The Ethereum Merge might just be the biggest thing that’s happening in the crypto world and many are taking to Twitter about how they feel. There’s a lot more information around it and it’ll certainly be a big change in the game of crypto because Ethereum will be moving from Proof of Work (PoW) to Proof of Stake (PoS).
What Is The Ethereum Merge?
Twitter user @twofivedev released a simple visual explanation on the Ethereum Merge that makes it a lot easier to understand what will happen. If you are interested, you can find the full thread here.
In simple terms, the current system being used by Ethereum which is Proof of Work, is a mechanism that allows the decentralised network to agree on things like account balances and the order of transactions. This causes the algorithm for mining to use a huge load of energy that led to a lot of environmental complaints.
On the flip side, the Proof of Stake system is a type of mechanism used by blockchains to achieve distributed consensus. In POS, Validators explicitly stake capital in the form of ether into a small contract on Ethereum.
Before the new mechanism goes live, it has been confirmed by Ethereum developers that there will be a test to work out any kinks before it is fully deployed. Once the testing period is over, it will be ready to launch. Watcher.guru has reported that the merge is only the beginning of their plans for the next few years that will lead to the eventual announcement of ETH 2.0.
Using The Visual Explanation
In the thread, beavers were used to illustrate the differences between POW and POS. The beavers using POW were exhausted because they were all consuming a lot of energy into finding out how to get across a river with their logs but at the end it is only one that would be awarded. On the other hand, the beavers illustrated in the POS example were lying down lazing, not all of them wasting their energy and only the ones who put their log down.
How Ethereum Merge Changes The Environment
Now with Ethereum making the move to a POS system, it will be much better for the environment. Currently, the POS mechanism on Ethereum only consumes around 112 TWh per year. This number is similar to an entire country like the Netherlands that has a population of over 17 million people living in it.
What Is The Community’s Reaction?
Overall, everyone is excited by the change and also for the saving of the environment whilst saving energy amongst the benefits. Some are excited over the potential massive increase in price of Ethereum also, but these are yet to be confirmed. Lark Davis, an investor with 1 million Twitter followers said: “The Ethereum merge is a bigger and more important event than the Bitcoin halving.” To stay updated on NFT news, follow NFTeller.