Ethereum is the second largest blockchain in terms of market capitalization is set to undergo a huge change that is widely known by members of the cryptocurrency community under “the Merge.”
It’s a long-awaited update to the entire system that , according to experts, will cut the energy usage of the blockchain by 99%, by shifting its verification method to “proof-of-work,” which relies on cryptocurrency “miners” using massive amounts of computing power in order to verify transactions.
Following Merge, Merge, Ethereum will use an “proof-of-stake” system that instead employs an algorithmic lottery to decide who can verify transactions (and get tokens to do so) from an array made up of “stakers” who temporarily deposit their money to ensure the security of the network.
The impact of crypto on the environment has been an issue for a long time. regulators and public opinion against it. A one Ethereum transactions, as an instance uses about the same amount of energy as the typical U.S. household does during an entire workweek, Fortune reported last year. This is one reason Vitalik Buterin, Ethereum’s most well-known chief executive, has been setting the foundation for the Merge from the beginning of 2014.
The upgrade was planned to be completed in 2016, but it was repeatedly delayed due to the Ethereum Foundation, the nonprofit that is responsible for maintaining the Ethereum blockchain. It was rumored that it would eventually happen earlier in the summer but was then pushed back a second time.