- The test is one of the last items on the agenda before the so-called “Merge.”
- Even if it’s not set in stone just yet, the 19th of September is the target date.
Ethereum is on the verge of switching from its current energy-intensive proof-of-work paradigm to the more efficient proof-of-stake (POS) system.
The Goerli testnet has been successfully merged and is now a full Proof of Stake chain.— sassal.eth 🦇🔊🐼 (@sassal0x) August 11, 2022
Next up is (finally) the Ethereum mainnet!!
The Merge is coming 🐼
Ethereum’s new PoS system was tested this week, and the network will formally switch over to it next month. When implemented, the change might herald a watershed moment for the cryptocurrency sector, which has long faced criticism for its alleged impact on the environment. The test is one of the last items on the agenda before the so-called “Merge” goes into action.
To summarize, POS proponents, climate scientists, and others have agitated for Ethereum to abandon POW because of the enormous amount of energy required for mining. The days of Bitcoin and Ethereum miners being able to utilize their own computers to earn the digital currency have long since gone. In order to tackle the complicated mathematical issues involved in Bitcoin mining and transaction verification, the network allegedly consumes around 200 terawatts of electricity annually. That’s the annual energy use of many small nations.
To “validate blocks,” Ethereum owners provide their coins as bail. Afterward, these “validators” are chosen at random to verify the legitimacy of each blockchain transaction. Advocates of the Merge argue that this means proof-of-stake mining will be 99 percent more efficient than proof-of-work approaches in terms of energy utilization.
The Ethereum Goerli test network apparently ran a simulation of the merge next month during testing this week. Multiple cryptocurrency experts, including Ansgar Dietrichs of The Ethereum Foundation, deemed the event a “successful test,” despite the fact that it did not go off without a hitch. Ethereum (ETH), increased in value by 11% on Thursday after the testing, as per CMC.
Vitalik Buterin, co-founder of Ethereum, first proposed the notion of a POS transition many years back, but a firm date wasn’t set until earlier this year. Even if it’s not set in stone just yet, the 19th of September is the target date.
Even if Ethereum is successfully transitioned to POS on that date, the environmental concerns around cryptocurrencies will not magically disappear. The main cryptocurrency, Bitcoin, still uses PoW, and this isn’t going to change any time soon. There are also numerous other, smaller proof-of-work currencies. However, Ethereum is the second biggest blockchain, so any decrease in energy usage that comes near to what POS supports would be a significant and meaningful development.