Cryptocurrency

September 14 may be the biggest day in the history of the internet

Merging has been a hot topic within the Ethereum ecosystem for years.of 3rd revision The original Ethereum whitepaper included references to Proof of Stake in 2014. Vitalik Buterin added a reference to PoS, stating that both PoW and PoS can “serve as the backbone of cryptocurrencies.”

“The mechanism behind Proof of Work was a breakthrough in the field…Another approach, called Proof of Stake, has been proposed that calculates node weights proportionally to currency holdings rather than computational resources. … we should be careful with both approaches, they can be used to act as the backbone of any cryptocurrency.”

Furthermore, later in the paper, Vitalik added that “in the future, Ethereum will likely switch to a proof-of-stake model for security.” Almost nine years after the whitepaper was published, the move to PoS has yet to materialize.

September 14, 2022

However, as many have already recognized, it is officially scheduled for September 2022. More precisely, one Ethereum developer calculated that the block height of the project he will reach on September 14th at 10:57 pm (CEST+2). This date may fall. It has been recorded as the most important day in the history of the Internet.

The merge is important not only because it is the culmination of years of work by the Ethereum developer community, but because it cements Ethereum as one of the most important building blocks of the future internet. It is a viable mechanism for enterprises to upgrade security while reducing energy output. ESG requirements.

PoS Ethereum silences the misguided narrative that PoW is bad for the environment while reducing Ethereum’s emissions by 90%. Ethereum inflation is currently at 4.3%. It will drop to about 0.4% after the merger, but major fiat currencies are now at their highest level in 40 years.

Less than a month after The Merge was published, it has become a major topic of discussion by many of the key players in the space. Ethereum also outperformed Bitcoin, up 62% from its July local low.

Oil change at 30,000 feet

Merge has to be one of the most technologically advanced coding upgrades in the history of the Internet. Ethereum hosts over 500,000 of his ERC20 tokens. on-chain That means half a million projects rely on Ethereum to settle transactions within the ecosystem.There is also a rough 4,000 dApps Ethereum and over 500,000 active addresses.

The entire network will be integrated into the beacon chain and the consensus mechanism will change, but the network will continue to generate blocks.there will be no downtimeand all applications will continue to run during the upgrade.

Many Web 2.0 applications require the server to be restarted or put into “maintenance mode” when critical updates are made. Ethereum has no such luxury. Merging occurs while the network continues to grow.

triple half

Once the integration is successful, the new PoS version of Ethereum is commonly known as the “triple halving”. Bitcoin halves roughly every four years, and the amount of Bitcoin issued halves. This effect is often thought to be the beginning of the next cryptocurrency bull market.

When Ethereum transitions to PoS, 90% less ETH will be issued, equivalent to 3 halves in 1 block. In PoW, Ethereum will issue 13,000 ETH per day. Only 1.6k is printed per day under the PoS consensus mechanism.

Unlike Bitcoin, which is often considered “digital gold” or a “store of value,” Ethereum is a decentralized virtual computer known as the Ethereum Virtual Machine. This allows automated, incentivized and programmable smart contracts to interact and open doors to applications not possible with Web 2.0.

VC perspective

Fred Wilson, a prominent VC at Union Square Ventures, said: Published a blog post Focus on the merge on Monday and what it means for crypto. Wilson emphasized her three main points for Marge. Reducing our carbon footprint, changing the supply and demand ratio of Ethereum, and increasing security.

Wilson also highlighted the possibility of a PoW fork surfacing after The Merge. But he makes no predictions about the likely impact this will have on the ecosystem.

“ETH POW has the potential to develop a community around it, keep it alive, and provide value to developers. ETH POW tokens can either become worthless or become very valuable over time. There is really no way of knowing how ETH POW will develop.”

Regardless of the potential post-launch fallout of the ETH PoW token, Wilson believes it is “probably the most significant change any large-scale blockchain has ever undergone.”

future of internet

Web3 is now a popular term for technology, but has yet to gain mainstream adoption. Ethereum may be behind in adoption due to major upgrades in its development. Once the beacon chain is implemented on mainnet, the roadmap for the future will be much simpler, allowing projects to launch on Ethereum without worrying about The Merge potentially failing.

As web3 gains mainstream adoption and becomes part of our daily lives, it is clear that Ethereum will be a major component. Layer 2 solutions will likely facilitate most transactions, but Ethereum will continue to serve as the payment layer for the majority of web3. September 14, 2022 could go down in history as the true birth of web3, or its downfall if The Merge fails.Here at CryptoSlate, you’ll be glued to your monitor to see this historic moment unfold

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button