- Ethereum has successfully switched from PoW) consensus method to the PoS consensus mechanism.
- Merging will result in a 0.2% decrease in global electricity consumption.
As The Merge goes live, Ethereum has successfully switched from the proof-of-work (PoW) consensus method to the proof-of-stake (PoS) consensus mechanism, considerably increasing the network’s sustainability. Vitalik Buterin, the founder of Ethereum claims that the merger will lower global electricity use by 0.2%.
"The merge will reduce worldwide electricity consumption by 0.2%" – @drakefjustin
— vitalik.eth (@VitalikButerin) September 15, 2022
It is important to note that there has been pressure to make PoW digital assets illegal in the US and the EU, with the EU coming dangerously close to outlawing Bitcoin in March. Notably, environmentalists and politicians hostile to digital currency have frequently equated the energy usage of Bitcoin and Ethereum to that of small nations.
Bitcoin is in a precarious situation as a result of the Ethereum upgrade. The only cryptocurrency asset still using PoW is the market leader. If Ethereum and other cryptocurrencies merge successfully, there may be more political pressure on Bitcoin to change or face extremely constrained political constraints.
The Merge makes Ethereum deflationary by reducing the annual issue of the asset and encouraging investors to hang onto their money with the introduction of the staking economy, even though it does not reduce gas fees or speed up transactions. As a result, supply is decreased while demand is expected to rise.
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