Ethereum: Environmentally friendly 'Merge' update is only the first step

The upgrade from Ethereum was in preparation for years. The blockchain platform has successfully switched from the approval of transactions to mathematical problems to crypto stands, a change that is known as a merge. The new "Proof of Stake" model is intended to reduce energy consumption by more than 99 percent.

The fusion, which is celebrated as a make-or-break moment for crypto, has contributed to raising almost 50 percent from its low point in June. But the prices remain far below the maximum of last year. The crypto winter has not broken out.

The Ether of Ethereum is the second -known digital token according to Bitcoin. The merging of the main network with an Ethereum network that already uses Proof-of-Stake transactions could help revise Krypto's reputation as an environmental disaster.

But although the merging was technically difficult, most Ether owners have not changed much. The energy requirement for the blockchain was reduced, but the fees have not decreased. The transaction times have not improved. It is possible that the switch to Proof of Stake means that more decentralized financial applications are carried out on the Ethereum blockchain. On the other hand, you may be waiting for future updates for capacity expansion. Investors remain more fixated on inflation and remove risks from their portfolios.

The change could give validists with a large ether pool that they can use, give more power and achieve a return for the “staking” of their tokens. Just as Proof of Work Mining Groups with access to large computer performance, Proof of Stake will benefit those who have an existing amount of tokens. The required minimum insert is 32 ether-this corresponds to almost $ 48,000.

There are risks. Token can be confiscated if transactions are invalid and operations cannot be withdrawn until the next software change that can be removed for one year.

The really transformative news this week came from Fidelity, Citadel Securities, Schwab and others who founded a crypto exchange called Edx Markets. The continued interest of Wall Street in Krypto could have a stronger impact on prices than the merger.