The Merge is here: Ethereum has switched to proof of stake

We won’t know right away if the merger – the moment the Ethereum mainnet joins the layer using the new consensus mechanism – delivers on its transformative promise. Some of the expansion efficiencies that proponents feel will not emerge until then Impulsivity, intensity, purification and boasting—Other promotions Ethereum CEO Vitalik Buterin promised, which May continue until 2023. In July, Buterin said he would only consider Ethereum 55% “done” after merging.

In the meantime, a lot can happen. The Ether priceEthereum, the cryptocurrency, can move up or down after initial speculative instability, and other proof-of-stake coins such as Solana and Polkadot can be affected like that. The change could also put Ethereum in a regulatory gray area. Some legal scholars have I suggested that using Proof of Stake exposes the cryptocurrency to greater risk of being classified as an unregistered security because the fact that auditors work in tandem to approve transactions with the expectation of reward can be considered a “common enterprise”; Other experts Doubt the argument is strong Enough for the Securities and Exchange Commission to follow. Buterin claims that the merger makes the Ethereum network saferbut some experts have suggested that Reverse Do you issueto warn users to beware ofReplay attacks“Scammers can log a transaction on the old Ethereum chain and repeat it without permission on the new chain.

Since the transactions on the network after merging should look more like other financial transactions, Traditional companies that may have moved away from unique and energy-consuming cryptocurrencies Operations may take a second look at Ethereum — and Proof of Stake cryptocurrency in general. If they do, the cryptocurrency industry could see a shift in its reputation and user base.

On the other side of the coin, startups built around miners who have been left out of the Ethereum process will likely need to focus on or refocus on Bitcoin and other Proof of Work networks. Some die-hard Ethereum 1 supporters plan to stick with Ethereum Proof of Work. A famous miner said that he would “fork hard“Network, code separation to maintain a file separate series (as such some did in 2016 to maintain a previous incarnation of Ethereum). This move is unlikely to have a significant impact on the ecosystem unless large platforms recognize it; open seathe largest market for NFTs claimed You will only support Proof of Stake on Ethereum.

Regardless of what happens next, Ethereum’s long-awaited Proof of Stake turnaround has injected a boost of fresh enthusiasm and technical potential into an industry battered by persistent reports of fraud and Legal InvestigationsAnd the Token price dropsgeneral fatigue with Celebrity endorsements and noise cycles. The fact that one of the major players in the crypto space has invested time and money in laying the foundation for a less destructive and more efficient ecosystem is a massive achievement. This signal alone may be a shift in the Web3 industry, which remains steadfast venture capital investment And it can find new fuel in enhanced public cognition.

Rebecca Ackerman Writer, designer, and artist based in San Francisco. I wrote about it Crypto Promises and Web3 MIT Technology Review money issue earlier this year.

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