(Kitco News) Ethereum co-founder Vitalik Buterin praised the benefits Merge brings, including significantly lower transaction fees and a number of significant upgrades.
Addressing a crowd of enthusiastic cryptocurrency investors and developers at the Blockchain Futurist Conference in Toronto this week, Buterin said, “The merge is coming. This effort.
News of an Ethereum merge, likely to take place on September 19, has boosted the cryptocurrency’s rally during the late summer period. Ether (ETH) price is up 70% over the last 30 days. And the world’s second-largest cryptocurrency traded at a two-month high on Thursday, surpassing $1,900.
With the merge, Ethereum will move from an energy-intensive Proof-of-Work model that also uses Bitcoin to a more energy-efficient Proof-of-Stake consensus mechanism. Click here for more information on merging.
According to Buterin, the first thing Ethereum users will feel is a more than 99.9% reduction in the cryptocurrency’s energy consumption. The second thing is that the transaction fees are much lower.?
“We know inflation is 8.5% and gas prices are going up. But here gas prices are going down,” he said Wednesday. “Only low transaction fees can make blockchain affordable for everyone.”
Buterin said Wednesday that post-merger Ethereum transaction fees could drop as low as $0.002. This is important when looking at his median daily earnings worldwide.
“The median daily income in Canada is about US$113. In Poland, the median daily income is US$42. In Mongolia it drops to US$16 and in Zambia to US$16. [it is] 4 USD. There is a very big difference,” Buterin said.
Buterin also warned that trading costs would rise significantly once a new bull market begins. “If we see any of these bullish cycles reappearing any time soon, prices will go crazy again,” he said.
But even Ethereum’s $5 gas price is too high in some countries. “And if we’re talking about blockchain being this global thing that’s supposed to empower the unempowered today in underprivileged countries, how improbable it starts to look. You can see.
This is one of the major problems that Merge can fix. “Today, on the rollup, we’re already at 25 cents, and at other times less than 25 cents. When we analyze what happens as a result of the improvements, we’re probably talking about a potential charge of 0.05 cents. 0.002 It’s as low as a dollar,” Buterin said. “Significantly cheaper transactions until on-chain transactions become affordable for many people who are out of reach today”?
.@Vitalik Buterin Discuss Upcoming Merges: While Gas Prices Rise in the US, #inflation at 8.5% #Ethereumof gas prices are falling #Futurist 22 @Futurist_conf #Crypt pic.twitter.com/XBCqliH70h
— KitcoCrypto (@KitcoCrypto) August 10, 2022
Possibilities after merger
Buterin’s keynote focused on the many opportunities Merge opens up to Ethereum, including a series of new upgrades and projects.
“At the same time as the switch from Proof of Work to Proof of Stake, it is also an opportunity to take some of the ideas we have learned over the past eight years and use them to redesign different parts of the Ether. Liam Chain,” he said.
One of the ideas Buterin emphasized is to revive cryptocurrency payments as a trend through low energy and low transaction fees. “In 2013, there was a big social movement where people raved about trying to bring the Bitcoin economy to life face-to-face. But after a few years, people pretty much stopped talking about these things.” ?
The problem is the high fees. Back in 2013, there were claims that Bitcoin had lower fees than PayPal and Visa. “Since then, that argument has been completely false. [But] Now, if blockchain can scale, guess what? The argument is true again,” he said. Something worth trying. ”
Another future development Buterin is excited about is a project called Sign in with Ethereum. This project allows you to sign in to web services using your Ethereum wallet. “Basically he’s like a Telegram clone, but you don’t have to enter a phone number to use it,” he said.
Social recovery is another Web3 concept that Buterin is excited about. “I would say I have five recovery contacts. Two of them are going to be institutions. One of them can be my employer. One of them is my father. 1 of them can be your friend, and 3 of those 5 together can recover your account and reset your key to something else. , can be embedded in the rules of smart contracts and put on the chain,” he explained.
NFT hype
The Ethereum co-founder also criticized some of the hype surrounding NFTs, and in the 1990s there was a big idealistic effort to create an ecosystem where everyone had their own cryptographic keys. I pointed out that
“In the 1990s, there were these deeply philosophical debates about this fundamental and large-scale battle between the authority of the nation-state and the desire for individual liberty.”
According to Buterin, this is a double-edged sword in cryptocurrencies. The pre-cryptocurrency space was an idealistic decentralized technology movement with insufficient incentives. And while today’s crypto space is filled with great incentives, “sometimes there are incentives that go in very strange directions,” he noted.
the crowd is here @Vitalik Buterin and he is talking #Ethereum merge, undo #Crypt payment and more! @Futurist_conf #Futurist 22 pic.twitter.com/1pb0Art3Vd
— KitcoCrypto (@KitcoCrypto) August 10, 2022
Buterin also elaborated on scalability and more complex concepts such as proto-danksharding and danksharding that can increase the amount of data the Ethereum chain can hold. Buterin believes that number will be around 16 megabytes, compared to an average data block holding of around 80 kilobytes.
“Ethereum will be able to process a lot more transactions in the next few years than before,” said Buterin.
After the merger, Buterin envisions Ethereum’s identity ecosystem really growing. “To me, this probably seems like the best candidate for some sort of Ethereum second major app, aside from the DeFi ecosystem,” Buterin stressed.
Disclaimer: The views expressed in this article are those of the author and may not reflect the views of the author Kikko Metals Co., Ltd. The author has made every effort to ensure the accuracy of the information provided. However, neither Kitco Metals Inc. nor the authors can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation of an exchange of commodities, securities or other financial instruments. Kitco Metals Inc. and the authors of this article accept no liability for loss and/or damage resulting from the use of this publication.
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