Vitalik Buterin assures that the Ethereum “merger” will take place between August and October

This Friday, the co-founder of Ethereum explained that the merger of the Ethereum blockchain could take place in August, except for major issues. An event that is highly anticipated by the crypto community.

That would be a real upheaval for the ecosystem. One of the major updates to the Ethereum blockchain (which has its own cryptocurrency ether), called “The Merge” (the merger) was to take place in August. This merger consists, for Ethereum, in going from a validation and mining process called “proof of work” (Pow) to “proof of stake” (PoS). A huge step towards a completely different system.

This Friday, Vitalik Buterin, co-founder of Ethereum, gave more details about the date of the transition during the Web 3.0 ETH Developer Summit event in Shanghai.

“If all goes well, the merger is expected to take place this summer. If there is no problem, the merger will take place in August. If there are problems, September is possible and October is Ethereum finally becoming a proof-of-stake network, Said Vitalik Buterin.

The latter also confirmed the date of June 8, when the developers of the Ethereum network will perform a new test so that the update can be performed seamlessly. If Vitalik Buterin mentioned the month of August, the date of the merger seems to be postponed each time. Originally scheduled for the end of June, it was finally postponed to later in the year the developers of the Ethereum network, including Tim Beiko, who felt that other tests were still needed.

On the Ethereum page, the merger for the third / fourth quarter of the year is announced, there are no further indications.

99.95% less energy

As a reminder, PoW (“proof of work” or proof of work) is a system that aims to secure many blockchains, thanks to minors (person or group of people) who use the computing power of computers to validate transactions and generate new ones. blocks on a blockchain. This system is mainly used by the two flagship cryptocurrencies, which are ether and bitcoin. This practice was the subject of debate in March 2022 in the European Parliament, where deputies called for its ban in the debates on Mica (the “Markets in Crypto-Assets” regulation) due to the high energy consumption required by this method and thus its impact on the environment.

PoS (“proof of stake”), in turn, is a system that aims to secure many blockchains and is considered an alternative to PoW. A holder of a cryptocurrency is selected at random and, in particular, must prove that he owns a certain amount of cryptocurrency in order to obtain the right to validate blockages in the network in order to guarantee his security. This method is less energy intensive than PoW.

On the one hand, as explained above, the PoS system remains less energy intensive than the PoW. In fact, in a note published in May on the Ethereum page, the developers claim that the merged blockchain will consume 99.95% less energy after its transition.

An event that society has been waiting for with excitement

“The annual consumption of the Ethereum network is estimated at 74.6 terravand”, recalls the Association for the Development of Digital Assets (Adan). To date, and according to figures from Coinmarketcap, the ether circulating on Ethereum is the second largest cryptocurrency measured by capitalization, with a capitalization of $ 245 billion at the time of writing this paper. Furthermore, the Ethereum blockchain has risen sharply in recent years, both with the boom in NFTs, mainly acquired on the Ethereum blockchain, and the advent of decentralized financial services.

This merger will also lead to new features for blockchain miners:

“Once the merger is complete, validators will take over the validation of the Ethereum network. Mining will no longer be necessary, so miners are likely to invest their earnings in the new proof-of-stake system,” Ethereum points out on its website. .

On the other hand, this merger should reduce the emission of ethers in circulation, which would mean that the demand for ether could be higher by a limited amount. In fact, unlike bitcoin, which circulates in limited quantities (21 million bitcoins in the long run), ether currently circulates indefinitely.

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