This is the fate of Ethereum after the merger

The Fate of Ethereum After Merge

The merger represents a radical change to the transaction on Ethereum as well as the ETH issuance mechanism. The Ethereum Foundation says this new mechanism will require 99.5 percent less energy.

The exact time for the merge to take place is unknown, but sites that track Ethereum say the process will take place on Thursday morning.Reuters reports that the Ethereum Foundation said the merge would take place between September 10 and 20 after being postponed repeatedly. If successful, Ethereum will transition from a proof of work (PoW) consensus algorithm to proof of stake (PoS).

PoW is referred to as a high-energy process where computers validate transactions by solving complex mathematical problems.PoS is a protocol where individuals and companies act as validators using ETH as collateral to win new ETH.

The crypto asset market plunged sharply in the face of a sluggish macro economy and caused investors to sell off riskier asset classes.Nevertheless, ETH was able to strengthen 65 percent since the end of June in the course of the merger. At the same time, Bitcoin (BTC) did not experience significant price changes.

James Malcolm, Head of Forex Strategy at UBS, said the merge was an important development for Ethereum's evolution plan. But this does not necessarily have an impact on the price of ETH.The use of energy by blockchain technology has drawn criticism from investors and environmental organizations. According to Digiconomist, one transaction on Ethereum PoW consumes the equivalent of one US household unit in one week.

For supporters of the Ethereum merge, the more energy-efficient upgrade is a big step in the race to become the number one blockchain in the world.Ethereum has become the blockchain of choice for a variety of functions in the decentralized finance (DeFi) sector, including smart contracts involving tokens that represent traditional assets such as stocks and bonds.

Ethereum proponents say blockchain will become the basis for a new financial system, where currency and assets can be traded in cryptocurrencies without the need for traditional financial service providers.Ethereum is also seen as the foundation for the Web3, the newest form of the internet where crypto and blockchain are central to the activity.