran under a proof-of-work blockchain, which most cryptocurrencies use. They found this to be inefficient and there was a lot to be improved, so they have been preparing for a blockchain update in the past few years. This update would change the blockchain into proof-of-stake, which requires validators instead of miners, and the benefits are endless. It’s estimated that the amount of electricity needed will decrease by 99 percent, which will do wonders for the environment, and it comes with increased speed and security.
Many were worried as to how this would be executed in a moving Ethereum market, but it wasn’t as bad as expected. Ethereum is currently down about 15 percent in the past week, but crypto enthusiasts are happy with the results as the system is now where they want it. Ethereum has now provided a blueprint for the rest of the crypto world as it now proved that you can successfully merge to a much cleaner, efficient blockchain. Large cryptos like Bitcoin are essentially forced to consider making the switch now, and it’ll help reduce the carbon footprint of cryptocurrencies as a whole.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.