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A country without a dear bank,
Marge is approaching and will be the biggest level up of Ethereum ever.
But how will this major technology shift affect Ethereum’s flooded NFT ecosystem?
It’s hard to say this early on, but there are certainly some big ideas to note.Let’s take a look at some of them today Metaversal..
-WMP
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First of all, what is a merge?
Until this year, Ethereum has relied on the Proof of Work (PoW) consensus mechanism. It was first pioneered by Bitcoin Satoshi in the context of blockchain.
PoW includes “mining”. This is the process by which miners compete to solve math puzzles using special hardware. The winner gets the right to order the transaction from the block and this process maintains the current state of the blockchain.
However, especially because PoW consumes a lot of energy and is inefficient, Ethereum’s core developers plan to move Ethereum to the Proof of Stake (PoS) consensus mechanism from 2016. A special ETH deposit to participate in and earn from the block making process.
Ethereum made a big leap towards this transition in December 2020, when the PoS “Beacon Chain” was launched. Since then, Beacon chain deposit contract Obtained almost 13 METH, mergeThe current Ethereum PoW “Execution Layer” will be integrated into the PoS Beacon Chain “Consensus Layer” later this year.
This decisive pivot to PoS makes Ethereum more energy efficient, more decentralized and crypto-economically secure. On June 8, 2022, when Ethereum’s Ropsten testnet held a trial merge event, we first got a glimpse of what this transition would look like. Therefore, Ethereum on the mainnet is currently scheduled to undergo an official merge at the end of this summer or early fall.
Greening effect
ASIC and GPU devices are used in PoW mining operations, many of which are very large and use large amounts of energy.
As a result, the move to PoS can significantly “dephysicalize” the consensus process, reducing Ethereum’s energy consumption by more than 99%.Instead of relying on huge ASIC and GPU farms that utilize a lot of fossil fuel energy and are routinely physically criticized, PoS virtual A mechanism based on stakeout deposits within the Ethereum virtual machine (EVM).
In the future, this Ethereum greening will bring wonders to the public’s perception of the network.For example, Ethereum has dominated the NFT ecosystem so far, but which markets share the smart contract platform? lost Over the last two years, there have been considerable environmental concerns such as Polygon and Tezos NFT surges. Migrating from PoW completely solves this problem. This will allow Ethereum and its L2 to adopt deeper mainstream NFTs and promote more NFT activities than ever before.
From one era to the next
For Ethereum end users, such as NFT traders, The Merge should prove to be a fairly imperceptible experience, in addition to the celebration of all the pop-off communities. That is, the dapp will continue to work and no chain breaks are expected.
what Will However, the difference is that a considerable historical distinction has been introduced. There are PoW-era NFTs and PoS-era NFTs, and Merge is the boundary event that separates these two periods.
Of course, it is premature to know how this perception of historical distinction is demonstrated.In the above Twitter poll Noun DAO Co-founder 4156 voted “no” for 60% of respondents when estimating whether a noun auction in the last PoW era or the first PoS era would eventually win a premium. Therefore, this distinction may not be very relevant. Or it could be a major milestone for future archaeologists. For now I only know the time.
Deflationary Veblen Money-Is it okay?
In particular, Marge is expected to reduce Ethereum’s ETH issuance rate by about 90%. Next, taking into account the burning of Ethereum fees, The Merge is now ready to remove millions of dollars worth of ETH selling pressure and replace it with millions of dollars worth of ETH buying pressure every day.
Let’s say that this big change in demand actually supports the remarkable upward trend in ETH prices.As you can see, the rise in ETH prices in the context of NFTs can Catalyzes major new waves of ecosystem activity.
For example, Framework Ventures’ Vance Spencer appeared on the Bankless podcast this week. At one point he made a very interesting comment, observing that ETH is a “Veblen good” and people tend to use more ETH as prices go up.
So I know where I’m going with this … ETH rally after merging May It will lead to the next big rally in the NFT ecosystem. I’m still not sure if that will work so well, but it seems that the focus is on the possibilities.
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Biography of the author
William M. Peaster is a professional writer and creator. Metaversal— A bankless newsletter focusing on the emergence of NFTs in the crypto economy. He has recently contributed content to Bankless, JPG and more.
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