According to Coinmarketcap data, the price of Ethereum (ETH) at 11:30 am on June 6, 2022 was $ 1,079.95. Today, on July 22, 2022, Ethereum was trading at $ 1,568.09 as of 11:00 am. That’s about 46% of your revenue in a month and a half.
Anyone interested in Ethereum knew that Ethereum and its new version of “Merge” would take place in mid-2022, but Ethereum consultant “superphiz.eth” announced on September 19, 2022. I didn’t know the exact date until I suggested the possibility. The date of the final merge between the two.
But he just suggested this date. This does not specify that the merge will take place on September 19th.
The timeline for this merge isn’t final, but it’s very exciting to see them together. Think of this as a planning timeline and watch out for official announcements! https: //t.co/ttutBceZ21 pic.twitter.com/MY8VFOv0SI
—Superphiz.eth 🦇🔊🐼 (@superphiz) July 14, 2022
What is Ethereum Marge?
Simply put, this “merge” event is where Ethereum’s consensus mechanism in the “proof of work” stage moves to the “proof of stake” stage. A consensus mechanism is the process used by crypto blockchains to maintain the integrity of their respective blockchains by obtaining votes (consensus) from members for decision making. Simply put, it means that the game needs skins to make changes to a particular blockchain.
Punit Agarwal, founder and CEO of KoinX, a cryptocurrency tax reporting platform, said the proof of stake consensus mechanism will soon be implemented in the Ethereum blockchain network.
Also, unlike previous proof-of-work mechanisms, the proof-of-stake mechanism states that “verifiers actually need to put collateral in the form of Ethereum (ETH) into smart contracts. This collateral validates transactions. If the validator does not perform, or if it is performed improperly by adding malicious transactions to the network, their interests can be banished. “
Regarding exactly what the various Ethereum validators are responsible for, Agarwal said, “We are responsible for ensuring that new blocks added over the network are valid, creating and propagating new blocks. Sometimes we do. “
Why did you need such a change?
There were several situations in which the Ethereum Foundation realized that it could damage its reputation and slow future growth. With this new update, “Merge,” Ethereum will make fundamental changes to society, people, and the entire ecosystem as there are many other blockchain applications (NFTs, games, etc.) that rely on Ethereum to provide services. I hope to bring it.
society: Global warming is a real problem, and a recent report by the Guardian reported that the temperature recorded at Heathrow (40.2 C) had “completely disappeared.” Kiran Tota-Maharaj, a leader in civil engineering at Aston University in London, said the 40 ° C temperature could fail if this heat wave continues, as most UK infrastructure is not built. Said.
Ethereum is switching from proof of work to proof of stake because it wants to contribute to its efforts to stop global warming.
Tapan SangalFounder and Chief Evangelist of P2EProPvt Ltd, a Delhi-based Metaverse company, said demonstrating work mechanisms requires expensive mining and enormous computing power, all of which requires power. rice field.Elsewhere, the Proof of Stake Network “requires consensus validators to bet on their cryptocurrencies as collateral. Proof of stake adoption is relatively reduced. energy Consumption (because no mining or computing work is required), this is suitable for the environment. “
People: Agam ChaudharySerial entrepreneur and investor Web3, e-commerce space, known as “Merge” Ethereum update aims to make blockchain “efficient, fast, affordable” for people He said it would increase the value. It will also increase the chances for investors, in particular, to bet on ETH and earn rewards. “
ecosystem: Vitalik Buterin, co-founder of Ethereum (ETH), said it aims to make the blockchain more scalable and to reduce block times. Sangal added in this new update that Ethereum aims to “reduce time and reduce the gas charges required for each transaction on the Ethereum blockchain.”
Buterin says he aims to reduce the block time from the current 13 seconds to 12 seconds, which will improve the scaling of Transactions per Second (TPS).
According to Coinmarketcap data, Ethereum’s gas charges were 10 Gwei at 11am standard 195 seconds. To increase the transaction speed of 45 seconds, the fee was 12 Gwei.
What exactly means TPS is faster for Ethereum users, Agarwal said: “By reducing the time it takes to execute transactions on this blockchain, we enhance the scalability and capabilities of Ethereum applications, and more scalable applications and solutions for different users to meet the demands of their business. You will be able to build. “
Was this the reason for such a sudden price increase?
Not all of these changes were made overnight.
The Ethereum developer community has been working for seven years to bring about this change without stopping the core blockchain. But the price surge happened during the last week. So what is the reason?
Sangal said the Ethereum developers “created a testnet for the merge a few days ago, which indicates that the mainnet migration is coming soon. Market participants picked up the news and the merger We have come to the conclusion that it can happen really quickly. This news (test-net) is one of the biggest reasons for the price surge.
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