What is the Ethereum merge and how could it make crypto greener?
The project has been hit by delays
What is the Ethereum merge?
The merge aims to make the Ethereum blockchain more efficient by switching from a proof-of-work (PoW) mechanism to a proof-of-stake (PoS) system.
PoW, which was pioneered by Bitcoin, is secured by crypto miners solving complex but pointless mathematical puzzles — a process that consumes vast amounts of energy.
A PoS system, meanwhile, is maintained by users staking crypto to process transactions.
Ethereum currently runs both mechanisms. The merge will combine the two layersin a single proof-of-stake-based chain. All the Ethercryptocurrencyon the network will be unaffected by the switch.
What are the pros and cons of the merge?
PoS proponents expect the merge to make Ethereum more scalable, secure, and sustainable.
The switch would make the blockchain’s miners obsolete and slash the emissions of the numerous projects — including many NFT platforms — that run on the Ethereum infrastructure.
Carl Beekhuizen, a researcher at the Ethereum Foundation, estimates that the transition willreduce the network’s energy consumption by 99.95%. That could also convince more people to invest in Ethereum.
However, not everyone is convinced of the benefits. Critics have raised concerns aboutthe security risksand doubts aboutthe impact on Ethereum’s scalability.
Yet perhaps the biggest issue is the merge’s endless postponements.
When is the merge happening?
The merge was first proposed in 2016, but the transition has proven more complex than expected.
In March, Ethereum founder Vitalik Buterindefended the delays:
He added that the switch would finally happen “very soon.”
Researchers expected this to happen in June, but insiders this month warned of further delays.
Ethereum Foundation developer Tim Beiko tweeted on April 12 that the merge “won’t be in June, but likely in the few months after.”
“There’s a lot of skepticism because Ethereum has promised proof of stake for five years,” Beiko said. “It’s hard to convince people that this time it’s for real.”
Beiko nonetheless promised that the merge was nearing the end of its “final chapter.” Supporters of Ethereum will hope that he’s correct, because the network’scompetition is heating up.
Story byThomas Macaulay
Thomas is a senior reporter at TNW. He covers European tech, with a focus on AI, cybersecurity, and government policy.Thomas is a senior reporter at TNW. He covers European tech, with a focus on AI, cybersecurity, and government policy.
Get the TNW newsletter
Get the most important tech news in your inbox each week.
