Blockchain

Why did Ethereum shift to a Proof-of-Stake model?

Ethereum’s shift to a proof-of-stake (PoS) model has been all over the news lately. The merger is finally complete and now it relies on the PoS model for verifying all transactions carried out on the blockchain.

The Ethereum merger was long-awaited. Until now, all Ethereum transactions were verified by the inefficient and power-hungry proof-of-work (PoW) model. Due to this model, Ethereum relied on large amounts of energy to carry out its day-to-day work. Power-hungry PC graphics cards were implemented to verify Ethereum transactions, a process referred to as “mining.”

What are the benefits of the Ethereum Merger?

Thanks to the merger, Ethereum operations now consume 99.5% less energy than they used to. The process has improved transaction speed while reducing costs. However, investors and stakeholders might be losing faith in the cryptocurrency as prices have fallen ever since the merger was completed on September 15.

It is worth noting that Ethereum is one of the largest cryptocurrencies available on the market. It is the second most valued coin, only behind Bitcoin. Thus, this merger is a massive move that has affected the entire cryptocurrency market.

The Ethereum merger comes as a massive step in making cryptocurrency transactions greener. Lately, the White House has been cryptocurrency users to reduce energy utilization involved in the process. With major global economic powers like China pressing down on cryptocurrency, with some outright banning the use of digital currency, limiting energy draw was required. The merger ensures the second-most popular crypto draws only 0.05% power as it used to.

Following the merger, the coin is now down by 20% and is currently down to $1,245.65 per coin. Ethereum users, however, will not face any major issues after this upgrade. The update was mainly rolled out to improve the infrastructure. Thus, users holding Ethereum wallets, carrying out transactions, or with others’ addresses will have no issues carrying out their normal transfers.

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