The main upcoming story in the crypto world is the Ethereum Merger, which is scheduled to happen very soon, with a target date of September 19. Before that, there will be further tests to make sure everything works, and all things considered, the changes will come this year.
A caveat should be added though, that Join has been in the pipeline for a long time now, and repeatedly shunted back. Tellingly, that delay (the last one occurred earlier in the year) was not greeted in the crypto community with disappointment, but rather, with expectations of a setback.
However, while it will not be a surprise if the Join again fails to go ahead, one imagines that every time it is delayed, it becomes more likely to function properly the next time, and so we can actually get the transition this September.
What is Combined?
As a brief summary, Merge is the next stage in the development of Ethereum, when it will switch from proof-of-work blockade, to proof-of-stake. blocking. The purpose of changing to proof-of-stake is to allow Ethereum to start the scaling process, so that it can deliver faster speeds, higher volumes and lower costs.
You will also notice that proof-of-stake is more energy efficient than proof-of-work. While it is true that less energy is used through proof-of-stake, it is debatable how important this is beyond the level of public relations. It is certainly, at least, allowed Ethereum advocate for moving the correct bureaucratic box within the political-cultural environment use energy shown as destructive.
What will the Combined do?
If you are hoping that after Joining, you will save your eccentric Ethereum transaction fees, then think again, because it will not reduce your gas fees. In fact, from the perspective of the average Ethereum user (there are no true Ethereum users averageof course) that, for example, collecting and trading NFTs or using DeFi, the user experience will, for the moment, continue as before.
However, Merge sets the route for critical goals (reduced costs, scalability, better user experience) that will be achieved in the future. In fact, Join is one step ahead of several changes that the Chief Padre Ethereum himself, Vitalik Buterin, called Surge, Verge, Purge and Splurge.
This all sounds noisy and exciting (which can sum up Ethereum and the entire ecosystem, full of outside artists, tech-obsessives, and cold-blooded scammers), and which should ultimately be the same as the implementation of the blockchain technique called sharding. This (along with layer 2 solutions) will increase efficiency and lower costs before, in the end, we witness the emergence of unlimited practical and experimental activities from developers and users.
The merger is part of a long-term plan that will be positive not only for Ethereum itself, but for the wider adoption of crypto, as it was when it was mainstream. crypto players make their moves, the whole ecosystem gets a leg-up.
In the nearer term, and from an investor’s point of view, it is likely that the Ethereum Merge will play out as a sell-the-news type of event, although that remains to be seen and depends on how the overall crypto market is doing. they endured at that time.
Why Mergers Are Good for Bitcoin?
There is a recurring discussion in crypto about the concept of bitcoin maximalism, and whether it is positive or not. This conversation broke down because in a bear market some crypto holders tend to go for the maximum ethos. This may be due to the severe crash that left the project fragile, while the power of bitcoin and its advantages were emphasized.
The main principle of bitcoin maximalism is that other cryptocurrencies are not needed and cannot compete effectively with bitcoin as a decentralized, limitless, peer-to-peer digital money that can replace fiat currency.
However, if we distinguish between bitcoin, a decentralized digital money and Ethereum, a smart contract platform to run decentralized applications or web3, then there is no need for conflict, and each can develop on its own terms.
As for the other block 1 layers that are now well-known, Solana, Cosmos, Cardano et al, this would belong to the latter category (smart contracts and web3 platforms, rather than digital money), and would clearly compete with Ethereum, but it is not. Bitcoin.
The combination emphasizes this categorical difference because Ethereum and other smart contract networks will all be proof-of-stake (with the partial exception of Solana which uses a hybrid system that combines proof-of-stake and proof-of-history), while Bitcoin remains, as it should, is a proof-of-work blockchain.
Bitcoin is not the only proof-of-work network, but others that fall into that category, Litecoin and Monero, in particular, would fit into the category intended as a medium of exchange.
It is possible that the next few years will see crypto more clearly break up into separate and unique sectors, related to the foundation of blockchain, but different and moving in different directions. Ethereum’s transition to proof-of-stake is perhaps the change that emphasizes the most obvious difference: that between Bitcoin and the rest.
The main upcoming story in the crypto world is the Ethereum Merger, which is scheduled to happen very soon, with a target date of September 19. Before that, there will be further tests to make sure everything works, and all things considered, the changes will come this year.
A caveat should be added though, that Join has been in the pipeline for a long time now, and repeatedly shunted back. Tellingly, that delay (the last one occurred earlier in the year) was not greeted in the crypto community with disappointment, but rather, with expectations of a setback.
However, while it will not be a surprise if the Join again fails to go ahead, one imagines that every time it is delayed, it becomes more likely to function properly the next time, and so we can actually get the transition this September.
What is Combined?
As a brief summary, Merge is the next stage in the development of Ethereum, when it will switch from proof-of-work blockade, to proof-of-stake. blocking. The purpose of changing to proof-of-stake is to allow Ethereum to start the scaling process, so that it can deliver faster speeds, higher volumes and lower costs.
You will also notice that proof-of-stake is more energy efficient than proof-of-work. While it is true that less energy is used through proof-of-stake, it is debatable how important this is beyond the level of public relations. It is certainly, at least, allowed Ethereum advocate for moving the correct bureaucratic box within the political-cultural environment use energy shown as destructive.
What will the Combined do?
If you are hoping that after Joining, you will save your eccentric Ethereum transaction fees, then think again, because it will not reduce your gas fees. In fact, from the perspective of the average Ethereum user (there are no true Ethereum users averageof course) that, for example, collecting and trading NFTs or using DeFi, the user experience will, for the moment, continue as before.
However, Merge sets the route for critical goals (reduced costs, scalability, better user experience) that will be achieved in the future. In fact, Join is one step ahead of several changes that the Chief Padre Ethereum himself, Vitalik Buterin, called Surge, Verge, Purge and Splurge.
This all sounds noisy and exciting (which can sum up Ethereum and the entire ecosystem, full of outside artists, tech-obsessives, and cold-blooded scammers), and which should ultimately be the same as the implementation of the blockchain technique called sharding. This (along with layer 2 solutions) will increase efficiency and lower costs before, in the end, we witness the emergence of unlimited practical and experimental activities from developers and users.
The merger is part of a long-term plan that will be positive not only for Ethereum itself, but for the wider adoption of crypto, as it was when it was mainstream. crypto players make their moves, the whole ecosystem gets a leg-up.
In the nearer term, and from an investor’s point of view, it is likely that the Ethereum Merge will play out as a sell-the-news type of event, although that remains to be seen and depends on how the overall crypto market is doing. they endured at that time.
Why Mergers Are Good for Bitcoin?
There is a recurring discussion in crypto about the concept of bitcoin maximalism, and whether it is positive or not. This conversation broke down because in a bear market some crypto holders tend to go for the maximum ethos. This may be due to the severe crash that left the project fragile, while the power of bitcoin and its advantages were emphasized.
The main principle of bitcoin maximalism is that other cryptocurrencies are not needed and cannot compete effectively with bitcoin as a decentralized, limitless, peer-to-peer digital money that can replace fiat currency.
However, if we distinguish between bitcoin, a decentralized digital money and Ethereum, a smart contract platform to run decentralized applications or web3, then there is no need for conflict, and each can develop on its own terms.
As for the other block 1 layers that are now well-known, Solana, Cosmos, Cardano et al, this would belong to the latter category (smart contracts and web3 platforms, rather than digital money), and would clearly compete with Ethereum, but it is not. Bitcoin.
The combination emphasizes this categorical difference because Ethereum and other smart contract networks will all be proof-of-stake (with the partial exception of Solana which uses a hybrid system that combines proof-of-stake and proof-of-history), while Bitcoin remains, as it should, is a proof-of-work blockchain.
Bitcoin is not the only proof-of-work network, but others that fall into that category, Litecoin and Monero, in particular, would fit into the category intended as a medium of exchange.
It is possible that the next few years will see crypto more clearly break up into separate and unique sectors, related to the foundation of blockchain, but different and moving in different directions. Ethereum’s transition to proof-of-stake is perhaps the change that emphasizes the most obvious difference: that between Bitcoin and the rest.
